Is it just my imagination, or is it getting harder to open up new investment advice relationships with new clients?
I have found an easy way around this current prospecting problem: I prospect individual company 401(k) retirement plan participants who work at the same companies as my current clients.
Every investment advisor has clients who interact with others in the workplace. Plus, these clients often have spouses who work. There’s no excuse for not having new investment advice prospects to talk to.
It’s becoming increasingly more difficult to be a general investment advice provider. But there’s a dramatically underserved investment advice niche in today’s marketplace: helping individual investors navigate their company 401(k) retirement plan menu of options.
I prospect every day to solve the individual company 401(k) retirement plan investment management problems of individual investors.
Over the last 15 years, I’ve developed expertise providing individual company 401(k) retirement plan participants with customized investment advice on their default company retirement plan menu.
Step 1: Niche focus
I began my work in this niche by offering a free company 401(k) retirement plan analysis to my existing clients. It took me about two years to gather the company retirement plan names, company retirement plan providers, and the default list of menu options.
But I now have a complete understanding of the company 401(k) retirement plan menu of options. I don’t think it’s an exaggeration to say that I have a deeper knowledge of the company retirement plan menu than many of those working in human resources or employee benefits departments.
I provide a disciplined tactical asset-allocation game plan where none exists. I also provide a stock market risk management game plan instead of the “buy-and-hold” that company 401(k) retirement plan providers have promoted for generations.