Google retirement plans were not a concern, much less a serious threat, five years ago. But now, that is no longer the case. Tech and businesses seem to need each other, but are they really on a collision course – when it comes to qualified retirement plans? Is Artificial Intelligence just the next-step ingredient that will result in Google serving-up last night’s closing balances for all of your accounts (assets and liabilities alike & your retirement plans) on your phone? Will it arrive like “grits in the South” when you did not even request it?
Many advisors and recordkeepers are eerily concerned with the thought of Amazon financial services being your next plan custodian. There has been limited innovation around the 401(k) retirement plan servicing functions over the last 20 years. Advisors and BDs have a firm grasp on the plan assets; while the industry recordkeepers have a maintained a strangle-hold on the plan participant. And that includes non-retirement plan assets – such as personal data total household data.
A looming question remains, can advisory firms and BDs establish plan participant relationships and maintain strong enough partnerships with recordkeepers before Walmart offers every online shopper a Walmart credit card and IRA solicitation?
Recent entrants into the workforce are not overly impressed with their parents’ or their grandparents’ financial advisors in most cases. This could be the time for Google retirement plans.
Fred Barstein, Contributing Editor to RPA Edge at Wealth Management.com, recently addressed these topics in his weekly column, 401(k) Real Talk. The concept of large tech breaking into the retirement plan space may be just around the corner. Many are oblivious of the change that would occur with one of the behemoth’s (Google, Facebook, Apple or Twitter) entering the retirement space. See what may be in the cards if the financial services industry continues to play by their archaic standards and rules.