Tuesday, 21 November 2023 02:22

Rollover Partnership Can Be a Win-Win Proposition

Written by
Rate this item
(0 votes)

Financial advisors increasingly recognize the significant growth opportunities that rollovers from 401(k) plans represent. With more than $10 trillion invested in participant accounts, these plans offer advisors a considerable potential stream of new assets under management (AUM) in the coming years.


This potential is especially pronounced for advisory organizations that provide both plan advice and wealth management services. The recent trend of advisor consolidation and the push for firms to diversify their offerings means these organizations are in a prime position to attract rollovers from these retirement plans.


However, it's worth noting that some advisors have account minimums that may exclude smaller rollovers or prefer not to take on new accounts with low balances. Additionally, plan sponsors often prefer that all participants, not just those with larger balances, have the opportunity for rollover assistance.


This is where collaboration with record keepers comes into play. A successful example of such a partnership was recently highlighted on planadviser.com, featuring an interview with Ed Murphy, CEO of Empower. The article pointed out Empower's quarter-over-quarter growth in rollover capture. According to Murphy, this success was attributed to the firm's capability to service average accounts of around $100,000, which third-party wealth managers often overlook.


In essence, strategic partnerships in rollover capture can be a win-win, enhancing service provision to all participants while providing potential wealth management AUM growth for financial advisors and record keepers alike.

Finsum: Partnering with 401(k) record keepers on rollover capture offers advisors a win-win proposition.


Contact Us



Subscribe to our daily newsletter

We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…