Through the Looking Glass
Well, the year may have ended, but the stresses in the industry clearly have not—and, despite plenty of surveys showing optimism, we’re clearly not out of the woods yet.
This issue’s cover story, “The World Turned Upside Down?,” discusses how the current market crisis has shaken both wirehouses and independents, and what broker/dealers must do to remain competitive in this environment. Is this the dawning of a new era for the registered investment adviser? Are you considering a change? Or will the stresses of creating your own business keep you in place at your broker/dealer?
Speaking of adviser choices, the judges have spoken, and the PLANSPONSOR Retirement Plan Adviser and Adviser Team of the Year award finalists have been selected. They come from both wirehouses and independent shops and are located all across the nation (though this year’s group has a distinct bicoastal flavor). Meet the five individual adviser finalists and the five finalist teams here. Like last year, we will announce the winners, and recognize the finalists at the annual PLANSPONSOR/PLANADVISER Awards for Excellence Dinner in New York on April 2 (more information about the dinner can be found in Note Worthy).
A key to keeping a retirement plan competitive is knowing how it compares with other programs—and you learn how it compares by benchmarking it against comparable programs. Things such as the types of investment option choices and automatic enrollment are just some of the trends that can vary considerably among plan size, and what might seem competitive in the whole marketplace might not be so when that marketplace is narrowed. Often, plan elements vary by plan size, and an awareness of these types of trends can help provide an accurate and meaningful point of comparison. In “Size Matters,” you can see what data points vary the most among plan size, and what is the same, no matter what the size of plan.
With new regulations going into effect this year, many 403(b) plan sponsors are going to be dealing with some significant program changes—and that could represent a lucrative business opportunity for retirement plan advisers. However, there are several distinct types of 403(b) plans and plan sponsors, and significant operational differences in plan designs that advisers may not be familiar with, nor should they assume that they can simply import their successful 401(k) business models to this new market. In a series of articles, we will inform you of the three main 403(b) market segments and what being a plan adviser means for each; we begin by discussing K-12 plans (“Reform School“).
Another area that advisers routinely cite as an area of business growth is rollovers and retirement income advising. In this issue, we focus on the managed payout fund. An alternative to an annuity, these products provide a dividend-like payout on a regular basis. What are they and who are these right for? What are the differences in current offerings? Do you want to be discussing them with plan sponsors and participants? You can learn more in “Funds Move to the Next Level.”
Despite the chaos of the last few months, I wish all of you a successful 2009, filled with business growth and accomplishments. We will continue to provide you with information and tools that can help you achieve your goals.