To build assets, think rollovers

APR 24, 2011
The key to winning a bigger wallet share of retirement assets from affluent investors is as simple as building up expertise at winning client rollovers into IRAs and other retirement fund transfers. At least that's what the Bank of New York Mellon Corp.'s Pershing LLC custodian business has found. Accordingly, it has launched a website, retirementpowerplay.com, with tips for advisers on how to win 401(k) rollovers and how to build a business advising employer 401(k) plans. The best place to begin is to evaluate current clients and develop a list of 20 or so high-potential clients. They should be between 45 and 55, have changed jobs or been laid off recently, hold accounts at more than one institution and be close to retirement with the need for an income distribution strategy. Pershing also suggests that advisers prepare for meetings by brushing up on 2010 tax law changes eliminating income restrictions for Roth individual retirement account conversions and by learning about various IRA offerings and retirement calculators.  Pershing cited its research that $303 billion in IRA rollovers and taxable retirement transfers occur annually and that employees 55 to 64 represent nearly half of that money. The adviser who wins their retirement-planning business typically ends up with the largest wallet share of affluent investors. “A lot of advisers don't understand the implications of what is going on regarding the growing value of IRA rollovers,” said N. Scott Pritchard, managing director of retirement plan consulting services with Capital Directions LLC, an independent investment adviser that manages $750 million. He said he often works with advisers to help them capture 401(k) rollovers. Capital Directions has advised registered investment advisers on acting as fiduciary advisers to 401(k) plans, which he called a growing field. As more advisers get into the retirement plan market, they need to be careful to comply with regulations that prohibit advisers from pursuing rollovers from employer plans they are advising, Mr. Pritchard warned.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.