401(k) Specialist Issue 2 - 2023 - 44

401(k) CLOSE
I Have Seen the Enemy and It Is Us?
By Terry Morgan
I HAD THE pleasure of attending my 20th
NAPA 401(k) Summit in April in San Diego.
It's an awesome conference for advisors
that wish to learn how to be a great
retirement plan advisor. I love networking
with other advisors to learn what they do
to get more business and provide the best
possible advice and education to the 401(k)
committee and participants.
Ok401k's goal has always been to focus
on the little guy in the many 401(k) plans
I serve over the years. These are the great
unwashed who are struggling to put in $25
a paycheck and might have $15,000 in their
401(k). I love taking their calls or emails and
coaching them on being invested properly
and not touching that pot of money until
retirement. The balance in their 401(k) is
probably the largest amount of cash they
have ever seen. I believe these are the four
sacred duties good 401(k) advisors should
be providing to their clients: Increase participation,
increase deferrals, improve quality of
investing, and most all... the advisor personally
signs on as a fiduciary to the plan.
These are measurable outcomes that any
plan sponsor can use to evaluate the effectiveness
of their advisor. This year I wish
to add one more " sacred duty " an advisor
must provide to their 401(k) plan clients:
Talk to the little people in the 401(k) plan.
Unfortunately, over the years I have
detected among many advisors I network
with a selfish attitude toward the little
participant contributing to the plan: They
won't talk to the participant unless they
are the owner or executive that hired
them. These are your big RIAs who won't
go out the door and talk to an employer
unless they have at least $10 million in the
401(k) or your typical Registered Rep who
gladly takes on startup plans to use as a
back-door entry into the owner's suite to
do financial planning.
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ISSUE 2 2023 | 401kSpecialist.com
I saw that in action at NAPA. I always ask
every advisor I speak to at conferences,
" How do you serve the 401(k) participants
in your plans? " Unfortunately, I find many
very successful RIAs and Registered Reps
more than ever saying they turn everyone
over that is not on the 401(k) committee to
the toll-free number or website unless they
are an owner or executive.
No wonder Brian Graff, CEO of the American
Retirement Association and Executive
Director of NAPA, at his opening address in
San Diego warned about government intervention
into the retirement plan business.
The biggest hot-button issue was over
" For me, taking a
call from the little
guy is a badge of
honor. I won't make
as much money, but
I feel like I am doing
something better. "
I have for 20 years heard from many of
these very successful advisors who have a
hell of a lot more money than I do under
management who typically say they won't
talk to the little guy struggling to put in
$25 per paycheck. Really? And they call
themselves 401(k) advisors?
It's a successful concept the fast-food
industry takes: VOLUME over quality. Yes,
you make a lot more money in this model
as compared to my " boutique " process of
being a 401(k) advisor. For me taking a call
from the little guy is a badge of honor. I
won't make as much money, but I feel like I
am doing something better.
the battle over the retirement system,
where Graff explained to the packed room
of Summit attendees that a well-financed
think tank has been pushing a proposal for
a federal retirement savings program run by
the Treasury Department modeled after the
Thrift Savings Plan.
According to Graff, " A big reason incentivizing
the interest in a government-run
solution is the ongoing coverage gap of
60 million people that exists. " Yes, he is
addressing employers that don't have a
retirement plan but I will also submit to
you that as investment advisors and educators
we are not taking care of the whole
body in the delivery of quality 401(k) plans
and helping American's have a successful
retirement.
We unfortunately are just focusing on
one part of the body and that is not holistic
enough to have a healthy 401(k) plan. And,
that my friends is the heart of the problem.
Are the little people getting the care and
advice that the owners and executives are
getting these days? I have seen the enemy
and it may be us?
Terrence Morgan, AIF, CPFA, is President and CEO of
Ok401k, Inc., in Oklahoma City, Okla.

https://401kspecialistmag.com/brian-graff-at-napa-401k-summit-years-long-battle-beginning-over-future-of-americas-retirement-plan-system/ https://401kspecialistmag.com/eigs-john-lettieri-refutes-ara-claims-of-proposed-bills-challenge-to-private-retirement-plan-system/ https://401kspecialistmag.com/eigs-john-lettieri-refutes-ara-claims-of-proposed-bills-challenge-to-private-retirement-plan-system/ https://www.ok401k.com/ http://www.401kSpecialist.com

401(k) Specialist Issue 2 - 2023

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