401(k) Specialist interviews Craig Rosenthal from Fiduciary Benchmarks at the Excel 401k Conference in Las Vegas, discussing the value proposition advisors provide to their clients.
Below is a summary of the discussion:
Price Sensitivity: Advisors are facing price-sensitive clients, and the importance of communicating the value of services, such as 338 services, which are considered premium and worth a higher fee.
Quality Service Value Plus: Fiduciary Benchmarks developed a method called Quality Service Value Plus Extra Credit to help advisors demonstrate fee reasonableness by stating their quality, services, and value.
Defining Fee Reasonableness: Fee reasonableness is determined by the quality of services and the value provided, compared to typical advisor charges, incrementing based on additional value offered.
Conclusion: Emphasizing the importance of advisors getting monetary credit for extra work and ensuring their fees are reasonable based on the quality and value of their services.
The video provides insights into how advisors can justify their fees through a structured value proposition. Click here to watch.
See Also:
401k Advisors: Plan Sponsors Need to Hear Your Value Proposition
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
