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How Retirement Plan Advisors Can Lose Clients In A Flash

Like Senator Pat Geary in The Godfather Part II, I can be a little frank, a little too frank, but I don’t blackmail mobsters or visit joints owned by Fredo Corleone. Expressing an opinion or offering advice can upset a few apple carts (I still don’t know what that means). As a plan provider, you can take my advice with a grain of salt, but there are certain clear mistakes you can avoid today and this is what this article is all about.

I wouldn't read much more in that DOL Crypto opinion

One of the problems with a Department of Labor (DOL) guidance, there are certain professionals who read too much into things.

Quite honestly, the DOL’s wariness of a crypto brokerage window doesn’t mean that they have a change of view of normal brokerage windows. Cryptocurrency is unregulated and prone to huge price swings. Investments in normal brokerage windows are. While I don’t think there will be a change, I have always felt that the Dol should formulate criteria for the setup and oversight of these windows with liability protection for the plan sponsors that offer it.

Washington University Settles Case

Washington University reached a settlement agreement in the lawsuit filed against them in a federal court in Missouri for $7.5 million.

One part of the settlement agreement will require that defendants provide annual fiduciary training for all members of the Washington University Retirement Plan Advisory Committee.

The agreement also requires the committee to evaluate the plan’s investment policy statement (IPS) at least annually, with input from the plan’s financial advisor, and implement any updates to the IPS that the defendants deem appropriate.

Also, there must be a request for a proposal for plan recordkeeping services before the conclusion of the settlement period.

The lawsuit had alleged multiple violations of ERISA over the school’s selection and monitoring of its 403(b) plan investments.

DOL has grave concerns over Fidelity Bitcoin decision

The Department of Labor criticized Fidelity Investments’ plan to allow investors to put bitcoin in their 401(k) accounts.

“We have grave concerns with what Fidelity has done,” Ali Khawar, acting assistant secretary of the Employee Benefits Security Administration. Khawar stressed the speculative nature of cryptocurrency and the hype around the fear of missing out as reasons his department is concerned about the move. Khawar has said that crypto has “intriguing use cases” but needs “maturing” before it’s suitable to be placed into a retirement savings account.

The DOL cites crypto’s volatility, uncertain valuations, and evolving regulatory environment as reasons for concern.

LinkedIn isn't a dating site

Ever since I started my law practice, LinkedIn has been a very effective tool for me in growing my business. I have been rewarded with meeting so many great retirement plan professionals that have helped me over the past 12 years.

Whether I’ve connected with these professionals or they’ve connected with me, it’s always done professionally. There was never any sales pitch that comes along with an invitation. I know what a financial advisor does and they know what an ERISA attorney does. We all realized that any relationship requires trust. So I’m always shocked when I get an invitation from an advisor or an insurance salesperson that just wants to talk and sell me something or for some reason, thinks that I’ve never worked or referred work to another financial advisor.

Acting like a shifty salesperson by trying to connect with other people on LinkedIn isn’t going to work. Networking is like dating, it will take time to develop a relationship and if you go for the quick move to the basket, you’re going to end stuffed more often than not.

Seattle is Friday.

Seattle has been booked for September 9th. The event will emanate from T-Mobile Park, home of the Seattle Mariners.

For 401(k) advisors, it's the most fun for just $100. Meet and greet with a mariners great, lunch, stadium tour, and 5 hours of content from great 401(k) plan providers.

We will have game tickets that night as the Seattle Mariners take on the Atlanta Braves.

For information on sponsorship, which starts as little as $500, please click here.

Charlotte registration is open.

Charlotte has been booked for November 18th. The event will emanate from Bank of America Stadium, home of the Carolina Panthers.

For 401(k) advisors, it's the most fun for just $100. Meet and greet with a Panthers great, lunch, stadium tour, and 5 hours of content from great 401(k) plan providers.

For information on sponsorship, which starts as little as $500, please click here.

National Virtual Conference registration is open. Early bird is $2.23

Our national event is virtual again. Spread over 2 days in January, you can attend the event from the comfort of your office or home.

For 401(k) advisors, it's the most fun for just $2.23, you read that right.

For information on sponsorship, which starts as little as $500, please click here.

VOLUME 13 ISSUE 9

September 2022

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