The 8th annual Retirement Plan Advisor Summit Central in Chicago this week brought together many of the brightest minds in the workplace retirement industry for two days of great content and connections focused on sharing best practices to help advisors build their business.
While nothing compares to attending in person, here are a few interesting takeaways from various sessions to provide a taste of some of the topics covered.
Not every client is a good client
During a session titled, “Case Study Roundtable: Service Models and Third-Party Relationships that Excel in the Real World,” panelist Josh Schwartz, CEO of Retirement Plan Advisors, pointed out that not every plan sponsor client is a good client for advisors—and you need to know when a relationship doesn’t make (dollars) and sense.
“We’re all trying to build our revenue. We have to know who’s a good client for us—when it can be a profitable relationship,” Schwartz said. When a client starts asking for more, advisors have to be willing to push back and acknowledge that the extra service(s) were not part of the agreement. “We have to be able to say ‘no,’ or charge more because it costs us more to provide it,” Schwartz said. “We have to be comfortable charging the client for what they ask for.”
Schwartz also noted that under his firm’s business model, they limit which recordkeepers they will work with for smaller plans, as it isn’t feasible to work with 14 different recordkeepers. “Under $10 million in plan assets, we’ve locked the door on which recordkeepers we’ll work with,” Schwartz said. “’Here are the six we’ll work with for a small plan. If that doesn’t work for you, we aren’t the right advisor for you.’”
Making the best of recordkeeper mistakes
In that same session, Schwartz also noted how recordkeeper mistakes provide an opening for advisors to demonstrate their value to the plan sponsor.
“Every time the recordkeeper makes a mistake, it frustrates me, but it offers an opportunity to show the client why they pay me. I get it fixed,” Schwartz said, adding that recordkeepers who actually own their mistakes are the ones he prefers to work with. “They all make mistakes, but not everyone owns them. Who actually owns the mistake as a recordkeeper? Those are the ones I like.”
Building culture and relationships
In a Wednesday session titled, “Culture as a Competitive Advantage,” panelists Chuck Williams of Finspire, Kyle Nelson of intellicents, Lisa Drake of SageView Advisory, and Molly Beer of Gallagher discussed why culture matters and how they have built a winning workplace culture, the role of leadership in driving company culture, and tips on implementing a strategy to make an advisory firm’s culture a strategic advantage.
Among the comments were SageView’s Drake mentioning why it is important to learn an employees’ “love language”—or how they like to receive feedback—so you can provide that feedback in a way they appreciate and value. Nelson of intellicents noted that he has sent out little questionnaires to employees asking simple questions to help him get to know them better. “I get to know what they like to do, what drives them, and then periodically if I want to surprise the team, I know what to get them. That right there can create fun, it can create culture, it can create family,” Nelson said. “It doesn’t have to be complex; it doesn’t have to be anything crazy, but it’s these little tools that you can use to help create that culture that will set you apart from everybody else in the industry.”
When it comes to working with clients, Nelson also noted that his “superpower” is his ability to remember small details from conversations—about kids, pets, hobbies, etc. He is able to use that to build connections, often by using the old-school technique of sending handwritten notes through the mail.
“Things happen in life. Send them a note. Actually use the mail. I do that with handwritten notes and I let people know that I’m thinking about them,” Nelson said. “When you are developing your personal brand, you need to have certain characteristics that make you unique. You humanize that relationship.”
Rooting out the bad apples
“The No. 1 culture-killer is a bad apple. If you see it, you’ve got to manage it out.”
Molly Beer, Gallagher
In the session on company culture, the panelists were aligned that it is important to learn to get go of a team member who turns out not to be a good fit after all, which can be difficult given the investment of time and resources in hiring that person in the first place. Gallagher’s Beer said her company has a mantra that can be loosely translated as, “no jerks, no underperformers,” and they count on their leadership to root them out—and quickly.
“The No. 1 culture-killer is a bad apple. If you see it, you’ve got to manage it out. The longer you wait, the worse it gets,” Gallagher’s Beers said.
“If you’ve got someone toxic in the organization, that will just kill your business. You’ve got to handle that immediately,” Nelson of intellicents added.
A March 26 session titled, “The Other Side of the Great Consolidation: How Should Advisors Juggle Relationships with Fewer and Bigger Recordkeepers and Providers?” saw panelists Wendy Eldridge of Carnegie Investment Counsel, Kristina Keck of Woodruff Sawyer, and Shelly Horwitz of World Investment Advisors discuss the ripple effects for advisors in the wake of the recordkeeper consolidation wave.
Empower, for example, has significantly expanded its market presence through two major deals in recent years—acquiring the retirement business of both MassMutual and Prudential, each valued at approximately $3.5 billion. These deals have positioned Empower among the top recordkeepers, managing over $1 trillion in assets and over 10% of total defined contribution assets under administration.
Given the dependence and reliance so many in the industry have on recordkeepers when it comes to providing services, the session sought to provide insight into how advisors can turn consolidation to their advantage.
“These acquisitions bring change—sometimes painful for plan sponsors, advisors, and participants. While challenges arise, so do opportunities—especially for advisors who step in to support plan sponsors navigating the transition,” Eldridge said.
Indeed, a recordkeeper transition is one of the most high-touch opportunities for advisors to demonstrate their value. Advisors who lead with clarity, communication, and calm can easily become a plan sponsor’s most trusted partner.
Whether it’s providing help in vetting options or fees, assisting in issuing and reviewing RFPs, coordinating participant communications during transitions, helping sponsors understand their fiduciary obligations throughout the transition, or post-transition support, a recordkeeper transition can be the plan advisor’s time to shine.
RPAS West coming in September
With the Chicago event in the books, work has begun on creating a whole new set of topics for sessions at the next event, RPAS West, set for September 16-17 in Newport Beach, Calif. Click here for more information.
SEE ALSO:
• How Using Guaranteed Lifetime Income Research Can Grow Your Book of Business
• Top Retirement Plan Advisors Gathering in Chicago
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
