This won’t come as a surprise, but we all have different tastes and needs. The examples are all around us. Take TV, for example. To me, it means movies. To you, it might mean sports or news. But that’s ok because we can customize our experience. After all, it’s not a one-size-fits-all world.
The same applies to retirement plans like a 401(k). Ask two company owners what it means and you might get two different answers. That happens for good reason – they may understand it differently and in fact, they may have a very different plans. It’s no wonder since there are so many options when it comes to 401(k) plans.
To be an effective advisor, it’s important to recognize these distinctions and ask the right questions to learn about the kind of 401(k) your clients have or may need. It’s about working with a company to understand their retirement plan goals while building the trust that will help make your relationship flourish.
Here are a few ideas to begin the discussion. Each can help you learn about a client’s true needs:
- Tell me about your workforce. It’s not just a matter of head count, it’s about being concerned about the age, knowledge and needs of the people a plan will cover. Knowing who will participate in the plan will help you customize it.
- What does financial wellness mean to you? A 401(k) is a savings vehicle, but you can also use it to help educate employees to be healthier in all aspects of their lives.
- Are you familiar with different ways we can structure plan costs? Everyone wants to keep costs in check. But when you’re up-front about fees, clients will understand the benefits of paying for features such as better customer service, safe harbor, AND your expertise.
It’s all about asking the right questions so that together, we can design the ideal retirement plan for each of your clients. For more on this, download the question list and give us a call to talk about how we can help.
