Drawing Attention
Alison Cooke Mintzer (photo by Chris Ramirez)
Every year at our annual awards dinner, where we bring together some of the most noteworthy plan sponsors, retirement plan advisers, and investment and recordkeeping providers in our industry, I comment on the importance of our contribution to the retirement success of Americans. It’s an evening when we all put corporate goals aside to celebrate the industry’s, and retirement plans’, success.
This is one of my favorite events all year, because I truly believe in the group of people who gather. They represent an amazing network of retirement plan professionals, programs and companies that have spurred real innovation. They have led the effort to develop more efficient plan designs and administration, helped to grow assets and, ultimately, improved participant outcomes.
However, this story gets lost all too often, when our segment of financial services gets lumped in with the bigger behemoth industry—and its negative image overall. In 2016, the American Association of Individual Investors (AAII) asked 1,904 people, “How much do you trust the financial services industry to do what is in the best interest of its clients?” A whopping 65% of survey respondents said they “mistrust a lot” or “mistrust a little.” The same year, Deloitte released research finding only 15% of consumers believe mutual funds, investment advisers/brokers or financial advisers to be highly trustworthy.
This perception is contributing to the graying of adviser firms. Last year, the average age of financial advisers was 50—a number that has increased year-over-year, according to global consulting firm EY. Less than one-quarter (22%) are under 40 and only 5%, in their 20s. Our industry needs new blood, but those negative perceptions may discourage young people from joining it.
Millennials in particular want a career that contributes to the greater good. Two years ago, a poll conducted by Morning Consult for Fortune found that nearly two-thirds in that age group said they’d prefer working for a company that makes cash contributions to charity or has other philanthropic programs. For this generation, success is not just about money.
But for retirement plan advisers, it’s never just about money. One of my favorite questions during our interviews for Retirement Plan Adviser of the Year (RPAY) is how did that individual get into the business, and why? It’s hard to quantify their passion and genuine interest in building better participant outcomes!
Lately, I’ve noticed a new thread weaving through advisers’ stories as we talk about their passions and endeavors: philanthropy. Much of what I hear hasn’t been publicized. I’ll speak to one adviser who has a charitable foundation as a cornerstone of his practice who references another adviser who has decided to do something in her local community, who, in turn, mentions another adviser … You get the picture. The culture that these advisers are building speaks to why people join this business—to help people improve their lives.
The fact that this giving has been a quiet trend, I think, soft-pedals its importance. The work being done speaks volumes about the value of our industry—one that Millennials, and others, should be excited to join.
That’s where we at PLANADVISER come in. I am pleased to roll out a new initiative that I think is long overdue: Advisers Giving Back.
This recognition is not a contest. There will be no “winners” here—it’s not for us to say one person’s or group’s initiatives are more or less worthy than another’s.
Each month, on PLANADVISER’s website, we’ll roll out a profile of an adviser or advisory practice that has undertaken some philanthropic endeavor. It might be a local community service event, or it might be an outreach with a global footprint. It could also be volunteering or fundraising—we won’t restrict recognition to only social action.
Besides to highlight the good being done by retirement plan advisers and to attract a new generation, we hope these stories will help those of you who have yet to figure out the role of corporate responsibility or philanthropy in your practice. We hope they’ll give you insights for embracing such initiatives in your culture.
If anyone needs another reason to try philanthropy: A recent analysis of 350,000 surveys taken by organizations certified by Great Place to Work found a connection between organizational giving and employee behaviors. Employees who said their employers made a positive impact in the world were more likely to: give extra to get the work done; stay with an organization for the long haul; and look forward to coming to work. All things employers appreciate.
We will begin to profile these advisers on PLANADVISER.com this month, and I encourage advisers to contact me about what they—or their peers—are doing in this area. Submissions describing the initiatives should include information about who in the adviser practice is participating, the location and dates of volunteerism/fundraising/etc., details about the group benefiting from the adviser’s work, and anything else that’s relevant. Photos are welcome, too!