Burak Alpaslan, Co-Founder, Partner, and Financial Advisor at Vital Planning Group LLC
Working with a specialist rather than a generalist offers significant advantages for plan sponsors, particularly in the complex and regulated world of retirement planning. Specialists bring a depth of knowledge and expertise that generalists may lack. They are well-versed in the nuances of plan design, compliance, and fiduciary responsibilities, ensuring the plan is effective and adheres to all legal requirements. This expertise helps prevent costly mistakes and reduce the risk of penalties, maintaining the plan’s integrity and trustworthiness.
Moreover, specialists are adept at staying abreast of the latest industry trends and legislative changes. This enables them to provide cutting-edge solutions and proactive strategies tailored to the specific needs of the plan and its participants. For instance, a specialist can offer insights into optimizing plan features such as automatic enrollment and escalation, significantly boosting participation rates and overall savings. They can also deliver targeted financial education programs that address the unique concerns of different employee demographics, enhancing participant engagement and satisfaction. Ultimately, partnering with a specialist leads to a more robust and effective retirement plan, benefiting both the plan sponsor and the participants.
Burak Alpaslan, Co-Founder, Partner, and Financial Advisor at Vital Planning Group LLC, used a convincing metaphor during a conversation with Fred Barstein, Founder & CEO of TPSU/TRAU & 401k TV. Burak compared the distinction to that of general physicians and specialized surgeons, emphasizing that retirement plan advisors (RPAs) bring specific expertise and proactive guidance to plan sponsors and participants. Fred and Burak also explored the value of RPAs in the convergence of wealth, retirement, and benefits management. Burak explained that while wealth advisors can manage individual wealth effectively, RPAs provide essential support in running retirement plans efficiently, reducing risks and costs, and enhancing participant engagement and outcomes. They also discussed the growing interest among plan sponsors in integrating financial planning and wellness services, and the benefits of RPAs working closely with participants to improve their financial readiness for retirement.
Read the Full Transcript Here:
Fred Barstein:
Greetings. My name is Fred Barstein. I’m the CEO and founder of TPSU and 401k TV. I have the privilege of being with one of our TPSU adjunct lecturers, as well as a CKP, Burak Alpaslan. And he is the co-founder and partner at Vital Planning, which has been around for about 20 years. And he has a 32-year history in the financial services industry. And the reason that he looks so young is he is Ironman and a vegan. So, if any of you want to look like Burak, you’re going to have to run triathlons and give up meat and chicken. So, with that, Burak, welcome to our program today.
Burak Alpaslan:
Hello, Fred. Happy to be here.
Fred Barstein:
One of the questions we get, and I know this is something that you cover, there are a lot of advisors out there. There’s 288,000 financial advisors, but only 12,000 that specialize in the 401(k), 403(b) retirement area. What’s the difference between that wealth advisor and what we call a retirement plan advisor or RPA?
Burak Alpaslan:
Well, what is the difference of being a specialist in any field? I’ll draw a direct comparison to the medical field. You may have a lot of physicians out there, but not everybody is a specialized surgeon. So if you are looking to go for a check-up to a primary care physician, you cannot expect them to operate or perform a brain surgery for you or a heart surgery, for that matter. I think that pretty much is the best comparison I can draw the difference between a specialist and a generalist.
Fred Barstein:
And so what’s the value for a plan sponsor of working with a specialist versus a generalist?
Burak Alpaslan:
Great question, Fred. Thank you for asking. I would say they’re two things: experience and expertise. So, obviously if you’re looking for a generalist, they may actually take a stance of being involved certain aspects of a retirement plan, but it is up to the specialist to take a proactive role and really guide, not only the plan sponsor, but at the same time, plan participants in the best of their ability in a fiduciary capacity.
Fred Barstein:
Right. Now, a lot of wealth advisors are starting to become interested in the 401(k) because their clients are starting plans and we’re seeing the convergence of wealth, retirement, and benefits at work. Some of these wealth advisors are able to do a good job on the plan level, not because they have the experience or expertise, but they outsource it to third parties who are very experienced at the plan level. And then when it comes to working with participants and doing financial planning, they have a lot of experience on that. So, what’s the value of having both as opposed to one or the other?
Burak Alpaslan:
Yeah, so just like any specialty in qualified plan universe, may it be 401(k), 403(b), what have you, the specialist advisor, again, brings value in the form of experience and expertise to a degree to take the plan sponsor by the hand, assist them from day-to-day operations of the plan, to all the way making sure that their plan remains compliant as well as they are fully focused on pretty much three things: making sure that the plan runs efficiently. Number two, the potential risks and fees and expenses are reduced, and most importantly, participants are engaged and they are really focused on improving retirement plan outcomes. As such, from an engagement perspective, the value a specialist retirement plan advisor brings is significantly more important than just a wealth advisor who is managing wealth on a one-on-one basis.
Fred Barstein:
Now, I know that, Burak, you have both in your group. Are you finding, more and more, are you seeing a growing interest for your plan sponsors to have you and your group work with participants? And if so, why? If it is growing.
Burak Alpaslan:
It is a great question and you’re right on. It is in increasing demand right now. Obviously, if somebody is moving on because they can, not that they have bills to pay, they have to remain employed at an advanced age, retirement age, they cannot be fired. That is certainly against the law. But at the same time, if a senior person is confident and comfortable that they can afford to retire because they were able to plan for that, they are certainly in a position to move on voluntarily and the company can hire a junior person, reduce the cost of retention, and really improve their bottom line.
As such, financial planning services overall, financial wellness, which we deliver incredibly well to our qualified plan clients, are becoming more and more prominent and more important than ever.
Fred Barstein:
Very good. Well, thank you, Burak. That’s all the time we have today. And for those of you that are in the New York metropolitan area, we’ll be doing many programs on TPSU. You can get all of the wisdom that you hear over a five-hour program in person. And I know that Burak’s group does deal with plans all over the country. So if you want any help with your retirement plan, your employees, and you want to know how to run an Ironman or change to a vegan diet, this is the person that you want to talk to, so thank you-
Burak Alpaslan:
I charge extra for those two additional.
Fred Barstein:
It’s well worth it. Well worth it. So thank you, Burak, for joining us.
Burak Alpaslan:
Thank you very much, Fred. Have a great day.
Fred Barstein:
And thank you for watching 401k TV. Thanks. Stay tuned …
