The plan is designed to meet the varied challenges and demands that business owners face in providing simple but sophisticated retirement plan choices to their employees. Pointing out that Americans already have increasingly low confidence in their retirement readiness, Michael Kim, senior vice president, Genworth Wealth Management, said that the plan allows advisers to offer business owners a compelling solution to help them attract and retain valuable employees.
“The retirement plan market is steadily growing, and the vast majority of plans are small- to mid-size—the sweet spot for advisers,” Kim said. “By expanding into plan services, advisers may see opportunities open up for financial planning services and IRA rollovers.”
Advisers can offer the following to small-business owner clients:
A range of choice to participants, from low-cost exchange-traded funds (ETFs) to target-risk turnkey investment solutions;
Shared fiduciary responsibility with Genworth Wealth Management, the Employee Retirement Income Security Act (ERISA) Section 3(38) investment manager that assumes liability for the investment selections and monitoring; and
A team of specialists to support every aspect of the plan.
“Broker/dealers we work with are finding this solution attractive because of the investment manager fiduciary responsibility delegation as well as the integrated offering,” said David Pologe, director of strategic accounts for Genworth Wealth Management.
“We’ve integrated the third party-administrator and recordkeeper so advisers and their clients have a single point of contact for plan administration,” Kim said. “Given how time-pressed advisers are, this was important in building our offering.”
More information is available at Genworth’s site.