The financial industry is experiencing a surge in rollover activity. According to the Financial Research Corporation, an estimated $2.3 trillion will be rolled over from employer retirement plans into individual retirement accounts (IRAs) from 2003 to 2010. There are many ways you can position yourself to capture these assets. Here are ten strategies to help you expand your business.
- Build Name Recognition. Familiarize yourself with the plan provisions of large employers in your area. Offer to publish quarterly newsletters to assist employees of these firms build and invest in their 401(k) plans. When these employees prepare to retire, you will have earned their trust through name recognition.
- Target a Niche Market. There are approximately 23 million participants in 403(b) plans, 457 plans, and the Federal Employees Retirement Systems (FERS) Thrift Savings Plan. Organize seminars at local nonprofit organizations, such as universities and hospitals, where employees hold assets in 403(b) plans. Also, contact state and local governments where retirement assets are in 457 plans.
- Ease Transitions. Monitor local news media for layoff announcements. Contact the human resources departments of firms that are letting people go. Offer to conduct seminars designed to help affected employees make educated choices about their retirement assets during the transition.
- Request Referrals. Make acquaintance with a local, reputable bankruptcy lawyer(s) and ask for referrals. Through the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, IRA assets are exempt from a debtor’s bankruptcy estate up to a limit of $1 million. Remember: SEP and SIMPLE IRA plan assets, as well as assets in a traditional IRA that were rolled over from a qualified plan or 403(b) account, are not subject to the cap.
- Empower Retirees. Hold educational forums for preretirees and retirees. Among other topics of interest, include a postretirement budgeting seminar. Provide ample information on the benefits of a Rollover IRA.
- Host a Rollover Social. Invite prospects and clients to a rollover mixer at a local restaurant to talk with you and their peers about retirement and rollover issues. Collect business cards—for a random drawing for dinner at the establishment—to build a “Rollover Prospect” database.
- Expand Your Network. Partner with career management and outplacement firms. A list of these firms can be found in the Directory of Outplacement and Career Management Firms published by Kennedy Information. To purchase and download the data for firms in your area, conduct a geographic search at www.kennedyinfo.com.
- Share your Knowledge. If you are a member of a professional organization or networking group, present your rollover expertise to its leaders. Offer to host a seminar for the benefit of members.
- Establish a Presence. Identify key geographic areas that are home to companies within a major market segment. For instance, California’s Silicon Valley is saturated with high-tech firms. Build your knowledge of these locales and become an expert in handling rollovers for professionals in each segment.
- Conduct a Legacy Planning Campaign. Conduct a targeted direct-mail campaign to clients and prospects who express interest in leaving a financial legacy to their heirs. Pershing’s multigenerational IRA provides the greatest number of beneficiary options available in the industry. Use the marketing letter on page 6 to launch your campaign.
The information contained in these materials is believed accurate at the time of writing but is not guaranteed. Delta accepts no responsibility for its use whether in whole or in part.