Rollover & Distribution Planning

Clients increasingly expect a consultative approach to rollover and distribution planning. They want maximum choices and options and expect their rollover strategy to be linked to their greater investment plan. For some the rollover marks a change in job and no material change in investment strategy. However, for an ever-increasing group of boomers, the rollover process is often the watershed event that marks a formal change in investment strategy from an individual who is moving out of an asset accumulation phase into a "Wealth Harvesting" phase. Our efforts blend the key elements of retirement product knowledge, IRS rules and regulations, and behavioral finance to create effective programs that offer a deeper understanding of the rollover marketplace and the strategies advisors must master if they are to succeed in managing money for both "Job Changes" and "Wealth Harvesters". Below is a framework for a "Wealth Harvester" platform.

Advice Platforms Unprepared

Most advice platforms focus on wealth accumulation during work years
Many have developed expertise in wealth transfer at death
Little focus on skills needed for wealth harvesting in retirement

Advice Platforms

Lack "Wealth Harvesting" Component
Current Typical Client Relationship Model

  • Wealth accumulation
  • Wealth preservation
  • Wealth transfer

Advice Platforms

Need Program Development
Ideal Client Relationship Model

  • Wealth accumulation
  • Wealth harvesting
  • Wealth transfer

Developing a Wealth Harvesting Program

Technical skill development for FA's
Financial advisors must develop expertise in distribution planning

Firm platform development

Firms must develop specialized products, services and support around distribution planning

Client segmentation and communication

Firms must manage client information to ID harvesters and develop a series of specialized communications for them prior to their own initiation of an information search

The PLANSPONSOR Institute - Independent Thought Leadership for the Retirement Plan Industry