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October 26, 2011 at 07:37 PM
As a state or federal registered investment advisor, have you ever thought about building a business niche advising individual company retirement-plan participants on the menu of available options in their company retirement plans?
Never heard of such a thing before?
I get that same response from both RIAs and brokers who have never taken the time to explore their existing clients individual company retirement-plan accounts.
After the wild ride of the stock markets so far in 2011, I think it is safe to say that you would find a high level of interest from your existing client base in a level of investment- advice product regarding their company retirement-plan accounts.
Remember, that in this day and age, many of your existing clients have working spouses. Both spouses are participants in a company retirement plan. You likely have two pools of company retirement plan assets in the same household that are in need of investment advice.
Company retirement-plan accounts are in many cases the largest dollar-value accounts that most individual investors will ever have. They desperately need help making better investment decisions on these retirement plan accounts during their working lifetime.
Whether individual investors work for the government, a small business or a Fortune 100 company, their individual company retirement plan account can grow into well over $1 million in value over their working lifetime.
The 401(k), 403(b) and 457(b) company retirement plans are all opportunities for investment advisors with the right knowledge and training to gather tens of millions of dollars of new assets to manage for a fee.
The vast majority of advisors that I have spoken with, taught online or met through my seminar have never had a meaningful conversation with their best clients on how they could improve the risk management and investment performance in the clients’ company retirement-plan accounts.
Just this week the Department of Labor issued final regulations designed to improve the access to investment advice for millions more of individual company retirement-plan participants.
Now even company retirement-plan “brokers of record” can provide investment advice to the individual company retirement-plan participants on the menu of investment options in their company retirement plans.
See the DOL announcement here.
I have been providing investment advice to individual company retirement-plan participants for over 11 years. In that time, I have built an individual company retirement-plan participant advisory client base at every company retirement plan sponsor imaginable.
