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Monday, August 2, 2021

Vital Tips to Offering Fiduciary-Friendly Rollover Advice

One fiduciary-friendly rollover advice can come in the form of the explanation why rollover would benefit a client. For example, if a client currently has 401k plan with an employer, rolling over part of the contributed money can help a client to take a better control of the investments and retirement planning.

During the rollover, client and an advisor can develop individualized plan how to achieve a necessary goal to retire comfortably. This plan will allow investment flexibility which can boost the return and reduce the cost at the same time. The fiduciary-friendly rollover also comes with valuable advice and services that clients get from advisers which are absent, for most of the time, from being enrolled in the 401k plan. Here are a few other vital tips to always keep in mind:

  • Be sure to be completely knowledgeable about the client’s current situation. This includes knowing about their complete financial situation, employment, current portfolio/retirement plan options, etc. To recommend a rollover that is in a client’s best interest, you first need to completely understand the client’s personal circumstances to make a proper situation.
  • Be able to make a proper comparison of the current fees in the client’s current portfolio and what they would look like after rolling over. This includes both fund management fees and any advisor fees. It’s crucial for the client to have the complete picture on their investment expense when deciding to rollover.

Make sure that any rollover will be well within the client’s risk tolerance and suitable to them. The suitability of a rollover portfolio to the client is a vital piece of the puzzle when staying in the client’s best interest. This means gauging their risk tolerance and making sure that a portfolio’s risk will be in the right spot for the client’s goals and fears.


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