Ask for Statements. After May 31, 2012, when disclosure takes place, I recommend you request that every client with a 401(k) bring their statement in for you to review. You may find that many of your best clients are paying too much for their 401(k)s. You can help your clients, and yourself, by asking them to introduce you the 401(k) decision maker at their company. (You can look up a potential decision maker by seeing who signed the most recent IRS Form 5500 at www.efast.dol.gov.)
As someone who has been selling 401(k) plans for a handful of years, I understand that most plan sponsors have more pressing things to think about than their 401(k) plan. Getting a plan sponsor to focus on their plan has been a challenge. However, when their eyes are opened to how expensive their plan is and how poorly it has been managed, there will be a one-time chance for you to identify the problem, offer a solution and take over management of the plan. Once the plan has been fixed, however, I think much of the old sense of complacency will return and the grand avalanche of opportunity will have faded.
If you would like your piece of the three trillion dollar pie, now is the time to get ready. This opportunity will only come once.
Michael Lissner is a partner with Acropolis Investment Management LLC, a St. Louis based, fee-only wealth management firm, serving individual investors and 401(k) plan sponsors. Acropolis specializes in retirement planning and currently has over $750 million in AUM. For more information visit www.acrinv.com.
* According to the Society of Professional Asset-Managers and Record Keepers (SPARK), assets in 401(k) plans reached a record $3.075 trillion in 2010.