Retirement Plan Advising

Create a clear value proposition for your retirement plan practice

Published onOctober 23, 2020

5 MIN ARTICLE

Your value proposition statement articulates your core principles as a financial professional. Here are the steps to producing a statement that speaks to clients.

KEY TAKEAWAYS
  • Create powerful, customized value proposition statements
  • Convey your core principles as a financial professional 
  • Reach three types of retirement plan clients 
  • Underscore your commitment to superior outcomes

Step 1: Create customized value proposition statements (VPS) for three types of retirement plan clients

 

How to do it:

For IRA clients: Use the value proposition tool for individual retirement plans. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Retirement planning
  • Investment selection
  • Customer service
CREATE A VPS FOR IRA CLIENTS Sample VPS: IRA client arrow_forward

For retirement plan sponsors: Use the value proposition tool for employer-sponsored retirement plans. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Overall plan servicing philosophy
  • Plan sponsor support
  • Commitment to participant education and ongoing services
CREATE A VPS FOR RETIREMENT SPONSORS Sample VPS: Retirement plan sponsors arrow_forward

For retirement-income clients: Use the value proposition tool for retirement income. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Retirement-income planning
  • Investment selection
  • Ongoing customer service
CREATE A VPS FOR RETIREMENT-INCOME CLIENTS Sample VPS: Retirement-income clients arrow_forward

Step 2: Print copies of the VPS documents on your letterhead

 

How to do it:

  • Each of the tools will generate a one-page VPS document in PDF format.
  • Save the file on your local desktop and print copies on your letterhead to further customize your statement.
  • Remember to have your compliance department review and approve your VPS (if required by your firm) before sharing it with clients.

Step 3: Put your VPS to work

 

How to do it:

 

For prospecting:

  • Distribute your individual retirement account (IRA) VPS to prospective clients at seminars or presentations as your calling card to show that you’re committed to helping them live comfortably and confidently in retirement.
  • Provide your employer-sponsored retirement plan VPS to interested plan sponsors to highlight your ability to provide superior ongoing service and summarize what you can do for them.
  • Use the retirement-income VPS with clients or prospects who are close to retirement or who are concerned about having enough income in retirement.
  • A VPS is also a useful tool for networking with other professionals (e.g., CPAs or tax advisors) who can refer clients to you for their retirement needs.

With existing clients:

  • Present your VPS to existing IRA clients during an annual review, along with the personalized investment program you created for them.
  • Your VPS can be a great icebreaker to begin a discussion with plan sponsors about their plans. Customize your VPS to reflect the concerns that are most important to individual plan sponsors and use it as a way to reintroduce yourself to your existing clients.

Related content

A Strong Value Proposition Statement Can Help Open the Door to New Sales (PDF)
4 reasons to add retirement plans to your practice (and how to get started)
Expand your practice with retirement plans
Connecting the retirement business to wealth management, with Jonathan Freeman and Brian McCarver
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
Effective July 1, 2024, American Funds Distributors, Inc. was renamed Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.