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THE FIDUCIARY ADVISOR'S
ROLLOVER TOOLKIT
Tuesday, October 9th
1:00 PM EDT
- Are you a Fiduciary to your Retirement Plans?
- Can you be certain you are not an "Accidental Fiduciary?"
- Have you been passing on Rollover Business because you feel it may be a Prohibited Transaction under ERISA?
There is now a solution for
ALL advisors to start building
and protecting a
Million Dollar Rollover Business
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7Twelve Annual Conference
Dr. Craig L Israelsen will be hosting the 7Twelve Annual Conference for financial advisors and individual investors. The conference will take place from Oct. 18-19 in Salt Lake City, UT. The agenda is available at the 7Twelve website.
For more information, please contact Dr. Craig Israelsen at craig@7TwelvePortfolio.com.
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Interview with
Daniel Keating,
Year 1 Program Member
After Daniel Keating graduated from the University of Kansas in 2009, he joined his father's firm Keating & Associates with six offices in Kansas, Illinois and Oklahoma. Initially, he worked with supplemental group benefits. However, by mid-2010, Daniel wanted to challenge himself and began prospecting qualified retirement plans. He heard people from his firm talking about The 401k Coach Programs and, since he wanted more guidance in his new practice area, Daniel attended The 401k Coach Year 1 Program in April 2012.
"One of the most important things that I learned at the Year 1 Program was delegation," he says. Daniel learned how to delegate tasks to support staff. "This simple concept has helped me to focus more on sales." He explains, "Instead of eating up my time with putting together enrollment forms, I can focus on prospecting and taking care of existing business." He comments that the techniques he learned from Charlie have improved his management style: "I don't micro-manage my team anymore. This allows me to focus on the big picture."
Since the first of four sessions of the Year 1 Program, Daniel has customized Charlie's six-step process and developed his own repeatable system, which allows him to "stand out from the pack" and differentiate his business. Through the Program, Daniel also learned new ways to prospect: "I have narrowed my target market and this helps me focus on closing the right deals." He adds that his prospect pipeline is expanding.
Daniel concludes, "Year 1 Program changed my practice for the better. I use many of the techniques I learned from Charlie to improve and grow my practice every day."
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Grow Your Business 10x
Faster
Easier
Cheaper
Bigger
with The 401k Coach Programs...
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Sign up by October 5th for a
$500 early registration discount
Session 1 & 2 (Chicago):
Nov. 29th & 30th, 2012
Session 3 (webcast):
Jan. 30th, 2013
Session 4 (Chicago):
April 12th, 2013
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YEAR 2 Program
Sign up by October 1st for a $1,000 early registration discount
Session 1 & 2(Chicago):
Feb. 7th & 8th, 2013
Session 3 (webcast):
April 24th, 2013
Session 4(Chicago):
August 9th, 2013
or Contact Us to find out if you are a candidate for Year 2
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The Tech Tip Corner:
HootSuite
Purpose/Usefulness: Social Networking is an essential part of today's society. We use it to keep in contact with old friends, new friends, promote companies, engage with customers/clients; the list goes on and on. Social networking has an easy learning curve, but the hardest part of this new way of communication is managing all of your accounts between multiple websites and subscriptions. HootSuite solves this problem. In one application you can control Twitter, Facebook, LinkedIn, Google+ Pages, Foursquare, Myspace, WordPress, Mixi and many other types of accounts. HootSuite even offers post scheduling, custom analytics and top notch security to prevent any misuse of your pages.
Easier, Faster, Cheaper, Bigger: HootSuite makes it easier to manage your social networking profiles while enabling you to connect with your audience faster. With a low entry price of FREE, HootSuite definitely makes it easy on your wallet by being cheaper than most social networking managers. The functionality will assist you in making your business grow bigger and bigger.
How to get started: Head over to www.HootSuite.com and choose your plan/pricing. They offer 3 tiers ranging from free to $10 for upgraded features. I also recommend downloading the mobile app as well so you have the program with you at all times.
Investment: FREE - $10.00 (upgrade)
Reviews: "Hootsuite's beauty is its streamlined nature; you can view multiple social networking streams on the screen at the same time without opening new pages." - Kathy Yakal (PC Mag editor)
Comparable resources: Seesmic and TweetDeck
My take on the app: I've always been involved with Social Networking since the birth of MySpace and I found myself getting wrapped up in it a few years ago. I started using programs like HootSuite and they have helped me more than you could ever know. I've recently found myself using HootSuite (free) to see what it has to offer and I'm absolutely blown away by how easy and functional the application is. I encourage everyone to grab this program and do the same.
-DJ Ware
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America's Most Powerful Retirement Tool
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Paychecks for Life®
Join the hundreds of advisors who are sharing Paychecks for Life with their participants. Learn how to help your participants turn their 401(k) into a Paycheck for Life!
Read Press Release
Click Here to order your copy today or view our special Bulk Rates to include copies for your clients! |
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401k Coach Products
Don't forget to visit our online Coach Store for unique tools created to help distinguish your value-added services.
If you are a 401k Coach Member, be sure you are logged in to take advantage of the member discount!
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Greetings!
Several years ago at a 401(k) industry conference, I attended a session that focused on the role and responsibility of advisors who take on fiduciary status at the plan level. On the panel was a leading ERISA attorney and two distinguished advisors whose firms each managed in excess of a billion dollars in retirement assets. The room was filled to capacity with over 300 advisors. When it came time for questions, an attendee stood up and posed the following question: "As a fiduciary to the 401(k) plan, what would you do if one of the executives of the company, whose plan you have been managing for 10 years, said, 'I'm turning 65 this year and retiring. I've got over $3 million in my 401(k) account that I'd like to roll over to an IRA and have you manage it.'"
One of the advisors on the panel thought for a moment and then he answered, "Well I would have to tell him that I couldn't help him, because I am a fiduciary to the plan." There was dead silence in the room. You could hear a pin drop. And then a few minutes later, this same advisor said with great anguish in his voice, "I guess that makes me a poor business man!"
I walked away from that session determined to find out more about this entire issue. Why did this very successful advisor feel that he had to walk away from doing business with an employee who clearly wanted to continue doing business with him?
Since that meeting, I have spoken with thousands of advisors who also believe that they are "prohibited" from taking rollovers when they are acting in a fiduciary capacity at the plan level. The basis for this view is the U.S. Department of Labor's (DOL) Rollover Opinion 2005-23A, which offers the DOL's interpretation of the "discretionary" authority and influence a fiduciary advisor would have on an employee's decision to roll their assets out of the 401(k) plan and what investment vehicle to use. The DOL essentially believes that you and I, as advisors, would only do what is in our best interest and not the employees!
This is an unfortunate situation for the advisor and the employee seeking the sage and skillful advice from a professional they are comfortable with. Since that conference, I was determined on creating a legitimate solution.
I am happy to announce the solution is now available:
The Fiduciary Advisor's Rollover Toolkit
Created in collaboration with Marcia Wagner, Managing Director at The Wagner Law Group and a recognized ERISA expert,The Fiduciary Advisor's Rollover Toolkit provides the advisor everything they need to successfully build and protect a million dollar rollover business:
- Legal white paper by Marcia Wagner summarizing ERISA's prohibited transaction ruling, the DOL's Rollover Opinion and the Supreme Court decision at the root of the analysis
- Detailed summary of the issues you need to be aware and avoid
- Do's and Don'ts procedural checklist
- Requisite forms to ensure a prudent process when offering rollover services
- Audio with myself and Marcia Wagner talking through the regulatory divide and game plan
- Supporting document files
Please join Marcia and I as we host a free webcast on this topic, Oct. 9th at 1PM ET.
Please click here to register for this webcast or copy and paste
https://www2.gotomeeting.com/register/813030898 into your web browser.
The toolkit is now available for purchase on our website.
I look forward to hearing your feedback on our new tool and your views on this significant issue.
Warmest Regards, Charlie Epstein, The 401k Coach® 
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ERISA Brief
Brokerage Windows after FAB 2012-012R: Yes, Still a Plan Sponsor Concern
by Marcia Wagner,
Managing Director, The Wagner Law Group
The U.S. Department of Labor ("DOL") recently reversed course with regard to controversial guidance [1] it issued to supplement the "Participant Disclosure Regulation" [2]. Financial advisors should understand the Revised FAB position on brokerage windows and be tracking further developments in order to help their plan administrator (typically the plan sponsor) clients fulfill their duties under both the Participant Disclosure Regulation and the broader arch of ERISA.
Original FAB. The Original FAB was most notable by asserting an "affirmative obligation" of the plan sponsor to examine the investment options within the brokerage window and determine whether any should be treated as a designated investment alternative ("DIA"). The retirement industry challenged this expanded fiduciary role, for many reasons.
Revised FAB. The DOL, upon reflection, agreed (for now) and issued Revised FAB without the "affirmative obligation" duty. Revised FAB goes on to provide that the general ERISA duties of prudence and loyalty would nonetheless require consideration of the nature and quality of services provided in connection with the brokerage window, and that a failure to provide any DIA (as a means to avoid the disclosure rules) would "raise questions" under those duties.
The DOL intends to further examine brokerage windows and the related fiduciary obligations of plan sponsors. But how does one proceed in the meantime?
What is a Financial Advisor To Do?
The scope of fiduciary activity with regard to brokerage windows and participant investments has been softened from Original FAB but not obviated entirely. Here are some of the more important things for financial advisors to remember when assisting their plan sponsor clients:
- There is no prohibition against the use of brokerage windows per se. Financial advisors may still work with plans to assist in the implementation of a brokerage window where the plan has determined it would be a prudent investment option for the participants.
- The plan administrator as defined in ERISA Section 3(16) is ultimately responsible for compliance with the participant disclosures, but is not liable where there has been reasonable and good faith reliance on information provided by service providers. Financial advisors must be careful to provide accurate brokerage window information requested by their plan sponsor clients.
- Even though brokerage windows are not subject to the specific DIA disclosure requirements (e.g., benchmarking or performance), financial advisors should be prepared to help with the following general disclosure requirements as found in Revised FAB Q&A 13:
- A general description of the brokerage window that includes how investment instructions are to be provided, special restrictions or limitations if any, how the brokerage window is different from the plan's DIA, and to whom questions may be directed.
- Detailed fee and expense information that is chargeable to the participant's account rather than on a plan-wide basis, including commissions and per-trade charges.
- Preparation of quarterly fee statements that include a description of the related services.
There is no bright line test for determining whether the proper fiduciary review of brokerage accounts has been undertaken, or whether "sufficient information" has been disclosed. It will be a facts and circumstances analysis, case by case. However, financial advisors should be sure to help their plan sponsor clients maintain good documentation of efforts to satisfy the unique rules applicable to brokerage windows.
[1] Field Assistance Bulletin 2012-02 (May 7, 2012) was superseded by Field Assistance Bulletin 2012-02R (July 30, 2012); each in Q & A format. ("Original FAB" and "Revised FAB", respectively).
[2] DOL Regulation 2550.404a-5. Conforming changes were also made to DOL Regulation 2550.404c-1. |
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Marketing Your Unique Practice
There are roughly a quarter of a million financial advisors in the United States, and according to the Bureau of Labor Statistics, this number will continue to climb in the next decade. This growth will make it increasingly difficult to allow your unique practice to shine on its own. Learning how to market your business will not only help you develop prospects and close deals today, but also can help you compete with other financial advisors.
Here are some marketing tips:
- Developing a target profile for prospecting may seem as if it would narrow your chances of attracting new business. However, focusing on a specific industry or profession will help you understand the unique issues that each group faces. This will help you focus your marketing efforts and build your referral system. If you target small businesses, for example, you can demonstrate your expertise by speaking at owner groups and assisting employers who would like to sponsor plans. If you are unsure of your target profile, you should analyze your client database to know where to start.
- Obtaining a professional designation can be especially useful in standing out from the rest of the competitors. Generally, people appreciate the significance of these certifications. There are dozens of different designations available, so research which ones would be most appropriate for you and your practice. They aren't just a string of letters after your name; certifications mean that you've gone above and beyond to educate yourself in a particular area and that you hold yourself accountable to the highest professional standards. Explaining what your designations mean in your marketing materials can be an invaluable asset to growing your practice.
- Using social media is an easy way to attract new clients and develop prospects. Blogging demonstrates your knowledge while boosting your search engine rankings. Optimizing your LinkedIn profile can help potential clients find your practice.
- Providing participants with education meetings can help them achieve Paychecks for Life® and can assist you in acquiring new business by taking on participants as individual clients. For every dollar of retirement revenue you generate, there is 10x ancillary business available. Don't leave money on the table!
- Formulating a unique value proposition is key to successfully branding your business. You must have a constant and consistent message, as well as the same colors and images in all your collateral and marketing materials. This will define who you are and help people recognize you and your firm.
Although the competitive field may be growing, it doesn't mean that you can't continue to expand your business. Knowing how to successfully market yourself is one of the easiest ways to solidify your business and add new clients.
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Take Your Business to the Next Level
Don't delay in creating a more successful 401(k) practice for yourself. Speak to a 401k Coach team member to learn more about the tools, systems and processes we provide that help you bring your business to the next level.
What are you waiting for?
Toll Free: (877)932-6236 x2
info@The401kCoach.com
www.The401kCoach.com
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