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Beginning in April 2017, a new Department of Labor rule goes into effect, changing how a fiduciary is defined. The rule aims at ensuring advisors put their clients’ best interests first (instead of, for example, recommending products that generate higher commissions).
For some brokerage and advisory firms, the changes mean little. But for others, the new regulation will require significant investments in technology and process changes in order to comply with the onerous compliance challenges created by this change.
According to a recent Fact Sheet released by the White House, President Obama is calling for tax reforms that would include provisions for retirement. At his 2015 State of the Union Address, he referenced his plan to expand access to retirement savings options for middle-class workers. Whether you support the President’s plan or agree with his opponents, one thing is certain - our country is facing a retirement crisis.
You’ve probably seen the TV ads with the big ready “Easy” button. Here’s a hint: it’s the ad for an office supply chain with a name that rhymes with maples. If only you could take that red button and put it in front of all the small business owners who don’t have retirement plans set up for their companies. “Just hit the button,” you would say. And shazam! They’d have their retirement plans and you’d have more business. Okay, establishing a retirement plan isn’t THAT easy, but it’s close, especially with a smart, dedicated financial advisor like you on the job.
For most people, by the time they’re in their 40s they’ve likely experienced the highs (and perhaps the lows) of personal finances. They may have some money in the bank, own a house, be saving for their children’s college tuition – and hopefully, they have been contributing to a retirement plan.
For plan participants in their 30s, there are a lot of demands on their money. Maybe they’re starting a family or perhaps they just purchased their first home. So what conversations should you have with them about retirement planning?
A lot of advisors will tell their clients that saving for retirement is like running a marathon. If you pace yourself in your early years and keep up a steady pace over the long haul, you’ll reach the finish line in good shape.
That’s exactly what the National Association of Plan Advisors (NAPA) is saying in a new message that makes the point that plan advisors can help retirement savers “go the distance.”
NAPA makes four important points in their campaign demonstrating the value a plan advisor brings to the table: