{"id":3007,"date":"2019-03-14T23:36:07","date_gmt":"2019-03-15T04:36:07","guid":{"rendered":"https:\/\/www.rixtrema.com\/blog\/?p=3007"},"modified":"2019-11-13T12:05:05","modified_gmt":"2019-11-13T17:05:05","slug":"case-study-diversifying-401k-plans-as-a-great-prospecting-opportunity","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/case-study-diversifying-401k-plans-as-a-great-prospecting-opportunity\/","title":{"rendered":"Case Study: Diversifying 401(k) Plans as a Great Prospecting Opportunity"},"content":{"rendered":"

The Ask:<\/b><\/span><\/h3>\n

Creating a great proposal that will increase interest from your prospects should be ideal not only in terms of cost-efficiency but also in terms of diversification. While cost-efficiency is based on the fund fees and performance, diversification means protection against market loss, which can potentially dramatically decrease your plan savings.<\/span><\/p>\n

The Problem:<\/b><\/span><\/h3>\n

When you search for plans in your area, the main purpose of the Plan Screener<\/strong><\/span><\/a> page is potential plan savings. No doubt, that\u2019s a good approach for prospecting, but behind the software you can find much more than that. For example, there is another key parameter called diversification, which is not visible on the first page.<\/span><\/p>\n

Even if a plan report doesn\u2019t show any significant savings, it doesn\u2019t necessarily mean that the plan is well diversified, which gives you another great opportunity to prospect.<\/span><\/p>\n

The Solution:<\/b><\/span><\/h3>\n

The 401kFiduciaryOptimizer<\/a> algorithm rests on the measure called similarity, which is an average correlation of two factors:<\/span><\/p>\n