Your value in motion
Even in the small-to-midsize business sector, plan sponsors are realizing they can't do it all. They need a partner to help share the load and put their retirement plan on par with those offered by larger companies. What's more, they understand that a quality plan can serve as an important tool to help attract and retain the level of talent often drawn to big corporations with deeper pockets. The advice you give can be categorized into three distinct areas:
Behavioral coaching. You encourage your clients not to give in to emotion. While market turbulence may make them weak in the knees, you remind them of their long-term goals and the investment strategy they developed—with your assistance—to get their company's retirement plan through a range of fluctuation.
Portfolio construction. Your clients' employees look forward to retiring with confidence. That's why it's so important that plan sponsors have an ally adept at building and maintaining a plan with an appropriate mix of broadly diversified stock and bond funds—in addition to cash investments. Your ability to structure a portfolio that is cost-effective, tax-efficient, and focused on total returns is key to the plan's overall success.
Wealth management. Your depth of expertise really comes into play when offering advice on topics such as tax planning, estate planning, and retirement spending. For example, your clients rely on you to incorporate tax-smart investment strategies into the fund selection and allocation processes—all to help manage risk and potentially boost performance.
Your role in financial wellness
Financial advisors are being tasked with evaluating the effectiveness and costs of infusing financial wellness into the retirement plans they've helped design. Financial wellness isn't some marketing ploy. It's an aspirational choice to deliver a host of life-enhancing benefits and services—beyond the basic plan offering—to participants. These may include programs that focus on debt management, emergency savings, retirement planning, household budgeting, health care costs, college planning, and student loan payoff strategies.
And properly implementing this directive requires a wealth of advice from trusted financial advisors.
Below is a quick look at our advice framework highlighting the components of the value you can offer, including those contributions to your clients' employees' overall financial well-being.
Our value framework for advice