A new world for retirement plan advisers

The convergence of financial advice with broader client financial and physical wellness is not new to advisers. Indeed, my brothers and I reap the benefits of a complete health and wealth plan that our dad’s adviser constructed 20-odd years ago as we manage care for our mom.  

The retirement plan adviser world, however, has just begun to enter this level of service. In light of that, InvestmentNews and The Retirement Advisor University recently partnered on the launch of RPA Convergence, a new website that focuses on this trend for the RPA universe. Put simply, the impact of this convergence is that record keepers, distributors and money managers now compete to provide advice and gain “control” of participants.  

Control sounds ominous, but its intent is to support greater financial wellness for participants. The reality is that the average client’s house is in reasonably good order, but mass affluent plan participants may need debt counseling and guidance on whether it’s better to reduce debt, fund an HSA or Roth, or commit to their 401(k). 

This need for holistic service led to a valuable discussion on the soft skills to look for in the hires firms are making. As one participant at October’s RPA Convergence CIO Think Tank noted, you can no longer just hire a finance major for these positions. You need to hire someone whose skill set includes connecting to clients and making them comfortable looking at the broader needs while applying behavioral finance and other tools to help better serve the client.