More 401(k) plans are being created because of state rules and tax incentives, but most wealth advisors aren’t rushing to get involved. They usually focus on managing wealthy clients’ money and don’t have much experience with the rules that govern retirement plans. Plus, they prefer using technology like AI to work more efficiently rather than taking on the extra work of handling 401(k) plans.
Still, with so many new plans coming, wealth advisors might have to help their clients if asked. There are specialists called Retirement Plan Advisors (RPAs) who manage these plans and have the resources to do it well. Many wealth advisors want an easy, hands-off way to connect their clients with these experts without doing the heavy lifting themselves.
New tools and services are making it simpler for wealth advisors to work with retirement plans, especially smaller ones that big advisors often avoid. By helping clients with their 401(k)s, wealth advisors can find new ways to grow their business and help clients build wealth at work. So, while it might seem tricky now, there are good reasons and better support for wealth advisors to get involved in the 401(k) world.
Read more insights in Fred Barstein’s latest Wealth Management column, “Will More Wealth Advisors Gravitate to 401(k) Plans?”
