401(k) 'generalists' must become experts

The 401(k) arena has become a mature marketplace and providers are demanding specialized advisers, said Phil Chiricotti, president of the Center for Due Diligence. The center is an independent-research organization that specializes in analyzing the competitiveness of 401(k) programs for advisers. Mr. Chiricotti spoke at the final day of the Center for Due Diligence conference in Scottsdale, Ariz. “Transitioning from salesperson to businessperson.” “The bottom line is retirement specialists could continue to grow but the opportunity for generalists is a lot less,” he said. The retirement plans business has slowed at the vendor level, and Mr. Chiricotti said this means vendors need to work more closely with advisers. He said that plan providers and vendors are facing squeezed margins and productivity of sales is lower, but advisers can help improve those problems. Providers need to work more closely with advisers to grow in the space. “There’s a huge opportunity for vendors who want to teach Registered Investment Advisors (RIAs) about the retirement plan business,” he said. The Center for Due Diligence is based in Western Springs, Ill.