Finding the Silver Lining: State Mandate Opportunities for Financial Advisors
State-mandated retirement programs aren't just reshaping the retirement planning landscape. They're also bringing about a shift in the financial services industry, creating significant opportunities for advisors who recognize their potential.
State-mandated retirement programs are rolling out across the U.S., aiming to close the savings gap by requiring employers without existing plans to offer retirement benefits.
To date, more than 25 states have proposed state-mandated retirement plan legislation. And 11 states already have an active program in place.
As more states continue to hop on the mandatory retirement plan bandwagon, financial advisors are in a unique position to leverage this opportunity to expand your book of business and better serve your existing client base.
Here's how:
Generating new business in an underserved market
Many employers impacted by state mandates are small businesses that may have been previously overlooked by financial advisors, but now represent an avenue for growth:
- Providing dedicated financial guidance
- Helping busy businessowners navigate retirement options
- Supporting them with professional advice related to the state mandates
Offering educational services
State-mandated retirement programs provide the perfect platform for showcasing your expertise. By positioning yourself as a knowledgeable authority on your service area's state programs, you can assist both current and potential clients:
- Connecting with business owners and explaining the options when it comes to giving their employees access to a qualified retirement plan
- Providing guidance on program implementation and best practices
- Helping business owners navigate the intricacies and tax consequences of offering a state-mandated plan vs. sponsoring their own
Providing alternative solutions
While state-mandated programs serve as a baseline solution, it's not a one-size-fits all solution for every business. Financial advisors can explain alternatives:
- Discussing the business's long-term vision and helping to create comprehensive retirement planning strategies
- Evaluating qualified retirement plan options, including the tax and compliance obligations of each option
- Assisting in the plan's set up and periodically reviewing plans
Managing compliance
Financial advisors are also in the position to be your clients' plan compliance facilitator, overseeing:
- Annual testing coordination
- Contribution requirements and limitations
- Registration deadlines and procedures
- Audit support, and so much more
The value of a trusted provider
As a financial advisor, a strategic relationship with a trusted retirement plan provider can transform your practice into a retirement planning powerhouse. Working with ADP can strengthen your advisory services, giving business clients and their employees the support, tools and technology they need to feel confident in planning for retirement, as well as their long-term financial well-being.
To learn more, contact an ADP retirement planning services specialist or call 844-237-3548.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.
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