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Notes about Prospecting for Small Business Retirement Plans (SBRP)

First, familarize yourself with how business retirement plans work by visiting Retirement Tax Shelters (AFW S.3.1).

Watch Prospecting for Small Business Retiremeont Plans VIDEO

  • Prospecting for SBRP should be done as a "...by the way". It is not recommended to "go out and proactively prospect" for SBRP", but instead keep your eyes and ears open to opportunities to bring it up.
  • Keep it simple. You don't have to know everything to talk about SBRP, but just enough to spark an interest and set an actual appointment. Remember, just get them to take a look.


Focus on Four SBRPs


1) SEP IRA Plans

SEPs are a ery good option for 1099 independent contractors (such as Financial Advisors!) and S/C Corps with just one employee (the owner).


2) Simple IRA Plans

Watch this video on how to use Simple IRAs to build your business. VIDEO

Simple IRA plans are good for smaller companies, usually between 2 - 10 employees.


3) Solo 401k


4) 401k Plan

Watch Finding 401k prospects by American Funds VIDEO

Watch Earn the 401k business by American Funds VIDEO

401ks are usually for medium to large sized companies (there are exceptions) and/or those who want to save a lot more towards retirement.


Benefits of SBRP


Promote these Two Beneits


  1. Save for retirement in a tax-advantages account, after having fully-funded their IRA.
  2. Attracting and retaining employees.


Three Benefits to the Advisor (you)

  1. Protect/retain your existing relationships and assets.
  2. Generation consistent cashflow (ARR).
  3. Get new prospects, and ell ancillary business (IRAs, 529 plan, term life, living trusts etc.).


Prospecting Ideas


Offer to Select Funds for Employees

Anyone you meet, existing clients, friends of clients etc, offer to look at the their current 401k and help them select the best funds. This will give you an "in" to the retirement plan to take it over, and/or make them into a personal client.


Benchmark an Existing 401k

Thanks to Julian Rodriguez for this tip.

When meeting an business owner who already has a 401k as, "Have you recently benchmarked your 401k?" They'll probably ask what you mean. You'll respond with, "401ks, and the rules sourrounding them, change rapidly so you probably do an evaluation every year or two. I can do that for you at no cost."


Cold 401k Small Business Lunch & Learns

Hello my name is Michael Thomas and I am a local financial advisor - I am looking to expand my business in the area by meeting some of the local business owners and their staff.

What I do is “lunch and learns”, where I pop by during a lunch hour with a catered meal for your staff and talk about planning for retirement.

My goal is to make a complex subject simple, understandable to the layman and explain everything in plain english. I promise that I take a soft and relaxed approach. At best I may be able to provide some help to some of your employees, at worst they will get a fundamental education on IRAs, 401ks etc.

Either way, lunch is on me.


Master Your Company's 401k

First, learn everything about the 401k of the company that you work for. Be the go-to expert. You want to spread the work and begin getting the 401k-to-IRA rollovers as employees leave the firm.


401K Advertisement

Did you forget about your 401k? Have you changed jobs recently or maybe even years ago and have a 401k plan that is still with a former employer?

When you leave a company you have the ability to take your retirement plan (401k, 403b) with you. Moving a 401k into a self directed IRA account may enable access to more financial options and features like lifetime income guarantees.

Perhaps I can help. I've been in the financial industry for over 26 years, and supervise over 30 professional Advisors. 401k rollovers is an area I specialize in, and I invite you to come in and speak with me for a while. I'll review your 401k with you and if I think it is well-suited to your long-term goals I'll gladly tell you so, and be on my way.

If, on the other hand, I think improvements could be made with your 401k I'll explain why, in plain English, and recommend some alternatives.

Email or call me to arrange a complimentary appointment, either by phone or in person.


401k In-Service Withdrawals

Some 401k plans allow an employee to rollover their 401k balance into a personal IRA while they are still working there. The representative should have his/her client verify whether a particular employer currently offers in-service distributions.


401k Resources