Bill Chetney kicked off GRP Advisor Alliance annual summit at San Diego’s historic Hotel Del Coronado Friday morning by noting that “Millennials get knocked for many things, but here is a testimonial as to why you should hire more of them.”
With that, a video introduction to GRPAA’s Finnovation Conference was shown, with fintech taking center stage on this year’s agenda.
Interspersed with familiar and funny movie clips (Doc Brown: “Roads? Where we’re going, we don’t need roads.”) the video detailed where the industry is headed, noting financial wellness, business expansion, succession planning, and overall industry trends, all involving technology.
“There are all these widgets; half that want to help you and half that want to kill you by ‘robo-ing’ you out of business,” Chetney said.
A brief history of the modern 401k business followed, with which Chetney was heavily involved, and he recalled a conversation with Dick Darian, CEO of M&A consultant The Wise Rhino Group, in which Darian approached Chetney about taking it “not to 11, but 12” followed by the famous clip from the movie Spinal Tap.
With that, their high-profile 12-point due diligence system launched.
Pointing to the development of comprehensive investment menus, he claimed they were confusing to many advisors, and read like a foreign language.
“Advisors aren’t investment managers, and they were overwhelmed,” Chetney stated.
Target date funds
Moving to the development of target-date funds, he cited the SEC in noting they are misunderstood by many participants.
“For example, 40% think they’re guaranteed.”
Employing another video, amusing, faux “man-on-the-street” interviews were shown:
Reporter: Do you have a TDF?
Respondent No. 1: No, the free clinic said I was clean.
Reporter: Do you have a target-date fund?
Respondent No. 2: Yes, I have a dating app on my phone.
Chetney compared financial wellness to stepping on a scale (“and if you’re American, you’re fat”), he said there should only be three, not 40, exercise options. Financial coaches act as trainers, and innovative firms like 401k cashback companies like EvoShare are similar to Fitbit.
But advisors are central to the process.
“We have to put away the confusing investment menus that read like a foreign language and get out and talk to people,” Chetney concluded.
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.
