If you were ill a century ago, you went to the town doctor. The physician would see patients with all measures of ailments—headaches, pregnancy, shoulder pain, surgeries, heart attacks, and more. The doctor would know a little bit about a lot of different illnesses and try to cure each patient.
As a progressive society that was gaining more knowledge, we quickly realized each area of the body is highly complex; we therefore now have specialists. Hence, if you have a foot issue, you see a podiatrist. A heart attack necessitates a cardiologist.
Yet, in the financial services industry, we’re still living in a one-doctor town.
When a client has a financial situation, they go to a financial advisor, often a generalist. That person is supposed to know everything, including insurance, wealth accumulation, decumulation, estate structuring, retirement planning, retirement plans, and more. But why?
Generalists, too, know a little bit about a lot of different topics and do their best to solve all problems. However, wouldn’t we agree financial lives are equally as complex as physical bodies? If so, why are we still living this way? Because it’s the way it’s always been done.
A recent Fidelity survey reported that 91 percent of retirement plans are serviced by non-retirement plan advisors. This means that nine out of 10 plan sponsors are not seeking a specialist for their retirement plan services. In short, they are going to a podiatrist for a heart attack.
How can retirement plan advisors promote their singular expertise and specific focus? Marketing, advertising, and plan sponsor education
Only through education, time, and experience do the general public learn about specialists. Thus, we have a big challenge ahead—to educate plan sponsors about the benefits of retirement plan experts.
The average person experiences over 5,000 advertisements per day, and it will take a focused effort to rise above the advertising clutter to gain educational momentum. Thankfully for retirement plan experts and fiduciary advisors, there’s currently a lot going on—from the redefinition of fiduciary at the DOL to Justice Breyer’s comments on “continual and on-going” fiduciary responsibility. There are a lot opportunities to rise above the noise and become known throughout your community as the “go-to” retirement plan expert.
Today’s plan sponsors are smart, educated, and addicted to Google.
Perhaps the reason that nine out of 10 retirement plans are serviced by non-experts is simply because plan sponsors can’t tell the difference between a podiatrist and cardiologist. It could also possibly be due to the fact that many retirement plan experts haven’t separated themselves from financial advisors. Therefore, the plan sponsor doesn’t understand the value or benefit of getting to the heart of the matter.
Financial lives are as complex as physical bodies; therefore, there is a need for specialists. Retirement plans specialists are a unique segment of the financial services industry. Today’s society is more connected and aware than ever before. Therefore, it’s surprising that with all of the world’s information at our fingertips, we’re still seeing, accepting, and doing what we did years ago.
About 401(k) Marketing
We believe the retirement plan industry can do better. Our clients are the best professional retirement plan advisors in the business. They care deeply about saving America’s retirement future. We are proud to share their voice through industry writings, professionally-designed brochures, and marketing collateral. We assist in promoting their businesses through on-going awareness campaigns. 401(k) Marketing is based in San Diego, CA. Check us out at www.401k-marketing.com.