In a recent TD Ameritrade Institutional survey 5, most RIAs agreed that advising on retirement plans would be a welcome addition to their business. Eight out of 10 advisors predicted RIAs as a group would expand their share of the retirement plan market.Yet advisors also cited obstacles to entering the business – the administrative groundwork needed to deliver these services and the additional layers of regulation. Some advisors said they lacked time and resources, or felt they needed more education about the business. Just under half of advisors in the survey said they planned to pursue retirement plan business this year. The TD Ameritrade Retirement Plan is designed to address those concerns and help more advisors take the next step. It streamlines the process of establishing and managing a retirement plan business by offering a single package for all recordkeeping, custody and plan administration. RIAs will get the TD Ameritrade Retirement Plan Playbook, which offers step-by-step guidance on how to set up a retirement plan business, approach prospects and service clients. The program offers account management tools and materials for advisors, enrollment and education support for employers, as well as planning tools and IRA rollover assistance for plan participants. Advisors still control their clients’ investment options thanks to TD Ameritrade Trust Company’s open-architecture platform, with its unbundled access to more than 13,000 mutual funds and over 1,000 ETFs, as well as access to TD Ameritrade’s self-directed brokerage platform. The TD Ameritrade retirement Plan will complement the current service model, in which TD Ameritrade Trust Company matches RIAs with more than 80 leading independent TPA/recordkeepers. TD Ameritrade Institutional will continue to provide RIAs with choice and flexibility by offering a range of retirement plan solutions to meet the needs of plan sponsors and participants. Serving the retirement plan market offers several benefits to RIAs, including a chance to expand relationships with clients and attract prospects. Steady flows of retirement assets can provide balance to a firm’s investment management business, which may shrink in down markets or see withdrawals Over the past five years, retirement plan assets grew three times as fast as non-retirement plan assets. 2 “Retirement plans offer a tremendous opportunity for RIAs to diversify their revenue by attracting investors who add money every two weeks, in good markets and bad,” said Schweiss.
1 TD Ameritrade Trust Company, a non-depository trust company, provides custody, directed trustee, recordkeeping, plan design support and plan administration services and is not a member of FINRA/SIPC/ NFA. Brokerage services are provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade, Inc., and TD Ameritrade Trust Company are separate but affiliated subsidiaries of TD Ameritrade Holding Corporation (“TD Ameritrade”).2 TD Ameritrade Institutional, a division of TD Ameritrade, Inc., provides business development support, guidance and tools to independent registered investment advisors. 3 Investment Company Institute, “Retirement Assets Total $21.9 Trillion in Third Quarter 2013,” Jan. 10, 2014, http://www.ici.org/research/stats/retirement/ci.ret_13_q3.print 4 Cerulli Associates, Cerulli Quantitative Update: U.S. Retirement Markets 2012 (Subscription required) 5 TD Ameritrade Institutional RIA Sentiment Survey – Retirement Plan Advice Market, November 2013. About TD Ameritrade Institutional TD Ameritrade Institutional, a division of TD Ameritrade, Inc., is a leading provider of comprehensive brokerage and custody services to more than 4,500 fee-based, independent registered investment advisors (RIAs) and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows advisors to run their practices more efficiently and optimize time with clients. About TD Ameritrade Holding Corporation Millions of investors and independent investment advisors have turned to TD Ameritrade’s (NYSE: AMTD) technology, people and education to help make investing and trading easier. Our clients want to take control and we help them decide how -- online, over the phone, in a branch or with an independent investment advisor. We’ve been bringing Wall Street to Main Street for more than 36 years. An official sponsor of the 2014 U.S. Olympic Team, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information. Custody, directed trustee, recordkeeping, plan design support and plan administration are provided by TD Ameritrade Trust Company, a non-depository trust company. Brokerage services are provided by TD Ameritrade, Inc., member FINRA /SIPC /NFA. TD Ameritrade Trust Company and TD Ameritrade, Inc. are separate but affiliated subsidiaries of TD Ameritrade Holding Corporation (“TD Ameritrade”). Business development support, guidance and tools are provided to independent registered investment advisors by TD Ameritrade Institutional, a division of TD Ameritrade, Inc.
Survey MethodologyResults are based on a survey conducted by Maritz, Inc. on behalf of TD Ameritrade Institutional. 300 RIAs participated in a telephone survey Nov. 4 through Nov. 15, 2013. RIAs who custody with TD Ameritrade Institutional, as well as other independent RIAs from across the United States, were asked to share their views on the retirement plan advice market. The margin of error is ±5.6%. This means that in just over one case out of 20, survey results based on 300 respondents will differ by no more than 5.6 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible RIAs. Maritz, Inc. and TD Ameritrade, Inc. are separate, unaffiliated companies and are not responsible for each other's products and services .