Jun 21, 2012 --- Being overly accommodating to clients seems like a logical way for plan advisers to run a business—but sometimes it can actually endanger it. ---
Kevin Bishopp, Russell Investments’ director of Advisor Growth Strategies, spoke with PLANADVISER about several situations in which advisers are better off just saying no.
If a Client Does Not Take Interest
A plan adviser should be wary of a plan sponsor who does not communicate effectively with participants and does not take a real interest in the retirement plan. “It might be another piece of business, but there may not be a good brand,” Bishopp said. “It’s not going to help your business long term.”
A plan adviser should be able to gauge quickly whether a plan sponsor is a good fit. Particularly during the request for proposal (RFP) process, advisers will discover a plan sponsor’s attitude toward offering a benefit to participants, and whether the retirement plan is a priority.
Bishopp suggested advisers contemplate the employees’ attitudes toward the plan sponsor as it relates to the plan. Is it mistrust or skepticism? If so, perhaps the plan sponsor is not the right fit for the adviser.