With the present financial situation, plan rollovers have become a very important factor for advisors who realize that the rollover sector is a way of boosting their firm’s asset base. Potentially there are good sums of money in the pipeline, with lots of financially fit clients seeking help and advice, since they are planning on leaving the plan that is offered by their employer.
The truth is that big money is being moved to IRAs from various qualified plans, and even bigger monies are expected in the future. Plan sponsors are however apprehensive about the fact that not everyone is getting a qualified advisor. Advisors are cherry picking the high net worth clients, and leaving the rest of the participants floating on their own.
In reality according to industry experts, plan sponsors who are thinking of going for a rollover solution, are looking for advisors that can give them three important things: first that the advisors will offer the same service to all the participants, notwithstanding their financial worth; that they offer a service model that quickly and efficiently deals with the assets not on the market; an open market place for the IRA providers, in such a way that no particular IRA providers are recommended.
With some careful decision making, and good cooperation between the plan sponsor and the advisor, the rollover can act as the missing link between individual wealth management, and advisory services.
Advisors are also provided with electronic systems and programs to help them with the record keeping process, to help them handle rollovers more efficiently and effectively.
Reference: http://www.planadviser.com/magazine/article.php/4249
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