- 90% of plan sponsors had a no-call policy
- 100% moved to an in-person finals presentation
- 5 to 11 advisors were invited to submit, with 3 to 6 moving on to the finals
- 80% of plans hired a new advisor
- While the median plan was $35 million, the average was $841 million
While most advisors insist that clients go to RFP every 3-5 years for their record keeper (sometimes more often), not relying on static databases like the 401k Book of Averages, they sing a different tune when it comes to the plan advisor. Experienced advisors have little to fear other than price compression – but fees in the absence of value are always high.
Regardless of whether clients go to RFP, experienced advisors are under siege from emerging advisors with little experience and fancy reports from 3rd parties that can fool prospects offering reduced pricing. Elite and Core plan advisors need to be prepared to defend their fees by showing value. By waiting for clients to suggest an RFP or even start conducting one on their own, do you think it puts an experienced advisor in a better light and position if they take the initiative? I’m just wondering.
If you’re interested in conducting an advisor RFP for your plan advisor but don’t know where to begin, go to https://401ktv.com/erfp/. For more on best practices on how to select and leverage an advisor, go to SHRM’s HR Magazine
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