Deals & People September 9, 2010

Bukaty Beefs Up Wealth Management Focus with Acquisition

 Leawood, Kansas-based Bukaty Companies has merged with Kansas City-based wealth management pioneer The O’Renick Companies.
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According to an announcement, the move will increase the strength and depth of Bukaty’s wealth management area.  Vincent Morris, vice president and an owner of Bukaty’s Retirement Plan Services Division, made the announcement of the merger of the firm founded by Kenneth O’Renick in 1968. Terms of the deal were not disclosed. 

“The O’Renick Companies is without a doubt one of the most respected wealth management firms in the country,” said Morris. “The opportunity for us to offer our clients the wealth management expertise they provide will be invaluable to us as we look to the future. This will give us huge capabilities in the high net worth investment management arena.” 

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According to the announcement, O’Renick has been in wealth management for 42 years and formed the company based on a dedication to the preservation and growth of assets for high-income individuals, trusts, corporations and qualified retirement plans. He searched for seven years to find a company that could offer his clients enhanced services while also sharing the cultural values of his firm.  He found that firm in Bukaty Companies, according to the announcement. 

“We have had some clients for 42 years and many more for 30 and 40 years, so it was a very deliberate journey to find the right company that shared our values,” said O’Renick.  “As we join with Bukaty Companies our goal is to continue to preserve and protect the wealth for all our clients.  This is a merger of strengths and is a win-win for us and our clients.” 

Morris said he had been searching for a partner to provide additional wealth management services for Bukaty Companies clients for a long time. “The O’Renick team brings a similar culture, respect for the client and a commitment to service that are the hallmarks of what we offer our clients,” he says. “We expect this to be a seamless transition for both firms and our clients.” 

Founded in 1991 by Mike Bukaty, Bukaty Companies is one of the Kansas City area’s largest employee benefit and insurance consulting firms. From its early beginnings as a three-person office, the business has grown to nearly 100 employees representing more than 2,500 clients, according to the firm.  Bukaty Companies services include: Employee Benefits; Retirement Planning; Wealth Management; Benefits Administration; Human Resource Consulting; Payroll Administration; Property & Casualty; Bonding; and Individual Health and Life.  

More information is available at http://www.bukaty.com/

Perspectives September 9, 2010

Perspective: How to Drive Retirement Plan Participation at Small Businesses

Strategies to increase participation rates and build your business.
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The third in a series of articles about working with small-business retirement plans 

Selling retirement plans to small businesses can be an effective way to generate new business and an ongoing revenue stream. Yet, many advisers underestimate the need their clients’ employees have for ongoing support and guidance to make informed investment decisions that will ensure they maximize their plan’s benefits.

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A Lack of Confidence 

Given the gyrations in the financial market in recent years, investor confidence levels are on shaky ground. Looking at the results of a recent survey of employers, 54%  said they are less confident about their employees’ ability to save enough for a secure retirement. In addition, only 18% were very confident that their employees would put aside enough money for retirement.  Yet, at the same time, many employers are wary of providing investment advice, as they fear it could trigger lawsuits if their employees lose money.

Opportunities for Advisers

Advisers can play a key role in helping plan participants make informed investment decisions. For example, after closing a plan sale, advisers should take an active role in enrollment meetings to explain the plan’s features and benefits. Many employees are unaware of standard provisions such as automatic enrollment and automatic yearly percentage increases which can assist employees to maximize their retirement savings. Not only can this lead to higher participant rates, it also allows advisers to cross-sell their financial planning services for an employee’s non-retirement assets.  Advisers can also host periodic educational meetings with employees, which may result in higher contribution amounts.

Leverage the Support Offered by Plan Providers

Of course, with a limited amount of time, some advisers may not be able to personally devote significant resources to assist plan participants. Fortunately, advisers can team up with a plan provider that offers regular communications and educational programs. These may include the following:

  • Educational Seminars: Many plan sponsors have “libraries” of seminars that advisers can present, or that can be accessed by employees online. These may include topics such as asset allocation, portfolio diversification, international investing and market volatility.
  • One-On-One Support: Certain plan sponsors have teams of nationwide education specialists who can conduct periodic enrollment and educational meetings, either onsite or in a webinar format.
  • Newsletters: Most plan sponsors distribute newsletters to participants, typically on a quarterly basis. These newsletters often include updated plan information, as well as financial planning articles.
  • Online Information: Plan participant websites often allow employees to make certain account transactions, research their investment options, and learn about timely issues related to the financial markets.  
  • Advice and Guidance: The plan sponsor may team up with a third party vendor that provides plan participants with investment “advice” and “guidance.” Investment advice is personalized in nature (i.e., managed accounts for a minimal fee), whereas guidance is more generic (i.e., free sample asset allocation pie charts for employees in different age groups). These vendors often are named as plan fiduciaries.

Regardless of whether the adviser uses a hands-on approach or serves in more of an advisory role, it’s imperative to have a well thought out plan to help participants make informed investment decisions. Not only will this increase participation rates, it will also help the adviser’s business-owner clients meet their fiduciary requirements.

The first article in this series related to small-company retirement plans, online here, discussed how advisers can educate employers about the importance of offering a plan and the most popular plan options for small businesses. The second article explained strategies to keep small businesses from eliminating their retirement plan. Click here to read this article. 

John Guido is the Division Vice President, Marketing for ADP Retirement Service. In this capacity, he is responsible for oversight of ADP’s product and strategic initiatives in the retirement space. Prior to joining ADP, Guido held senior level marketing and sales roles at Metlife and Standard and Poor’s.

ADP Broker-Dealer, Inc., ADP, Inc. and their affiliates do not offer investment, tax or legal advice, and nothing in this article is intended to be, nor should be construed as, advice or a recommendation for a particular situation.  Please have your clients consult with their own advisor for such advice. 

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