PLANADVISER - September/October 2019 - 21
cover story
When plans are no
longer cost-effective,
there are actions
advisers can take
ukaty Companies Financial Services reigns as the 2019 PLANSPONSOR
Retirement Plan Adviser Mega Team of the Year,
and President Vince Morris has some thoughts on how adviser
firms can maintain profitability in these fee-pressured times.
" Don't rush to be the lowest common denominator, on your
B
fees, " suggests Morris, who founded the Overland Park, Kansas,
advisory practice. " We're seeing a lot of pricing pressure in the
[industry] now, but it's better for the health of your practice in the
long term to run as a profitable entity. Every company deserves to
be profitable, including yours. "
This is a complicated time for plan advisers to assess their profitability,
as more plan sponsors focus intensely on fees. Sponsors
ranked plan fees first-above other much discussed concerns such
as financial wellness and retirement readiness-as their " most
likely primary area of focus over the next 12 months, " according
to Callan's " 2019 Defined Contribution [DC] Trends " report.
" Yes, our clients are demanding more and more value from
us as advisers, " Morris says. " But you are only going to do great
things for your clients in the future if you have that profitability. "
By charging reasonable fees, Bukaty has profited enough to reinvest
significantly in its business-for example, in its financial
wellness program and technology-to help plan administration
run more smoothly. " You can't do that if you're always the lowest
common denominator on fees, " he notes.
Gauging Profitability
Fee and profitability pressures also seem to be partly self-imposed
by some plan advisers riveted on growing their practice's client
list. " I see advisers who are relatively new to the institutionalmarket
business, coming in with low-ball fees to win a plan's business, "
says Michael Maresh, senior vice president at CAPTRUST in
Austin, Texas. " At some point, that strategy is going to come back
to haunt them. At some point, they'll have to increase the fee so
the client can be profitable. "
Art by Dalbert B. Vilarino
planadviser.com September-October 2019 | 21
Addressing
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PLANADVISER - September/October 2019
Table of Contents for the Digital Edition of PLANADVISER - September/October 2019
Addressing Profitability
2019 PLANADVISER Retirement Plan Adviser Survey
2019 PLANADVISER National Conference
Is Fixed Income Working?
The Health Savings Alphabet
SEC Issues Proxy Guidance
Class Certification
An 'IPS' Sets The Standard
PLANADVISER - September/October 2019 - Cover1
PLANADVISER - September/October 2019 - Cover2
PLANADVISER - September/October 2019 - 1
PLANADVISER - September/October 2019 - 2
PLANADVISER - September/October 2019 - 3
PLANADVISER - September/October 2019 - 4
PLANADVISER - September/October 2019 - 5
PLANADVISER - September/October 2019 - 6
PLANADVISER - September/October 2019 - 7
PLANADVISER - September/October 2019 - 8
PLANADVISER - September/October 2019 - 9
PLANADVISER - September/October 2019 - 10
PLANADVISER - September/October 2019 - 11
PLANADVISER - September/October 2019 - 12
PLANADVISER - September/October 2019 - 13
PLANADVISER - September/October 2019 - 14
PLANADVISER - September/October 2019 - 15
PLANADVISER - September/October 2019 - 16
PLANADVISER - September/October 2019 - 17
PLANADVISER - September/October 2019 - 18
PLANADVISER - September/October 2019 - 19
PLANADVISER - September/October 2019 - Addressing Profitability
PLANADVISER - September/October 2019 - 21
PLANADVISER - September/October 2019 - 22
PLANADVISER - September/October 2019 - 23
PLANADVISER - September/October 2019 - 24
PLANADVISER - September/October 2019 - 25
PLANADVISER - September/October 2019 - 26
PLANADVISER - September/October 2019 - 27
PLANADVISER - September/October 2019 - 2019 PLANADVISER Retirement Plan Adviser Survey
PLANADVISER - September/October 2019 - 29
PLANADVISER - September/October 2019 - 30
PLANADVISER - September/October 2019 - 31
PLANADVISER - September/October 2019 - 32
PLANADVISER - September/October 2019 - 33
PLANADVISER - September/October 2019 - 34
PLANADVISER - September/October 2019 - 35
PLANADVISER - September/October 2019 - 36
PLANADVISER - September/October 2019 - 37
PLANADVISER - September/October 2019 - 38
PLANADVISER - September/October 2019 - 39
PLANADVISER - September/October 2019 - 2019 PLANADVISER National Conference
PLANADVISER - September/October 2019 - 41
PLANADVISER - September/October 2019 - 42
PLANADVISER - September/October 2019 - 43
PLANADVISER - September/October 2019 - 44
PLANADVISER - September/October 2019 - 45
PLANADVISER - September/October 2019 - 46
PLANADVISER - September/October 2019 - 47
PLANADVISER - September/October 2019 - Is Fixed Income Working?
PLANADVISER - September/October 2019 - 49
PLANADVISER - September/October 2019 - The Health Savings Alphabet
PLANADVISER - September/October 2019 - 51
PLANADVISER - September/October 2019 - 52
PLANADVISER - September/October 2019 - 53
PLANADVISER - September/October 2019 - SEC Issues Proxy Guidance
PLANADVISER - September/October 2019 - Class Certification
PLANADVISER - September/October 2019 - An 'IPS' Sets The Standard
PLANADVISER - September/October 2019 - Cover3
PLANADVISER - September/October 2019 - Cover4
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