Employer retirement plans have become much more complex over the last decade due to ever-changing ERISA, DOL, and governmental regulations. Competition in this space has also been fierce since increasing numbers of advisory firms are offering this service. If you think about it, if you have a client in your current book for whom you are managing personal assets, AND this client also owns a business and offers a 401(k) that is with another advisory firm, your relationship with said client is vulnerable. How? Because it’s extremely likely that the advisor managing the 401(k) business is dripping on your client to move their personal assets away from your firm.
How can you avoid or amend a scenario like this? You can partner with an employer retirement plan advisor to help mitigate this competition.
The Prosperity ERP team will stand beside you every step of the way, taking on the administrative and operational duties of an employer retirement plan. You can be as involved as you would like. It is recommended that you at least remain engaged with the owner and all highly compensated employees. Keep in mind, every employee of that company will at some point have a financial planning need and will need your assistance, whether that’s a rollover to an IRA, an inheritance, maybe an insurance need, or even a 529 Plan. You want to be the first advisor they think of for this need! With Prosperity as your ERP partner, all referral opportunities generated from scompany retirement plans go straight to you!
What Will Our Team Do For You?
- Assist with the plan design
- Conduct plan reviews with the owner(s) and trustees
- Assist with the fiduciary compliance
- Create and maintain Cetera’s Plan Advice Consulting Plan Agreement
- Assist with creating an Investment Policy Statement
- Assist with creating a Retirement Committee Charter Document
- Conduct ongoing plan-level investment recommendations and monitoring
- Assist with all participant phone calls and email inquiries
- Offer one-on-one meetings with employees
- Offer group education meetings for employees
- Work with auditors, third party administrators, recordkeepers, custodians, and payroll companies to help the plan stay in compliance
Our role is not to take any business away from you; we are there to partner, improve, and enhance the relationship so that you can grow the individual side of your business as well.
If you have a goal to get into this space, take some time to see if you have (or want) connections with business owners without being bogged down with all of the duties surrounding the operation of an employer retirement plan. We can take most of the duties off your shoulders!
How Does The Partnership Work?
Using a shared rep code, we can design a partnership! Revenue generated from the plan is split 50/50 between us and you. However, as stated, any opportunities generated from that plan (rollovers, insurance, brokerage accounts, 529s, etc.) are 100% yours. You will not split any of that revenue with us.
Working with the employees of a company allows you to have warm leads from each employee for future business!
It’s a great time to get into this business since over the next few years, in more and more states, the government is mandating that small business owners set up some type of employer sponsored retirement plan. If you don’t dive into this space, other advisory firms will, making for some fierce competition! We want to partner with you to help you grow your book! If you would like to further discuss possibilities, please reach out to Joe Pelle joe@prosperityadvisors.com or Amber Roane Amber@prosperityadvisors.com or call 330.576.4554. We’re always happy to have a conversation.
Internal Use Only