The Kieckhefer Group, RBC Wealth Management

The Kieckhefer Group, founded by Rob Kieckhefer in 2001, brings something relatively uncommon to their clients: the ability to offer fee-for-service and RIA services within a wirehouse structure, which the team offers through RBC Wealth Management’s RIA contract. “Although RBC did require us to complete extra training, RBC has been helpful in understanding the team’s desire to offer such a fee structure to clients,” Kieckhefer says. The firm has been responsive to the differences between an RIA practice for wealth management clients and retirement plan clients. For example, one retirement plan client did not like the generic RIA agreement and helped the Kieckhefer Group and RBC rewrite and customize it for retirement plans. “Instead of causing consternation, the suggestions were very well received,” Janet Ganong says. Attorneys on both sides got involved and ended up customizing and drafting a model RIA agreement that retirement plan advisers at RBC are able to use now.

Although the RIA model is being used currently by only about 25% of the group’s current clients (the majority are still using 12b-1 or commissions), Ganong predicts it will grow, especially as the environment continues to move toward more disclosure of fees. Clients currently are given the option of how to pay for the team’s services. “We try to accommodate them,” she says.

The group has seen on increased demand for converting accumulated wealth into retirement income. This is Megan Madigan’s primary focus; she joined the team to meet the increasing needs of the individual 401(k) participant. The team is offering both wealth management and general education to plan participants, including many one-on-one meetings. “If you are older than 50 and want to start looking at options, or if you are younger and want to see whether you are on track,” the team can help, Kieckhefer continues. This service is offered to everyone and not just key employees. “We enjoy dealing with the rank and file,” he notes.

In the last year, Kieckhefer says, the team has come across some unique plan design opportunities. Plan sponsors have serious pension concerns they want to address, in light of funding rules and market declines, he comments. “Plan sponsors are looking to get out from under their unfunded liability,” Kieckhefer says, and “they want something a little different, more creative” that still helps their participants prepare for retirement.

For example, two small companies in Wisconsin that were unionized were originally happy to be part of the union pension plan but, now, company solvency is threatened by the pension’s funding status. For both companies, one part of the Teamster pension and one a UAW plan, The Kieckhefer Group created 401(k) plans, to replace (in the case of a frozen plan) or complement the pension. Some of those plans include a substantial match and changed policies so that collective bargaining employees are allowed to participate in the plan.

The opportunity to help companies through plan design intrigues the team. “When we see something a little unique,” Ganong says, “we ask, “How can we help?” and, after we determine objectives, we try to find solutions.” Although the pension plan supplements are the most significant the group is working on, other solutions include automatic enrollment and deferral increases, as well as Roth features.

Photo by Kevin Miyazaki