PLANADVISER - November/December 2018 - 4

intro
Right-Sizing
A
ttorneys and accountants are known
to do an excellent job of billing clients
for their services by the hour. But
Winning Strategies for Retirement Plan Advisers
November-December 2018 | planadviser.com | $30
retirement plan advisers are not always so
diligent about striking a balance between
their time and the fees they charge clients,
particularly in light of the fee compression in
recent years. This issue's cover story, " Smart
Design " (page 18), lays out six ways that you
can ensure you charge the right fees and
that all of your clients are profitable; start by
segmenting your service model and offering
plan sponsors the option to pay for additional
services separately. It's also important
to specify your services in the initial service
agreement, experts say.
Knowing how your peers run their practices, what their top concerns are,
DESIGN
A ground plan for making all clients profi table clients
2018 Practice Benchmarking Survey
and how they expect to grow their businesses are all key benchmarks to help
you run your firm. The 2018 PLANADVISER Practice Benchmarking Survey
(page 30) reveals that fee compression, practice management, adding new
clients, practice differentiation, staffing, government regulation and fiduciary
issues are advisers' biggest concerns. Areas where advisers expect their firm
to grow in the coming year are continued expansion of 401(k) plan clients,
strategic partnerships and fiduciary services.
Highlights from the 2018 PLANADVISER National Conference (PANC),
" Pathways to Plan, Participant and Practice Success, " start on page 24.
PLANADVISER Top 100 advisers and PLANSPONSOR Retirement Plan Advisers
of the Year were amply represented among the moderators and speakers,
who explored topics such as " Plan Committee Excellence, " " Understanding
the Participant Mind " and " The Future of Retirement Advising. " Additionally,
" Plan Sponsors [Told] All " about what they value in an adviser partner.
" Weathering Audits " (page 38) lays out how advisers can help their sponsor
clients prepare for, and sail through, an audit by the Department of Labor (DOL).
This is critical information, as the DOL has not only expanded the scope of its
examinations of plan sponsors but also extended its purview into the operations
of retirement plan advisory practices. The piece details how advisers can
play a vital role in guiding sponsors on their fiduciary responsibilities.
Related to this is the fact that advisers need fiduciary liability insurance.
" Protection for Your Practice " (page 42) discusses the challenges advisers face,
misconceptions about coverage, the amount of coverage a retirement plan
adviser should have, and the factors advisers should consider when selecting
a carrier. It is important to note that advisers need insurance of their own,
as client policies don't cover advisers or third parties. Additionally, fiduciary
insurance may be unavailable as a rider to directors' and officers' (D&O) policies
and need to be purchased as a stand-alone. Sources recommend selecting
a carrier that has operated in this space for a while and is familiar with the
types of lawsuits and claims commonly levied.
Many experts say, just as one should diversify his portfolio, he should diversify
his tax exposure. " The Case for Roths " (page 44) points out the benefits of
these 401(k)s particularly among younger participants whose taxes will likely
increase in the years ahead as their earning power rises. Noteworthy is that
saving the maximum-$18,000, this year-in a pretax 401(k) would be $24,000
in a Roth 401(k) because of the tax advantages. -Lee Barney, Managing Editor
editor-in-chief: Alison Cooke Mintzer
Alison.Mintzer@strategic-i.com
creative director: SooJin Chun Buzelli, svp
SooJin.Buzelli@strategic-i.com
managing editor: Lee Barney
Lee.Barney@strategic-i.com
managing editor, planadviser.com: John Manganaro
John.Manganaro@strategic-i.com
editorial staff: Judy Faust Hartnett, Rebecca Moore,
Amanda Umpierrez, Karen Wittwer
contributors: John Keefe, Judy Ward
surveys & research: Quinn Keeler, svp;
Brian O'Keefe, Jackie Scott
design & production: Donna Bien-Aimé,
Lynn Connelly, Clarissa Liu, Joy Liu
design contributor: Cherese Rambaldi
art contributors: Tim Bower, Jun Cen (cover),
Leo Espinosa, Lisk Feng, Matt Kalinowski, Cecile Kim,
Marion Kamper, Linda Liu, Hayden Maynard,
Katherine Streeter, JooHee Yoon
head of media sales: Katie Bacon, vp
Katie.Bacon@strategic-i.com
online and digital products: Paul Zampitella, vp
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advertising sales: Meighan McGowan, Bill Murray,
Lisa Reilly
global sales administrator: Anthony Groccia
conferences: Carol Popkins, vp; Katie Campbell,
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Bahi, Ruth Fissaha, Doreen Fucci, Kristin Keeler,
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Widom
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reprints: Michelle Judkins 203-595-3276
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chief content officer: Tony White
PLANADVISER (ISSN 1935-9098) is published
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PLANADVISER - November/December 2018

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