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New DC aggregator appeals to independent RPAs
More RPAs are choosing to sell, in part to get referrals, especially if they are part of a benefits firm. But being part of a larger firm as an employee is not appealing to all.
What Empower’s purchase of Pru retirement business means for advisers
Empower has distanced itself from its other competitors; the only one that matters is Fidelity, which is bigger and more profitable because of its ability to cross-sell wealth management services to participants as well as offer proprietary products.
The value of a 401(k) participant, quantified
Who deserves to service and monetize the participants? The answer to that is whoever works the hardest, within the limits of the law, in a professional, conflict-free manner.
PEPs are here. But how successful will they be?
The case for pooled employer plans is compelling, especially to address the fact that there are 5 million to 6 million companies in the U.S. and just 650,000 defined-contribution plans.
Is the market for small 401(k)s a blue ocean for RPAs?
There are three major trends that could make the small and micro DC markets more attractive to retirement plan advisers.
How the 401(k) world will adapt as it wakes up after long pandemic
There will be vast differences, but the fundamentals of the business will be the same, as will the importance of strong relationships and brands.
Diversity could propel the 401(k) industry into its next phase of innovation
Lack of diversity is a problem for the financial service industry, and especially the DC market, where most advisers are white males. That is also true of industry executives, most of whom went to college in the Northeast or were trained by a provider there.
DC industry must cooperate to resolve forgotten-accounts problem
Anyone who has tried to roll assets out of a DC plan knows how difficult and time-consuming it can be.
Critical lessons from Columbia University’s 403(b) settlement
The lack of training for retirement committees and plan professionals is appalling, especially in the retail DC market. Many people got their job when someone walked into their office and said, 'Good luck, you’re now in charge of running our retirement plan,' and then walked out.
The future, as elite retirement plan advisers see it
The Retirement Research Center recently surveyed elite RPAs, half of whom had more than $300 million in DC assets under advisement.
RPA plan pricing is in dire need of a refresh
Though RPAs loathe comparisons to law firms, advisers are professional service providers like lawyers and accountants who charge based on the work and time spent. More experienced professionals can charge a higher hourly rate – and last time I checked, few of them are hurting.
The all-out battle over the 401(k) default option
The fight for the default option, like the competition to be a plan’s record keeper or adviser, could change the largely cooperative DCIO landscape.
Will RIA and RPA worlds converge?
Though registered investment advisory firms could benefit from hunting for new clients at the DC plans they manage, will they begin to acquire retirement plan adviser firms?
Data security concerns force the DC industry to cooperate
The recent Government Accountability Office report and even more recent Department of Labor guidance on cybersecurity hammer home the reality that protecting plan and especially participant data has become a fiduciary responsibility.
How the 401(k) industry can help attract young advisers
Training advisers to be financial coaches or mentors is more appealing to the younger generation. Rather than cold-calling or selling insurance or high-priced annuities, these younger advisers would be contacting 'clients' of their firm with the blessing, and fiduciary oversight, of their employer.
Potential Pru Retirement sale a cautionary tale of a 401(k) innovator
It is no wonder, but certainly disappointing, that one of the industry’s most innovative providers, Prudential Retirement, is reportedly exploring a sale. That highlights how much record keeping has become a commodity focused on scale and costs.
How yoga can help improve retirement plans
People benefit from being flexible, and the defined-contribution industry can too, as it attempts to provide benefits in a way that takes into account the individual needs of employees.
Reform needed to improve teachers’ retirement plans
The problem is largely a result of the multivendor systems common in teachers’ supplemental retirement plans. Brokers descend on unsophisticated teachers at work and sometimes at home, mostly offering high-priced annuities.
In-plan income is key to retirement security
Not having a retirement income solution within a DC plan is like having the pilots on a commercial flight parachute off midflight, forcing passengers to land the plane.
The critical importance of thought leadership for RPAs
RPAs need to create or use high-quality content. Ideally, RPAs get their content published or speak at industry events. Though social media is important, we have all learned that it is not necessarily reputable.
