Forty-one percent of all retirement plans automatically
enroll participants, with that figure being much higher for large plans,
according to the 2015 PLANSPONSOR Defined Contribution Survey. Still, only a
scant 6.5% of plans automatically re-enrolled participants saving below the
default deferral rate and 13% re-enrolled nonparticipating employees. Clearly,
retirement plan sponsors and advisers are missing out on a feature that can
dramatically improve overall plan metrics and individual participant results.
In “The Second Take," we outline many reasons you can share with your
clients to convince them that re-enrollment, particularly on a regular basis,
is the right move. With so few plans employing this strategy, suggesting it
will distinguish your expert guidance from your competitors’.
This year’s PLANADVISER National Conference was particularly
momentous, as it marked our 10th year of publishing the magazine and hosting an
annual meeting to advance the knowledge of the nation’s leading retirement plan
advisers. We present short synopses of 12 of the most
outstanding sessions from this year’s conference, including those covering what
you need to know about the Department of Labor (DOL) fiduciary rule, whether
you are a registered investment adviser (RIA) or a broker/dealer (B/D). Panels
also discussed managed accounts vs. target-date funds (TDFs), as well as
automatic escalation, retirement readiness, health savings accounts (HSAs) and
Peer comparisons aren’t just for your clients but can be
useful for you, too. Our annual PLANADVISER Practice Benchmarking Survey is
designed to show you your competitors’ outlook on fee compression and
disclosure, as well as their areas of growth, fiduciary services, affiliation,
home office support, recordkeepers and third-party administrators (TPAs). This
year, alongside the survey results, the story “Knowing What’s Out There” includes color and insights from several of your peers, as well as Quinn
Keeler, our senior vice president of surveys and research—all quoted in the
In the past, advisers have had to walk a tightrope when
onboarding new clients and expanding staff, asking themselves the key question:
“Which should come first, from a budgetary standpoint?” “Cultivating Your
Practice” presents some of the interesting recent findings that could
help you grow your business. One of the most surprising is that successful
financial advisers today spend less than 20% of their time on investments,
which makes the case for outsourcing this function so they can redirect their
attention to compliance, fiduciary services and marketing.
Exchange-traded funds (ETFs) have been touted for a number
of years as an inexpensive alternative for retirement plan lineups. “ETFs Find
DC Entry via TDFs” (page TK), explains how target-date fund managers
strategically deploy that investment.
Our final department-story in this issue, “Working With
Professional Service Firms," discusses the unique perspective of
doctors, lawyers, accountants, engineers and other professionals who operate as
partners/owners of their business.
Fresh ideas. New ways to think about your business and grow
it. As always, these are our goals for the publication. We hope you enjoy the
issue—and have a happy holiday season!