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Retirement Plan Advising

Using retirement plans to build your wealth planning business

Did you know the average established defined contribution advisors have more than double the assets under management compared to advisors that don’t manage retirement plans? According to 2023 research by Cogent, the average defined contribution advisor typically has $150 million in AUM, compared to generalists who have about $70 million in AUM.*

 

In fact, wading into the world of defined contribution retirement plans can help lead to a healthier wealth management business. And now is a great time to be in the retirement plan business. This course can show you how. 

 

*Source: Cogent and Escalent, “Retirement Plan Advisor Trends,” October 2023.

What you’ll learn

  • Gain new perspective on the benefits of managing retirement plans
  • Build a bridge from retirement plans to wealth management
  • Understand how to get started with two plans per year
  • Make sense of SECURE 2.0 Act changes
  • Find ways to attract new high-net-worth clients
  • Create an efficient process for plan management

What you’ll get

  • Case studies from an advisor who has built a thriving wealth business through DC plans
  • How to use individual retirement account rollovers to gain traction
  • Ideas for attracting new retirement business

Who can benefit

Financial advisors and RIAs looking to build or expand a defined contribution business, as well as grow their wealth management assets. 

Introduction: Why retirement plans?

2:31 MIN VIDEO

 

Our research shows that advisors have a lot of room to grow their defined contribution business. Yet even for established retirement plan advisors, most assets under management come from retail clients. When advisors offer both wealth and retirement plan services, they can reduce the client’s need to go elsewhere. And the benefits don’t end there. 

Lesson 1: Build a bridge to wealth with retirement

6:24 MIN VIDEO

 

When you manage retirement plan assets, you may find that an increasing number of plan participants are looking for help from an advisor with personalized, holistic financial planning. This presents an opportunity to generate business both on the retirement plan side as well as wealth management. 

 

Related: Connecting the retirement business to wealth management (6 MIN Article + 12 MIN Podcast)

Lesson 2: Get more consistent contributions

2:58 MIN VIDEO

 

Retirement plan business is often considered “weatherproof” because deferred contributions from individual paychecks tend to continue even in uncertain market conditions. Find out how this can be a great benefit for retirement plan investors as well as plan managers. 

Lesson 3: Find more prospective clients

2:17 MIN VIDEO

 

With more investors building wealth in their retirement plans, there is an opportunity to find and serve new clients who need you. Prospecting is not always easy, but building prospecting into every part of your service process may make a difference in results.

 

Related: How to prospect for new retirement plan clients  (5 MIN Article)

Lesson 4: Get started with just two plans per year

3:30 MIN VIDEO

 

If building a retirement plan business seems daunting, consider how adding just two new plans a year can help you grow over time.

 

Related: Expand your practice with retirement plans (4 MIN Article)

Lesson 5: Use rollover individual retirement accounts (IRAs) for traction

3:26 MIN VIDEO

 

To find prospective clients, pay particular attention to IRA rollovers. Many individuals today roll over assets when changing jobs — and 63% look to a professional for help.

 

Related: Manage individual retirement accounts (4 MIN Article)

Lesson 6: Understand how SECURE 2.0 can help

5:12 MIN VIDEO

 

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act makes it easier than ever for small businesses to create plans and for individuals to save in them. Knowing the ins and outs of the new regulations — including start up tax credits and automatic enrollment — can help with your prospecting efforts.

 

Related: Retirement saving gets another boost with SECURE 2.0 Act (8 MIN Article)

Lesson 7: Make sense of state sponsored plans

3:27 MIN VIDEO

 

States have been steadily increasing the number of state-sponsored plans. Depending on your state, this can be a tailwind for advisors looking to get into qualified plans.

 

Related: The current state of state-sponsored retirement plans (6 MIN Article)

Lesson 8: Know the importance of having a process

3:29 MIN VIDEO

 

Success is all about the process you put in place. The right partner can help.

CE Quiz: Put your knowledge to the test and earn CE credit

Take the quiz to receive one hour of CE credit from CFP or CIMA. 

Ready to put your results into action? Contact your Capital Group representative for more ideas on how to build your retirement business and help grow your practice.

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