401(k) Specialist Issue 3 - 2021 - 39

401(k) KOACHES KORNER
* Are the fees reasonable and transparent?
* Is there a large quantity of investment
fund choices?
* Is the fiduciary coverage adequate?
Assuming the answer to all is " yes, " what
else is on their wish list? They're likely to
compare plan notes with a peer at another
company. Eventually, they may discover
someone else with a solution more tailored to
their company's needs and therefore require
more customization.
Solution: The CFO who wants customization
is often looking for unique investment
solutions with a high degree of flexibility. In
this area, the industry has made significant
technological advances. It's now possible for
advisors to build customized model portfolios
and target-date funds tailored to the plan
sponsor's specific demographics.
Add in a personalized managed money
solution, and the advisor can now confidently
tell the CFO they have customized options
unique to their plan.
Chief Executive Officer
Challenge: The CEO is the biggest wildcard,
and their focus is running a productive
and growing company. Pandemic-induced
turnover lingers. PayScale reports that 66% of
companies are concerned about employee
turnover, compared with 20% in 2010.
While losing good `rank` and file employees
is always difficult, it pales in comparison
to replacing a valued executive, especially
in today's job market. So the CEO most
likely wants to better reward and retain key
employees.
Solution: Unfortunately for the CEO, executive
retention is a bit more complicated, but
the advisor's 401k and ancillary knowledge
can help. Many highly compensated employees
max out contributions before year's end,
and a top-heavy plan won't allow for it at all.
Recommending cash balance defined
benefit (DB) plans, as well as a non-qualified
deferred compensation plan (NQDC), help.
NQDC, in particular, is the only plan type that
allows a sponsor to discriminate in favor of
targeted employees.
Plan advisors might see it as a lot more
work, but the good news is that many
recordkeepers and third-party administrators
are offering solutions to better support the
advisor.
Aligning with the right partners and effectively
answering the " better " question can
help you address the plan sponsor's wish list,
whatever it may be, to increase your business
retention efforts and spur interest from other
sponsor prospects.
Randy Fuss is a Practice Management Consultant
with Cuna Mutual Group.
WITH A CLICK OF A BUTTON
YOU CAN TEST DRIVE TOOLS TO
ENHANCE YOUR 401(k) PRACTICE
CLICK ON THE ORANGE TOOL(K)IT BUTTON
401(k) advisors now have the ability to " test-drive " tools created specifically for their practice,
their plan sponsors and participants. The 401(K) TOOL(K)IT offers advisors the fastest and
most efficient way to get direct access to the tangible tools available to them.
Simply go to 401kspecialist.com and click on the TOOL(K)
IT button on the top navigational bar. Once there you'll find
direct links to innovative tools created for you and your
clients by top industry leaders. Discover how this powerful
resource will help you streamline your practice, while
improving outcomes for your sponsors and participants.
ISSUE 3 2021 | 401kSpecialist.com
39

http://www.401kspecialist.com http://www.401kSpecialist.com

401(k) Specialist Issue 3 - 2021

Table of Contents for the Digital Edition of 401(k) Specialist Issue 3 - 2021