Starting Blocks?
I always find the concept of a new year interesting.
Reported by Alison Cooke Mintzer
In any event, the December to January switch is a call to renew and look forward and I know, for many, saying good bye to 2009 was nearly as exciting as watching 2008 disappear. Yes, the markets did well and many participants, provided they stayed invested, have made up much of the ground lost during the market meltdown (though much of that gap closure was due to contributions, so let’s not get too excited). However, many seem to forget that we still have a dismal “retirement readiness” score as an industry, and more must be done to help participants reach some level of success there. As an adviser, it is tempting to make resolutions about your business—how it will grow, how you will manage it, and/or that growth. However, you also should be helping your plan sponsor clients and plan participants make their own retirement resolutions—resolutions that, it should be noted, can also affect and influence your business aspirations.
Whatever your current state of resolution, our cover story this issue, “Suiting Up,” discusses fiduciary status and why it might no longer be enough just to be a good adviser. For many, that remains a controversial position and, as you’ll see in the article, there are a number of advisers who believe they are fiduciaries—but don’t plan on making a point of that to their clients. Yet, is there room for advisers whose services don’t make them a fiduciary? If everyone really is heading down that path, is it really still a competitive advantage? For those of you who remain unsure about your fiduciary status, we have a convenient evaluation set that can help you figure out where you stand (see “Pop Quiz”).
Of course, 2009 saw the continuation of one of the larger events of 2008: the acquisition of Merrill Lynch by Bank of America. In “Taking the Bull by the Horns,” we discuss the advisory and retirement plan ramifications of this “shotgun” marriage. Although the move initially received much negative press, some bright spots seem to be emerging. See what you think.
One way in which advisers might have been resolving to become more engaged with plan participants was through the investment advice provisions set forth in the Pension Protection Act, and detailed under the Bush Administration. Well, after much delay of those rules, last fall, the Obama Administration recalled them, noting that new rules would be forthcoming. For those of you tracking those changes, “Putting out Fires with Gasoline” discusses why the Obama DoL rejected them and what seems likely to emerge in the upcoming revised regulations.
Another aspect of retirement readiness that we have written about a few times here is the need to connect with various participant segments. In “Lost in Translation,” we discuss the specific needs of the Hispanic community, and what initiatives plan advisers and their plan sponsor clients can take to better encourage that demographic group to save for retirement.
For those of you capturing rollovers from plan participants, new Fiduciary Fitness columnist, Marcia Wagner gives you some insights in the first of a two-part column discussing the Department of Labor’s view on cross-selling and how that might affect your business.
This issue, we also introduce a new section called Learner’s Permit where we will provide insights about how advisers can use technology to further their practices. In our first edition, we discuss Webcasts, and offer some guidance about the key considerations in selecting a vendor, determining how to use this technology, and the pros and cons of adding them to your “distribution” channels.
Additionally, we also have numerous initiatives for our Web site in 2010 as we continue to build out our online capabilities. I invite those who are interested in contributing a column, a series of columns, or a blog to PLANADVISER.com to let me know. We will continue to bring you the best retirement plan and advisory news possible, but really need your help to broaden the opinion and community areas of the site. I look forward to hearing from you.