As time went on, things improved bit by bit. Most notably with the creation of document signing technology and other similar services that effectively put office facsimiles out of their misery. But the retirement plan setup process didn’t really improve much beyond that with continued long setup timelines, multiple back and forth communications between client, provider and advisor and an overall antiquated process ignoring the benefits of readily available technology for all of us to use…until now. 

Efficient 401(k) Setup

Let me introduce you to one of the many benefits 401GO clients and advisor partners experience when taking their first steps with us—the easiest and most efficient setup process in the retirement plan industry! What makes 401GO’s setup process so easy and efficient for our clients and partners?

Time

• Initial setup steps that historically took hours to complete are now completed in as little as 15-30 minutes. Small business owners are almost always short on time and 401GO’s 401(k)setup process gives them back the gift of hours!
• 401GO’s entire setup process from initial step to first payroll contribution are completed in one business week.
• 3 month setup timelines? 6-8 week delays? 45 – 60 day deadlines and cutoffs? Not at 401GO. I personally helped my advisor partners and their clients setup six new Safe Harbor plans on Sept. 30th this year with plan effective dates of Oct. 1st. All in a day’s work at 401GO!

Efficiency

• All of the new plan documents are generated during the initial setup step and ready for client review and e-signature.
• Speaking of e-signature, with 401GO, the client only has to complete one e-signature for their entire new plan setup. Yep, you read that right. Only one e-signature.
• Once the client completes the e-signature step, the plan is immediately assigned their new dedicated Client Support Manager (CSM) who will then connect with the client within 48 hours and assist with the remaining onboarding steps and remain attached to the new plan as their dedicated CSM moving forward.

Ease of Use

• 401GO’s setup process is so easy and intuitive to use that it is designed for the advisor to invite their clients to initiate and complete the process on their own. Or, the advisor can complete the setup on their clients behalf and have it ready for signing in minutes!
• Commonly, the approach our advisor partners take is to sit down together with their client and help them complete the initial setup process together.
• The entire setup process is done online without a shred of actual paper – sorry Dunder Mifflin! 

A New Approach to 401(k) setup

So let’s recap what you don’t get with 401GO. No more 87 pages of paperwork. No more multiple signatures required as if the client was buying a new home. No more hours of a clients and advisors time spent on retirement plan setups. No more getting in line 6, 8 or even 12 weeks in advance to meet the vendors deadline and time frame. No more clients passed around like a hot potato during their new client experience. 

401GO is truly an advisor-centric platform built by small business people for small business people and their employees. Check us out for yourself and let our team show you firsthand. We have an amazing team from development to operations, from support to marketing and from compliance (yep – we even really like our compliance peeps!) to sales, all more than ready to make 401GO your preferred retirement plan partner. 

The post Everything Is Easy with 401GO – Especially the 401(k) Setup Process appeared first on Fast and Affordable 401k for growing businesses.

Plan advisors typically consider the following factors when choosing a 401(k) provider to partner with.

Factor 1: Plan Features and Flexibility

Advisors look for 401(k) providers that offer a wide range of plan features and flexibility, such as investment options and plan design options. This allows them to tailor the retirement plans to the unique needs and goals of their clients, including both plan sponsors and participants.

Make sure your 401(k) provider offers safe harbor plans and a range of vesting, matching and eligibility options. Ask them if they are ready to comply with SECURE Act 2.0 regulations.

Factor 2: Cost Structure

The cost structure of the 401(k) plan is an important consideration for financial plan advisors. They assess the fees associated with the plan, such as administrative fees, investment fees, and recordkeeping fees, to ensure that the plan is cost-effective and provides value to their clients. They may also compare the costs of different 401(k) providers to ensure that their clients are getting competitive pricing.

Details are important when evaluating costs. For example, are fees charged per eligible employee or per active participant? What do base fees cover and what will be charged extra? How well does the pricing scale as the company grows? 

Factor 3: Plan Administration and Compliance

Advisors consider the ease of plan administration and compliance support offered by the 401(k) company. This includes evaluating the quality and efficiency of the company’s recordkeeping, reporting, and compliance services. Robust administrative support can help reduce the administrative burden on plan sponsors and ensure that the plan remains in compliance with applicable laws and regulations. 

Advisors look for payroll integrations, especially for the providers they recommend. Integration is a valuable benefit for both plan sponsor and advisor. Good fintech providers will offer plenty of integrations, and automate compliance, which not only reduces errors, but also finds problems early, while they can be easily addressed.

Factor 4: Investment Options and Performance

Advisors assess the investment options offered by the 401(k) company, including the quality, diversity, and performance of the investment funds. They may look for a wide range of investment options, including low-cost index funds and actively managed funds, to provide diversified investment choices for plan participants.

401GO offers a substantial investment lineup, with a diverse selection of low-cost funds. We also allow associated financial advisor partners to create custom fund lineups and models, if they choose to do so.

Factor 5: Technology and Tools

Advisors consider the technology and tools provided by the 401(k) company to manage and monitor the plan. This may include online portals for plan sponsors and participants, reporting and analytics tools, and other resources that facilitate efficient plan management and decision-making.

One of the more unique and useful tools provided by 401GO is the custom portfolio builder. Participants who are uncomfortable choosing their own investments can answer a few questions, and the automation will create a custom portfolio based on their needs and their comfort level. 

Factor 6: Reputation and Track Record

Advisors also evaluate the reputation and track record of the 401(k) company in the industry. They may look for established companies with a history of providing reliable and reputable services, as well as good customer reviews and testimonials from other plan sponsors or financial professionals.

We recommend checking G2 reviews for an honest assessment of the reputation of your 401(k) provider. Look for overall rating, read 1-star reviews to see what reasons unhappy customers cite, and pay extra attention to customer service ratings.

Factor 7: Support and Resources

Financial plan advisors may also consider the level of support and resources offered by the 401(k) company specifically for advisors. This may include access to education, marketing materials, and support from a dedicated advisor support team to help them effectively serve their clients and grow their retirement plan business.

Business owners and their admins receive a dedicated relationship manager when they use 401GO and advisor partners have their own partner portal to help them monitor the health of the plans they oversee.

While 401GO automates as much as possible, we never automate relationships. Our customers can always expect superior customer support from highly-trained experts.

Do What Plan Advisors Do

After carefully evaluating these factors, more and more financial plan advisors are choosing 401GO as a 401(k) company that aligns with their clients’ needs, goals, and expectations, and enables them to provide comprehensive retirement plan solutions to their clients. Do what financial advisors do. Choose 401GO.

The post How Financial Advisors Choose a 401(k) Company appeared first on Fast and Affordable 401k for growing businesses.

Advisors need modern tools and modern ways to reach clientele.

What Employees Want 

Younger employees are looking for more than just financial education. They want professionals to guide them through their unique personal circumstances, explain complex concepts in plain language, and create realistic and actionable goals.

Younger generations are more comfortable using technology to manage their finances, so they tend to look for an advisor who offers online tools. They expect all their banking, investment, retirement and insurance products to be easily manageable from a phone. They’ll tend to prefer an advisor who is accessible through digital means, such as email or video call.

One of the most valuable benefits you can offer these clients is full transparency. They are often skeptical of traditional financial institutions, so they’ll look for an advisor who is clear about their compensation structure. They may prefer fee-only advisors rather than those compensated with commissions or incentives.

Build a Relationship Early

When I was a younger professional, I was working in a position that allowed me to talk to physicians every day, particularly young doctors who were new in their medical careers and practices. I found that while many pharmaceutical companies offer similar competing products in terms of efficacy and performance, with all things being equal, physicians tended to be loyal to certain pharmaceutical brands.

What was the “tiebreaker” for these younger physicians? It was the relationship that was established with the pharmaceutical companies. These relationships were built in residency, when the pharma company would support them in the early stages of their careers. The brands built their following early, and the physicians tended to reward them with loyalty throughout their careers.

Financial advisors can use this strategy by shifting the focus from attracting clients with high AUM (assets under management) to gathering clients that might have high AUMs in the future. This means targeting younger people who are just starting their careers and building relationships with them early on. By doing this, financial advisors can help shape the financial habits of their clients from an early stage, setting them up for long-term success.

To attract younger clients, ditch the traditional marketing methods, such as cold calling and direct mail. Instead, focus on building a strong online presence and using social media to connect with potential clients. This means creating engaging content that speaks to your target audience and sharing it on platforms like LinkedIn, Twitter, Instagram and Facebook.

How to Deliver Change

Financial advisors can use technology to their advantage. With financial wellness tools and resources and digital financial planning software, advisors can provide more personalized advice and services to their clientele. This can help attract younger clients who are more comfortable with technology and prefer to do things digitally.

Be mindful of the changing regulatory environment. New regulations, such as the SEC’s Regulation Best Interest (Reg BI), require financial advisors to act in their clients’ best interests. This means providing more transparent and accurate information about fees, commissions, and potential conflicts of interest. 

Offer more comprehensive financial planning services. Younger clients are looking for help with everything from budgeting and debt management to retirement planning and investment strategies. By offering a wide range of services, financial advisors can position themselves as the go-to resource for all of their clients’ financial needs.

One of Your Best Tools

One of the most valuable tools you can have is an active partnership with 401GO. We understand how valuable financial advisors can be and we created our platform to facilitate that relationship for a truly advisor-led experience. 

Our competitors can’t even come close.

Find out more about how a partnership with 401GO can make you and your valuable service more scalable and impactful and help your book of business grow.

The post How Financial Advisors Can Navigate Modern Workplace Trends appeared first on Fast and Affordable 401k for growing businesses.