This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Principal: Research Reveals Opportunities For Financial Professionals

Financial professionals who want their practices to flourish should deepen their retirement plan knowledge and focus. The greater the financial professional’s retirement plan know-how, the better the plan’s results — and the higher the client ratings. That’s according to retirement plan sponsors surveyed by the Retirement Advisor Council.

“The results give financial professionals a roadmap for growing an efficient and successful practice,” says Tim Minard, senior vice president, the Principal Financial Group ®, one of the sponsors of the study. “First and foremost, plan sponsors value the services they receive from financial professionals. By boosting retirement plan capabilities, financial professionals can more readily demonstrate their value with a track record of successful retirement savings outcomes.”

The study surveyed 407 sponsors of 401(k) or 403(b) plans and found better results among those who worked a financial professional than those who didn’t. Among plan sponsors working with a retirement plan-focused advisor:

  • 95 percent report their advisor relationship is “very beneficial” or a “necessity”
  • 70 percent say at least half of their participants are on track for retirement (that’s compared to just 47 percent of plan sponsors who don’t work with an advisor)
  • 60 percent have had deferral rate increases of five percent or more in the last two years (versus 18 percent of plan sponsors who don’t work with an advisor)

Outcomes can bring income

The survey found that retirement-focused advisors were more likely to make plan design recommendations and provide measurements based on both plan and participant outcomes.

“Nothing can prove value as much as concrete results. Financial professionals who have the resources to help plan sponsors design plans that work have a better shot at being able to show quantifiable, positive outcomes,” said Minard. “This survey reinforces that plan designs focused on boosting participant outcomes can be a real differentiator. That’s why we encourage financial professionals to be advocates for features like automatic enrollment.”

Minard says financial professionals can use the survey results to assess the core services they offer and develop a plan to discuss outcome-based strategies with clients if they are not already doing so.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs