Life as a retirement plan advisor can be tough (to say the least).
Managing increasingly high client and prospect expectations, an uncertain regulatory environment, navigating new technology, and fighting against downward pressure on management fees can take its toll.
This is in addition to any self-imposed challenges—whether making the transition from a commissionable to fee-based practice, or setting aggressive revenue targets due to a strong market at the beginning of the year that has petered out as the months unfold.
But it can also be fruitful and rewarding. Many plan advisors have had banner years, and many have ample reason to be confident as we head into 2019.
As you are wrapping up the year, there is one overarching piece of advice to keep in mind as you bid goodbye to 2018:
Don’t settle in 2019.
Below are three areas to pay attention to, particularly as it relates to serving your clients and growing your practice.
1). Don’t Get Distracted by ‘Trendy’ Technology
A lot has already been said about how technology has and will continue to impact the retirement space. Staying up to date on various platform technological enhancements and ensuring that you leverage technology in your own practice to drive efficiencies is critically important.
But don’t be caught starry-eyed by the latest bells and whistles that only drive up costs, without actually yielding better outcomes for your clients or for yourself.
Think about the technology that providers offer you and your clients and how it works for you. Does it allow you to scale? Does it promote better relationships for you with your clients? Does it catch you up to competitors or allow you to surpass them?
If not, it might be time to reexamine the providers with whom you choose to partner.
Make sure that their tech enhancements are things that clients truly need, are worth the price, and are measurable.
A polished website and mobile interface are important, but ask yourself whether the efficiencies afforded by technology are allowing you to do your core job, promoting positive retirement outcomes, profitably and effectively.
2). Don’t Give Up Your Independence
If you have made the recent decision to adopt a fee-based compensation model—or perhaps made that decision years ago—you are betting your success on the uncompromising objectivity you bring to your clients.
If that unbiased nature is one of your value propositions to your clients, make sure you do everything you can to preserve that selling point. Ask yourself tough questions as you choose your partners.
In order to grow your practice, will you have to give up some flexibility or autonomy? Are you able to bring on a partner that aligns with your values as you grow your own practice?
In short, do what you can to avoid situations where you may be forced to compromise on your beliefs, such as bringing in a recordkeeper that mandates the inclusions of their own funds or stable value solutions.
This is easier said than done considering the consolidation in the recordkeeper space and the economics that confront us all. However, it’s still possible to choose partners that will enable you to maintain and evolve your value proposition without sacrificing the standards on which you built your business.
3). Don’t Limit Yourself—Or Your Revenue Streams
By taking advantage of technology to increase efficiency, and establishing an objective reputation, you’ll be able to provide additional revenue streams for services such as financial wellness, college financial planning, trust services, and cash balance plans.
Cost is one of the biggest components of a retirement plan and can significantly affect the long-term outcomes of savers and participants. Over 10, 20, 30, or 40-plus years, plan fees can end up costing plan sponsors and participants thousands of dollars, thereby materially impairing their prospects of retiring comfortably and on their chosen timeframe.
When you contain costs by harnessing technology, you are not only improving savings outcomes for your clients, but also establishing trust and therefore increasing your ability to offer them other solutions that can produce ancillary revenue streams.
As you are expanding your offerings, expand your client base as well. With effective technology and a disciplined model, it may be just as profitable servicing a small-market plan as it is to consult on one with tens of millions of dollars.
By increasing the size of your sales funnel, you are positioning yourself for a promising 2019 and beyond.
Have Your Cake, Eat It Too
There will always be challenges in the retirement plan advisory industry, and those challenges will evolve over time.
The one thing that you can control is how you respond to those changes, and the standards you keep for yourself and your partners. Be picky. Don’t compromise your values.
Stay flexible, independent, and objective. By partnering with companies whose technology and expertise help you unlock your own growth and scalability, you can thrive without having to settle.
Jason Crane is head of retirement sales at Ascensus.
Jason Crane is head of retirement sales at Ascensus.
