Retirement Plan Advisors usually have their own personal methods and strategies in their business practice when approaching retirement plans. Advisors who represent the interests of retirement plans must take on a role of an advocate for the plan. Those who possess all of the necessary information and tools must keep the sponsors updated on the changes (no matter how small) that might impact plan holdings and its participants. Do not forget that trust is the most important asset when it comes to plan advisor and plan sponsor relationship.
To stay ahead of the competition and current trends to become a plan advisor of choice, every advisor should be ready to ask these questions while approaching a plan sponsor:
1. Does your current adviser have any conflicts of interest with the plan investments and/or did they tell you?
2. How educated are your participants about what they are actually invested in?
3. What level of planning does your current advisor provide to your participants?
4. Does your current advisor help participants with portfolio selection customized to the participants’ situation?\
5. Ask a plan sponsor if they’ve recently done a diversification or cost analysis on their plan. Be sure to read more about it here: Quick Guide: Asking Plan Sponsors the Right Questions
6. Is the current plan lineup meeting the needs of participants?
7. Did you examine the needs of your participants when choosing the glide path for your target date family?
8. Do you know, what is the acceptable level of risk your participants are willing to take for returns offered by Target Date Funds?
9. How well is your advisor paying attention to the diversity of your plan investments and adhere to 404c ERISA compliance?
10. How often your adviser reviews and adjusts the allocation of your plan investments according to their current market circumstances?
11. Are your employees that are getting ready to retire maxing out their contributions?
12. Do you have enough money in your Fidelity Bond to protect you in case of legal trouble for the plan?
13. Do you offer in service withdrawal?