Let’s face the facts. Financial advisors have two very large asset gathering strategy concerns going forward.
First, clients are becoming increasingly aware of the fact that many of the investment management services you provide to them are available online at much lower annual costs are many times just a click away.
Second, every financial services company on the planet is competing for the same after-tax brokerage accounts of the same individual investors. It is becoming increasingly hard to gather client assets that everyone else is chasing. Prospecting for new client assets is even worse.
Faced with these two advisory business realities, how is an advisor supposed to get excited about a 2018 campaign to gather more financial assets to manage?
What Your Peers Are Reading
Based on my experience, the answer lies in your existing client company 401(k) retirement plan accounts. These accounts are the “low hanging fruit” to gather both existing client and new prospect assets to manage.
I know many advisors provide loosely structured “pro bono” investment advice on company 401(k) retirement plan accounts in order to maintain existing client relationships. Free investment advice on existing client assets will not grow your practice.
You need a logical, organized, and disciplined compliance-approved campaign to gather, manage, and communicate investment management changes to the individual company 401(k) retirement plan accounts in your client households.
The current all-time stock market highs and heightened fiduciary investment advice climate is a once-in-a-career asset gathering opportunity to gather company 401(k) retirement plan account assets.
Here’s what you should do:
1. Ask your best clients for a copy of their default company 401(k) retirement plan menu and their year-end 2017 account statement. Not only will you find more client assets to manage, think about the prospecting list you are putting together.
Every experienced advisor is frustrated by their lack of client referrals. It is common knowledge that there are great individual investor prospects who work at the same company as your best clients.
2. Ask if they would like to have a copy of the prospect’s company 401(k) retirement plan account main menu mutual fund options.