The schedule I is the pulse of the money flow in the plan. Here you can create a spreadsheet and input three years of plan contributions, distributions, expenses and investment income, and then calculate and benchmark the internal rate of return as if it were a pooled retirement plan. This analysis will indicate the plan's asset performance against an index, such as the S&P 500. While the plan may be self-directed, this calculation may uncover a lack of employee education or poor investment options in the plan.
These are just a few of the opportunities that the IRS 5500 Form provides for plan advisors. The Form contains a wealth of data that with research and relatively easy calculations can reveal openings to start conversations with plan sponsors about their plans and validate your expertise. You can increase your prospective leads by demonstrating the significant resources you and your organization have to create successful retirement experiences for plan sponsors and their participants.
Resources That Can Help
Resources that can help you use the 5500 Form as a marketing technique:
The 5500 Form data is public information, which can be found in a number of resources such as www.freeerisa.com, www.judydiamond.com and www.larkspur.
The 401k Coach (www.the401kcoach.com) has more tips and techniques on how to market using the 5500 Form. The 401k Coach tool, The 5500 and Beyond, a handbook for analyzing and interpreting the Form, is available on the website.
Charlie Epstein, CLU, ChFC, AIF, is the founder of The 401k Coach Program, which offers expert training for financial professionals to develop the skills, systems and processes necessary to excel in the 401(k) industry and facilitate successful retirement outcomes for plan sponsors and participants. He has frequently been named to 401kWire's Top 100 Most Influential People in the 401(k) Industry List and Top 300 Most Influential DC Advisor List and was recently named to the Legg Mason Retirement Advisory Council.