401(k) Specialist Issue 3 - 2017 - 16

It's all about the upgrade-house,
phone, and sometimes sadly (or not)
spouse. It's human nature to wanna
climb the wall and get to the next level;
even more so for advisors, we're in sales.
So how does it work in the 401(k) RFP
process? How do advisors successfully go
from servicing retirement plans with $5 million
in assets to getting a shot at $50 million,
$500 million or a billion and above?
These were questions asked and answered
at a recent study group of top retirement
plan advisors in idyllic and out-of-the-way
Kohler, Wisconsin, hosted by consulting and
advisory services firm Sheridan Road.
They all agreed it's more art than science
(with luck thrown in for good measure), but
it doesn't mean there aren't concrete steps
that advisors can take to win the business.
It begins with the " gimmies, " which are
welcome but rare.
" The HR director of a pretty big current
client, north of $200 million in plan assets,
left and went to an even bigger company
with $600 million in assets, " said Jessica Ballin,
principal of 401(k) Plan Professionals in Edina,
Minnesota. " It's a direct plan with the provider,
and she just experienced her first 401(k)
meeting. She realized the value we bring to
the table, and called us to say they need help. "
One of the most important things to realize
when punching up in the RFP process is that
while the competition is different in, say, the
over $50 million market versus the under, the
needs are the same (mostly), at least according
to Sheridan Road CEO Daniel Bryant.
" We recently pitched final-round presentations
on plans with $240 million, $280 million
and $850 million in assets, " he explained.
" With the over $50 million market, you're
competing against institutional consultants
who are often exempt from a licensing standpoint,
and it's a totally different ballgame. But
clients are just people. A $10 million plan is
no different than a $200 million plan. The
latter might be a little bit more complex, but
they're confronting many of the same issues. "
Bryant referred to an RFP the firm
received in 2007. It was for the Commander,
Navy Installations Command (CNIC) a
division in the Department of the Navy re " It's
amazing to think
that with plan a north of
$100 million in assets, you
just assume that somebody is
watching out for the fees, but
no one is actually doing it. "
- Jessica Ballin, principal of 401(k) Plan
Professionals in Edina, Minnesota.
16
ISSUE 3 2017 | 401kSpecialist.com
" A $10 million plan is no
different than a $200 million
plan. The latter might be a
little bit more complex, but
they're confronting many
of the same issues. "
- Daniel Bryant, CEO, Sheridan Road
sponsible for performing custodial, laundry,
food service and similar readiness tasks.
Even though CNIC had $2.5 billion in
assets, Sheridan Road staff quickly realized
their problems were evergreen and therefore
similar to those of smaller plans. The
committee didn't really understand how the
RFP process worked and they were looking
at total retirement outsourcing (TRO), yet
didn't know what it meant.
Bryant and crew embarked on a six-month
education and preparation project for the
company as part of the proposal, spending
an inordinate amount of time and resources
for the prospect's benefit, only to not get the
business when all was said and done.
Didn't matter; it was time and resources
well spent and a valuable learning experience
for the firm.
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401(k) Specialist Issue 3 - 2017

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