A new world for retirement plan advisers

A new world for retirement plan advisers
The average client’s house is in reasonably good order, but mass affluent plan participants may need additional help
NOV 09, 2020

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.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.