For advisors and clients, consolidating retirement plans into a single account can be an important step in developing and executing a wealth management strategy. Not only do former employees get the advantage of potentially lower fees in an IRA, there are often more investment options. And importantly there can be great value in providing a holistic view of the client’s assets across accounts, which can be more easily communicated when disparate accounts are consolidate.
For wealth advisors, finding 401k rollover leads can be hit or miss, but there are techniques to improve your hit rate. Based on our research and work with advisors, targeting relationships with midsize or small retirement plans with high proportions of retirees will often yield great results when trying to surface rollover opportunities. Often these plan administrators of mid-size and smaller plans are happy to have former employees “off the books”; and therefore the employers can serve as lead and referral sources for 401k rollovers.
A36 Analytics’ retirement plan database includes key indicators on the number of retirees within each plan. Additionally, our “Retirement Hot Prospect Indicators” identify plans which have a disproportionately high share of plan members that are retirees. An excellent strategy for a retirement and wealth advisor is to develop relationships with these employer benefit plan administrators to serve as a potential resource for employees who might need more holistic financial planning and advising . Our clients have found doing this consistently will generate not only rollover leads but also a significant number of full wealth management clients.