PLANADVISER - November/December 2020 - 25

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2020 PLANADVISER Practice Benchmarking Survey
18 | planadviser.com November-December 2020
his firm gave webinars to inform clients about the markets'
reactions to COVID-19, as well as to explain the Paycheck
Protection Program (PPP) and to help with decisions about
suspending their retirement plan match. " We tried to think
holistically about their businesses, not just their plan, " he
said. Not only did he retain clients, but he won new business
with this approach, he said.
The survey found a smaller percentage of advisers offering
individual advice or wealth services-74% after that number
had increased to 80% from 62% over the prior two years.
Advice does look different during the pandemic. Tristan
Talley, vice president, wealth management, Bukaty Companies
Financial Services, a DigitalOne company, in Kansas City,
Missouri, speaking on the same panel, said six individuals
on his team would go out daily for on-site visits at sponsor
companies, but they moved to virtual meetings in March.
" We also have weekly Zoom meetings for participants and
plan sponsors, " Talley noted. " We used to do webinars all the
time, but they were usually presentations without participant
interaction. Zoom changed that. We get to see participants,
and they interact [with us]. " When participants get involved,
he says, it produces better outcomes.
While Zoom fatigue has begun to set in for some, the
popularity of videoconferencing has generally taken off in the
Respondent Profile
Total Retirement Plan Assets Under Advisement
Avg # of Office Locations
≤ 2
<$300mm
$300mm - $500mm
>$500mm - $1b
>$1b - $2b
>$2b - $3b
>$3b - $5b
>$5b - $15b
>$15b
3-5
6+
advising community. Of six technology solutions commonly
used by advisers, 98% of survey respondents used that tool.
" Our quarterly meetings with clients have gone really
well, " said Long. " In fact, many have said we can continue for
each quarterly meeting. "
To indicate how important technology/information
technology (IT) support has become, 78% of broker/dealers
(B/Ds) considered it a primary benefit this year, up from
68%. For many advisers who have had to adapt their practices
to manage remote teams and clients, that support, in
2020, may have been a gamechanger. -PA
METHODOLOGY. This past October, PLANADVISER invited advisers
to respond to a survey pertaining to their qualified retirement
plan practice. The questionnaire explored the strategies they use
to manage their retirement business and was part of a larger
effort to understand adviser attitudes and preferences, including
their assessments of investment managers, mutual funds and
defined contribution (DC) plan providers. That effort was published
separately, in our September-October issue. By the survey's close,
PLANADVISER had received responses from 195 teams/practices,
which collectively advise over 40,000 employer-sponsored
retirement plans and represent $1.64 trillion in retirement assets. For
more information and for additional research available, please
contact surveys@issmediasolutions.com.
A
2020 PLANADVISER Practice Benchmarking Survey
REFERENC
OF
Boosting
your industry
acumen
with the help
of peers
W
hen advisers evaluate the success of their practice for 2020, they w
to factor in the influence of COVID-19-and how it has changed
as usual. The PLANADVISER Practice Benchmarking Survey, fie
October, gives us insight into how retirement plan advisers ran their bus
the past year. Especially in 2020, it provides an opportunity to reflect on
ences since last our last survey in light of the pandemic.
While a chief concern for practices is often adding new clients, this
the list this year, with 58% of responses, up from 43% last year.
During a panel discussion at September's virtual PLANADVI
Conference (PANC), experts noted that the best new business now d
from marketing-it comes from referrals. This is especially true for
who specialize in specific sectors. " Referrals from existing clients,
Accountants [CPAs] and attorneys is critical, " said Randall C. Lo
managing principal of SageView Advisory Group, in Irvine, Califo
similar focus, with health care, higher education and governmen
" Many of those industries have events, and that has helped facili
Preserving client connections is vital-especially in the
sources agreed. This was underlined by this year's survey fin
tion was advisers' third highest concern, growing to 32% fro
The past six months have provided a unique framework f
clients need from their service providers. Joshua Itzoe, part
officer at Greenspring Advisors, on another of our virtual c
Art by Philip Lindeman
Practice Structure
Does Your Practice Use a Defined Contribution
Aggregator for Support?
2019
2020
2020
l Yes
l No
47% 51%
53% 49%
2019
Revenue and Fees
How Fees Are Disclosed to Plan Sponsor Clients
2019
Contract
Annual review
ERISA* 408(b)(2) disclosure statement
Fee disclosure statement
Form ADV
Most Common Defined Contribution Aggregators
2019
Global Retirement Partners (GRP) Financial
OneDigital
Pensionmark Financial Group
Retirement Plan Advisory Group
NFP
Hub International
CAPTRUST
Cetera
SageView Advisory Group
Other providers
Avg # of Advisers in Practice
3-5
≤ 2
6-10
Types of Plans
11+
401(k) 403(b)
457 NQDC Other
13% 92% 4% 4% 81% 11% 4% 4% 81% 9% 2% 1% 7%
15% 96% 4% - 61% 36% - 3% 77% 4% 2% 1% 16%
13% 81% 11% 8% 38% 38% 12% 12% 78% 7% 3% 2% 10%
16% 81% 16% 3% 52% 35% 13% - 73% 4% 2% 3% 18%
13% 84% 12% 4% 28% 28% 36% 8% 73% 7% 3% 3% 14%
9% 72% 22% 6% 17% 44% 28% 11% 83% 5% 2% 2% 8%
13% 60% 24% 16% 12% 28% 40% 20% 82% 7% 3% 3% 5%
8% 40% 20% 40%
- 13% 20% 67% 55% 15% 5% 7% 18%
Adviser Firm Affiliation
l Registered investment adviser
l Wirehouse broker/dealer
l Hybrid/Dually registered*
l Independent broker/dealer
l Other
*Registered investment adviser (RIA) and broker/dealer (B/D)
2019
39%
25%
22%
9%
5%
2020
39%
26%
22%
11%
2%
2020
2019
Do You Offer Health Savings Account
(HSA) Consulting Services?
2019
2020
l Yes
36% 28%
2019
l No, but may in future 47% 47%
l No
17% 25%
l Yes
l No
Whether Compensation Varies Based
On Products or Services Offered
2020
2019
2020
42% 43%
58% 57%
2
2020
Do You Have a Written Business
Plan That Governs Your Practice?
2019
l Yes
l No
2020
82% 84%
18% 16%
Do You Provide Individual Advice or
Wealth Services to Plan Participants?
2019
2020
l Yes
l No
80% 74%
20% 26%
2019
2019
2020
Distribution of Clients, by Fee Model
2020
67%
10%
7%
12%
2020
-
Requests for proposals
2020
21% 29%
14%
11% 10%
8%
7%
4%
3%
3%
1%
4%
9%
-
4%
-
4%
19% 21%
*Employee Retirement Income Security Act
Average Allocation of Revenue, by Expense
2019
Adviser salary
Broker/dealer services
Staff salaries
General expenses
Travel expenses
Marketing expenses
Tools and services
Compliance expenses
All other expenses
2020
37% 36%
14% 16%
14% 15%
10% 10%
5%
4%
4%
3%
7%
4%
4%
5%
2%
10%
2020
91% 89%
82% 82%
67% 69%
67% 68%
52% 53%
52% 47%
planadviser.com Nov
l Asset-based
l Fixed, project-based
l Fixed, per-participant
l Blend - Asset-based and fixed 4%
l Other
2020
20 | planadviser.com November-December 2020
planadviser.com November-Dece
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PLANADVISER - November/December 2020

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