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Advisors! A 401(k) Scenario and Call to Action For Your Clients


Craig Howell has spent the last seven years in business development with Ubiquity Retirement + Savings, a FinTech organization focused on delivering simple, low-cost, retirement savings plans for small businesses and their employees.


September 27, 2013 at 3:43 pm
Retirement News


If you’re reading this post, this probably sounds familiar:

Your small-business owner client doesn’t have a 401(k). But you know s/he needs one – perhaps for the tax savings, or perhaps for the nudge to save for retirement. Maybe both.

Here’s a question – does your client know they need a 401(k) plan? Probably (well, let’s hope so!). Unfortunately, clients don’t necessarily want to go through the perceived hassle or high cost that comes with setting up a plan for their company. I have encountered plenty of business owners who believe Social Security will cover them in retirement, or believe they have “too much” saved already.


That being said, here is your call to action!

1. Persuade your customer solving the problem is worth the cost.

2. Find a 401(k) provider that will offer a quality service at an affordable price (likely as cheap as possible), without diminishing your credibility.

3. Ensure you’ve protected yourself from “fiduciary” responsibility (though the definition to you may be vague) while still ensuring your client has quality investments in place.

4. Potentially assist with enrollment, and help all of the other employees to determine how to invest 2% of salary. Hey, someone’s got to help!

… All while receiving very little compensation from the assets themselves – because there won’t be very much for at least a few years. Does this sound familiar to you, Advisors?


What is your experience?