7 Common 401(k) Advisor Mistakes, and How to Avoid Them

Always remember - your clients are someone else’s prospects.

A record-breaking 47% of plan sponsors are considering a new advisor. Three reasons why they are looking for a new advisor are because they seem more knowledgeable about 401(k) plans, offer better employee communications and education, and lastly, they offer a better investment lineup.[1] As you reflect on your client services, are there any opportunities for improvement?

Here are a few fun examples of what not to do...

1.??????Hoarding your knowledge | Communicate your retirement plan expertise through employer newsletters, plan sponsor guides, case studies, and HR checklists. Your clients want to know you have their back and your knowledge is worth sharing.

2.??????Being anti-social | With more and more companies embracing social media, advisor RFPs are starting to include questions about how your social media presence improves retirement knowledge. Now is a great time to get social and engage.

3.??????Having an incomplete LinkedIn profile | Don't make it difficult for potential clients to find out more about your qualifications and experience. Double-check that your LinkedIn profile is complete. And, if you're unsure, visit your profile page and look for any of LinkedIn's suggested prompts. Your profile is today’s virtual handshake.

4.??????Being a digital ghost | 76 seconds. If a person can't find you in that time frame, they give up.[2]?Prevent this by increasing your digital presence. Answer industry questions online or post about key changes in legislation (e.g. SECURE 2.0). By becoming more visible online, you will increase your credibility and drive more business your way.

5.??????Not answering requests | Review the ways that people can contact you. For example, do you still give out your office phone number? And if so, who answers the phone? Who checks the voicemail? What about the contact box on your website, who manages it? This may sound inconsequential, but if clients can't reach you that might turn into frustration and that could open and advisor RFP.

6.??????Skipping education meetings | Survey after survey shows that employees believe their employers are responsible for their financial well-being – and that includes retirement savings. Encourage your employers to promote a financial education meeting and use this opportunity to teach participants about the benefits of saving through their 401(k) plan. The words “You don’t know, what you don’t know” has never been more applicable.

7.??????Limiting the relationship | Who are the next-in-line decision-makers? Take the time to get to know the up-and-coming leaders within the company, so if/when there is turnover on the retirement plan committee, you already have a healthy relationship with the newest member. The successful advisor typically knows- and works with - the entire committee.

Thriving 401(k) businesses are built on happy clients, active referrals and healthy growth year after year. By avoiding the common speed bumps outlined in this article, you can maintain their momentum towards achieving their goals.

So, advisors, remember to steer clear of these common pitfalls. Your clients - and potential new clients - will thank you.

Thanks for reading and Happy Marketing!

401(k) Marketing is a comprehensive and strategy-driven marketing program dedicated to empowering the retirement plan industry with high-quality marketing. We strive to generate awareness, streamline sales opportunities and earn more 401(k) business. Our digital content and sales materials are specifically designed to help retirement plan professionals attract the right decision-makers, ultimately inspiring Americans to become financially prepared for their future.

[1] “Plan Sponsor Attitudes Survey 13th Edition.” Fidelity. June 2022.

[2] Dean, Brian. “How People Use Google Search.” Backlinko. 8 Aug 2020.