One of my favorite parts of the NAPA 401(k) Summit is a comprehensive annual survey we do of advisors in attendance at the Summit I call the Summit Insider.
It’s a unique opportunity to get the perspective of hundreds of retirement plan-focused advisors in a unique window of time. A chance, if you will, to see what’s on the collective minds of a very special group of individuals.
Like the networking experience of the Summit itself, it’s a chance to see what is actually on the minds and driving forces for the nation’s leading advisors. Sometimes it’s a validation—sometimes a repudiation—but it’s always insightful, all the more so in view of this year’s (record-breaking) response to the Summit Insider questionnaire.
Over the past couple of weeks, I’ve shared some insights in the NAPA-Net daily—but if you’re looking for a quick sense of the advisor perspective(s) on business practices, industry trends, team building, or future focus—well, here you go:
- There have been BIG shifts in sentiment regarding cryptocurrency (from positive to negative game changers) and state-run IRAs (ditto).?
- Managed accounts continue to be viewed negatively—a sharp and sustained turnabout from three years ago (when they were actually seen as a positive game changer).
- ESG remains the most over-hyped trend—but advisors are split as to whether it is a negative or positive game changer.
- Indeed, when it comes to over-hyped trends, ESG has demonstrated remarkable “staying” power, having topped that most over-hyped list for (now) four years running—and this year drew nearly THREE times as much support for that categorization (last year it was only twice as supported) as the #2—which was, again, cryptocurrency. MEPs/PEPs crept up to the #3 slot, while actually declining in overall ranking from its placement the past two years.?
- Cost loomed large as the biggest hurdle for managed accounts, though not far ahead of “participants lack understanding of how they work.” Most see the future of these as being offered by the advisor’s firm.
- Plan sponsor interest in retirement income options really hasn’t changed, hovering somewhere between “minimal” and “occasional.” Something else that hasn’t changed; portability remains the dominant advisor concern with these solutions.?
- Roughly two-thirds are now incorporating HSAs (health savings accounts) into financial wellness curriculums—though a third of those do so only if they consulted on the specific solution.?
- Nearly a quarter (24%) say their team’s work/life balance is “better than ever.”
- “Attracting and retaining talent” alongside “scaling your practice” remained the big issues for advisor practices over the next 12 months. Perhaps somewhat ironically, succession and advisor consolidation were in the “not important” category.
- Among support from DC wholesalers, “plan tools and resources” slightly edged out “competitive info” as valued services.
Thanks once again to all who took the time to share those (your?) perspectives and insights on the pages that follow. Thanks for being part of the 2023 NAPA 401(k) Summit—and thanks particularly to the sponsors of this year’s NAPA Summit Insider!
And please—like, share and comment! Check out the rest of the 2023 NAPA Summit Insider at https://bit.ly/23Summitinsider1
See you (all) in Nashville April 7-9 for the 2024 NAPA 401(k) Summit!
Content Strategist and Creator for Financial Services | Podcast Host at The Retirement Space Podcast
1 年Thanks for the overview, Nevin Adams. Along the lines of "attracting and retaining talent," I'm curious if we - as an industry - are developing the necessary pipeline of new advisors for the future. With so much talk about seasoned advisors planning to phase out in the coming years, where will the next generation come from?
President, Income America | Champion for Guaranteed Income & Retirement Planning | 401(k)
1 年Nevin Adams I am not surprised by the feelings about ESG, but I am surprised about the change of heart on managed accounts. I can understand “cost” as on objection - as cost and performance are hard to benchmark- but “participant lack of understanding” I don’t get. The idea behind MA is pretty easy (it’s personalized to you) but hardly any can understand the core menu lineup - thank God for default - so I think applies for most #401k solutions. Plan sponsors want #retirementincome - did the survey cover RPAs or sponsors? There are some announcements coming soon that will help mitigate the fear around portability. Keep up the hard work in #retirement!!
Thank you for diligently collecting and reporting on this information Nevin. Were there any questions around bridging the retirement coverage gap? Interesting that we continue to beat the drum on how important that is, yet a) the main vehicles that seem to be the best ways to increase coverage are in the "overhyped" category and the state options are viewed as detrimental. So how do we get there?
ERISA Compliance Warrior/401k Savior / Go-To Retirement Plan Administrator / ERISA Compliance Consultant
1 年This is great information Nevin Adams. Thank you for sharing. I learn so much from articles like this and from attending the National Association of Plan Advisors #401(k) Summit. Looking forward to Nashville in 2024.