Retirement Advisor Specialists Make Knowledgeable Contributions Make Knowledgeable Contributions
Retirement Plan Advisors make knowledgeable contributions to plan sponsors seeking guidance for their DC plans. However, not all recognize the importance of engaging a specialist—someone well-versed in the company’s industry, comprehending employee needs, and fluent in the industry’s vernacular. Having an advisor who specializes in their specific field can significantly enhance the efficacy and relevance of the advice provided, ensuring that the retirement plan is finely tailored to both the employer’s and employees’ unique goals and objectives. This specialization bridges the gap, fostering clear communication and a more effective strategy for the future.
At the conclusion of The Plan Sponsor University (TPSU) Fiduciary Education Program held on the campus of The University of Pennsylvania, Fred Barstein, founder, and CEO of TPSU, interviews Garrick, a professional in human resources in the manufacturing and construction industry. Garrick sheds light on the critical role of having an advisor who comprehends the intricacies of their industry and the specific employee demographic.
The key takeaway is the vital link between effective advisor understanding and the ability to communicate, respond promptly, and tailor strategies that suit the unique needs of the employees and the business. Garrick also stressed the value of referrals in finding the right advisor and emphasized how a knowledgeable advisor proactively suggests improvements, demonstrating their dedication to enhancing the plan’s effectiveness. Additionally, they discussed the positive impact of a diverse 401(k) committee, a reflection of a forward-thinking approach. This conversation underscores the pivotal role of a specialized advisor and the importance of continual improvement and inclusivity in retirement planning.
Read the Full Transcript Here:
Fred Barstein:
Fred Barstein with 401kTV. Just completed a TPSU program at the prestigious University of Pennsylvania here in downtown Philadelphia. I’m here with Garrick. Welcome Garrick.
Garrick:
Thank you.
Fred Barstein:
Is it okay if we ask you a few questions?
Garrick:
Absolutely.
Fred Barstein:
Okay. Before we do, just tell us a little bit about your company, the size and your role there.
Garrick:
Sure. I’m in human resources. It’s a two-person department. We have about 200 employees. Of those 200 employees, about 106 are eligible for our 401(k) plan.
Fred Barstein:
Okay. And you’re in the manufacturing construction business?
Garrick:
That’s correct.
Fred Barstein:
Right. One of the things you brought up was about the importance of having an advisor who understands, if not your industry, your type of employee. Why do you think that’s important?
Garrick:
I think it’s important because you can go out and get advisors anywhere, but to have one who truly understands our marketplace it’s very unique. We’re outside Philadelphia and having an advisor who truly understands the manufacturing/construction marketplace, but also understands our unique business and understands the type of employees that we have has been critical to us.
Fred Barstein:
How did you find that person?
Garrick:
It was actually a referral from leadership within our company. Some people would say that the person then just has the in automatically, but this person works very, very hard to bring things to the table. Most recently, proactively brought to the table that we needed to look at the website, the front-end support for the participants, and presented a good group of four or five organizations to look at. We’re actually going through that process right now.
Fred Barstein:
So as a result of having an advisor who understands your employees and your industry, what’s the effect of that?
Garrick:
I think the fact that the employees feel like they can reach out to this person and that he and his team, and that they’ll get back to them in a quick manner. As a matter of fact, while I was in this meeting, I texted an employee who had reached out and I said, “Hey, have you had a chance to get back to the advisor?” The employee said, “Yes, I did. He got back to me right the same day.” Again, he has lots of different clients and things, but he’s on top of it. If he’s not available, he gets somebody else to reach out.
Fred Barstein:
Right. Great. Final question; a couple of things you picked up here that you want to try to implement when you go back to the office.
Garrick:
Sure. I think definitely taking a look at the chart, the action plan, and kind of figuring out what we could do over the next 30, 60, 90 days. I think also just understanding about how we can especially look at our 401(k) committee to make sure it’s diverse.
Fred Barstein:
Right, like we’ve heard from Curtis.
Garrick:
Exactly.
Fred Barstein:
Very good. Well, thanks for your time today.
Garrick:
Thank you.
Fred Barstein:
Thank you for watching 401kTV. Please stay tuned.
