by Craig Rosenthal
Feb 16, 2021
As a successful business owner, you have become intimately familiar with the inner workings of your practice. Over the years you have come to understand profitability, revenue ups and downs, return on investment, marketing, pipeline management, staffing, and a rush of other entrepreneurial responsibilities. That is of course on top of your primary responsibilities as a retirement plan advisor.
As the “CEO” of your enterprise, you probably have a deep appreciation for spreadsheets, graphs, charts, and other statistical data that help you see a clear picture of your business’ health.
These numbers are often pulled from many different sources and need to be pieced together. It takes long hours, research and focus to find the right numbers to extrapolate the exact metrics you need to work “in” your business. But you have learned the secret recipe necessary to read the tea leaves and understand your business’ vitality. Because – as you know – your livelihood depends on it.
But what if there is an easier way?
When you calculate gross retirement plan revenue, are you getting the full picture? Your math may be accurate, but is your revenue aligned with industry benchmarks for your service model? Are you under charging, over charging, under servicing, over servicing, or some combination? That’s why you need to calibrate and evaluate each client to learn if your gross number accurately reflects your value, service and extra credit items.
Opening the hood of each client to learn if they are priced accurately could mean the difference between loss and profitability. By going inside your service model and with Fiduciary Decisions tools, you can objectively learn how your fees compare based on your service model. Then you can appropriately charge your clients.
When each client is responsible for paying their fair share, your business benefits because you are charging a market rate that is supported by industry standards. During the process, you may find meaningful dollars that are being left off the table.
Whether it is you or a teammate, working on tasks can creep from minutes to hours to days. With each payroll cycle, those office hours can eat into profitability. That is why time tracking and task ownership are germane to a heathy business.
Ways you could benefit from an organized time management system:
However, this exceptionally valuable data is only available after time tracking is implemented. And while it may seem like a big undertaking, as the owner, you will immediately appreciate the perched view that time tracking provides into your practice.
Each year, most advisors have a number in mind for growth. This year I would like my business to grow by X%. Sound familiar? When you have tangible business goals, it helps you track progress and benchmark success. But how are you tracking your pipeline?
As you know, process is key. This rings true for fiduciary duty and your sales pipeline. Especially in an industry with long average sales cycles, it is helpful to have a streamlined step-by-step process to record activities, link actions and show movement.
The goal of a retirement plan is to help hardworking employees save an adequate amount that will comfortably care for them throughout their retirement years. As a retirement plan advisor, one of your many responsibilities is to help evaluate the plan’s overall mission. How effective is the plan at creating successful retirement outcomes?
Thankfully, there are many levers to pull that might nudge the participants closer and closer to achieving a comfortable income replacement ratio. Those could include plan design changes, auto-enrollment, auto-escalation, deferral rates, investment returns, fees, asset diversification, preventing account leakage, financial education, financial wellness resources, and much more. As their trusted advisor, you have the ability to show the retirement plan committee how their plan is compared to their peers, industry standards and overall competitiveness. These insights help you demonstrate the extremely valuable work that you do and prove how your oversight has enhanced the plan – and participant outcomes.
At Fiduciary Decisions, we took all of these key business insights and put them into an all-in-one CEO dashboard. The dashboard provides you with the essential knowledge you need to operate a profitable, scalable, efficient and repeatable retirement plan advisory business.
In addition, we have built integrations with recordkeepers, investment monitoring services and RFP systems. These are just a few more of the ways that Fiduciary Decisions helps you see your whole business – with an all-in-one convenient business intelligence dashboard.
Contact us for a demo and learn how your business can prosper.
To learn how Fiduciary Decisions Business Management Dashboard and its Sales Funnel and associated tools can help you grow your business.
866-516-4909 option 4
Value and Fee Benchmarking Report, a peer-to-peer evaluation report that shows a comparison of the existing plan to other similar plans and can provide guidance on how changing certain plan features could help the employer offer a more competitive retirement plan benefit.
Our report follows a 5-step process that is fair and repeatable.
Customize the Benchmark Group
We use numerous factors to build a benchmark group from our proprietary database that is customized for each peer group using mathematical models designed to optimize the degree of accuracy.
Review Service Provider Quality
The DOL has noted in prior rulings that it is allowable to consider the Quality of the Service Provider when determining Fee Reasonableness. We provide a logical framework to analyze this issue.
Assess Scope of Services
We examine the scope of services being provided so plan sponsors can understand how the services they are receiving are impacting the cost structures of the service providers.
Examine Value Delivered
We examine the Value Delivered in terms of helping plan sponsors do their job as a Responsible Plan Fiduciary and to participants in terms of helping them save for retirement.
Finally, we track and compare fees to the Benchmark Group and to FEEPOINT®. FEEPOINT is a proprietary fee calculation designed to account for fiduciary status, extra services and extra meetings that are not found in the typical plan.
Craig is responsible for sales, service, product development and partnerships with the Advisor/Consultant, Broker/Dealer, an DCIO channels.
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