Rollover IRA Training for Newbies
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I have been in the biz 9 years…4 1/2 as a bank and wirehouse
broker…the other 4 1/2 at Fidelity where I worked in rollover space.
My
expereince has tought me that most advisors are good at rolling the
smaller company 401k plans…but dont do nearly as well when
targeting the fortune 500 companies…(Where they run into Fidelity,
Vanguard etc)…
I am considering setting up CD based seminars
where I cover the following topics. What do you guys think? If you
could pick the brain of someone who saw the rollover world from an
insider’s point of view…what would you like to know?
Here’s some of what I am planning on covering----
· Learn why 401k recordkeepers and NOT other advisors are your biggest competitors in the rollover space.
· Learn How no-load recordkeepers sell their services and play keep away from other firms (They retain as high as 80% of assets when clients leave)
· Advanced rollover strategies you will NEVER learn from your back office or wholesalers
· Discover how rollovers are processed. Many advisors are completely in the dark here. If you have ever told a client “Call your company to get the rollover paperwork” you are screwing up royally. We will show you why.
· Special tax treatments you must know cold
· Strategies on working with clients pre-59 ½. Learn several ways clients can access 401k money before 59 ½ WITHOUT rule 72T.
· Learn how you can rollover 401k assets from clients who have not left their company yet. We will teach you who you can target and why.
· The single most powerful question you can ask a prospect to encourage them to seek financial advice. I tested this over 1000 times.
· Discover the 2 sales which must be made before your prospect
· Learn what information you should be tracking from companies in your area. You need to know pitfalls of the major employers in your area. We will teach you need to track to boost your rollover sales.
· 3 minute rollovers – Learn how to process some rollovers in as little as 3 minutes so the check can be processed ASAP.
· The 5 biggest mistakes I have seen advisors make that have cost dearly.
· Learn which products work the best in the rollover space (Hint: Variable Annuities don’t get NEAR the market share your friendly wholesaler tries to convince you of) The no-load recordkeepers will tear them to shreds.
· How call-centers are set up at the no-load recordkeepers. Find out what they do and why its so important you know.
· Advanced strategies on highlighting the weaknesses of a prospects 401k plan.
· Why “Special tax notices” are used to stall the rollover process. Learn where to find the document to prevent your clients from having to wait to receive their money.
· Learn our special asset allocation strategy which cannot be employed inside 99.9% of 401k plans available today.
This is not a sales pitch.....I am trying to test the demand for this before its rolled out....feedback, etc...
Noggin,
Thanks for the input.
Can you think of anything else that I should add?
I am hoping to make it as thorough as possible.
Thanks
I think your list is pretty thorough as you have it. Good luck and send me a copy…
Actually sounds good. How are you going to distribute it as to try to keep it being copied and passed around the office??
Hey guys,
Thanks for the feedback. Which format would you guys think would be best?
Audio CD (With a transcipt of the call written)
or
A Written manual (book form)
I am debating doing both...
CD… I would love to get that. I would pay a premium. Once you send me yours I will send you mine. The title is so top secret that I can’t even write it down, but its about to print.
[quote=dalbroker]
Audio CD (With a transcipt of the call written)
[/quote]Audio CD with transcript. Make sure you practicea few times, and work
on the arrangement. Spoken word is very linear method of communication
so arrangement of topics is critical. Make sure to stay focused in each
section.
[quote=dalbroker]Noggin,
Thanks for the input.
Can you think of anything else that I should add?
I am hoping to make it as thorough as possible.
Thanks
[/quote]
I agree that the topic(s) would be interesting but most folks already know not to let the client call on their own to get the rollover paperwork.
Fidelity, Wachovia, etc...all have call centers dedicated to managing 401k, 403b, and 457k assets. Additionally, the good ones have dedicated teams to handle distributions. Thus, they do have an emphasis on retaining assets. Further, we all know that the "special tax notice" is a delay tactic and that it can generally be viewed online or it may be faxed the same day.
The biggest thing that most producers would enjoy hearing is how to take over the plan and become the broker of record on a "broker sold plan" and have the opportunity to have first right of refusal on client's leaving the plan with $25,000.
Either way...good stuff...but I believe that most producers would already have a grasp on some of the more basic topics in your outline.
[quote=menotellname]
[quote=dalbroker]Noggin,
Thanks for the input.
Can you think of anything else that I should add?
I am hoping to make it as thorough as possible.
Thanks
[/quote]
I agree that the topic(s) would be interesting but most folks already know not to let the client call on their own to get the rollover paperwork.
Fidelity, Wachovia, etc...all have call centers dedicated to managing 401k, 403b, and 457k assets. Additionally, the good ones have dedicated teams to handle distributions. Thus, they do have an emphasis on retaining assets. Further, we all know that the "special tax notice" is a delay tactic and that it can generally be viewed online or it may be faxed the same day.
The biggest thing that most producers would enjoy hearing is how to take over the plan and become the broker of record on a "broker sold plan" and have the opportunity to have first right of refusal on client's leaving the plan with $25,000.
Either way...good stuff...but I believe that most producers would already have a grasp on some of the more basic topics in your outline.
[/quote]How do you get the paperwork if the client doesn't call? In the past I've tried to get it and ended up being told that only the client can request the paperwork. This usually occurs when dealing with the larger "call center" vendors you mention. I've had better luck going to HR people at the client's company.
As regards the special tax notice, isn't that only normally an issue when you're talking about plans where the client can make a request to roll over via phone? And can't you instruct the client to say that they've received the tax notice?
Last but not least-I've been the advisor for a few plans in the past. In my limited experience I've found that unless the plan participant has a relationship with you and comes to you for guidance, the rollover is a fait accomplit and comes to you in the form of a written transfer request....so I would like to know how one has a "right of first refusal".
Appreciate your thoughts....
<span =“bold”>menotellname,
I agree that some advisors wont need the material…BUT you would be surprised how many vets…I am talking with 10-20 years of experience dont know this stuff. I have surveyed several friends all with lots of experience…you would be surprised how many did not know the basic stuff…Like I said it varies.
As far as pricing goes…I was thinking about pricing it at $150.
I appreciate everyone’s feedback…still trying to weigh if there is enough interest to do this…I am not doing this to make money…but it will take time to do this…
A big part of my motivation in doing this…comes from my experience at Fidelity. Lets just say I did not approve of their tactics and how they talk about other advisors.
[quote=joedabrkr] [quote=menotellname]
[quote=dalbroker]Noggin,
Thanks for the input.
Can you think of anything else that I should add?
I am hoping to make it as thorough as possible.
Thanks
[/quote]
I agree that the topic(s) would be interesting but most folks already know not to let the client call on their own to get the rollover paperwork.
Fidelity, Wachovia, etc...all have call centers dedicated to managing 401k, 403b, and 457k assets. Additionally, the good ones have dedicated teams to handle distributions. Thus, they do have an emphasis on retaining assets. Further, we all know that the "special tax notice" is a delay tactic and that it can generally be viewed online or it may be faxed the same day.
The biggest thing that most producers would enjoy hearing is how to take over the plan and become the broker of record on a "broker sold plan" and have the opportunity to have first right of refusal on client's leaving the plan with $25,000.
Either way...good stuff...but I believe that most producers would already have a grasp on some of the more basic topics in your outline.
[/quote]
How do you get the paperwork if the client doesn't call? In the past I've tried to get it and ended up being told that only the client can request the paperwork. This usually occurs when dealing with the larger "call center" vendors you mention. I've had better luck going to HR people at the client's company.
As regards the special tax notice, isn't that only normally an issue when you're talking about plans where the client can make a request to roll over via phone? And can't you instruct the client to say that they've received the tax notice?
Last but not least-I've been the advisor for a few plans in the past. In my limited experience I've found that unless the plan participant has a relationship with you and comes to you for guidance, the rollover is a fait accomplit and comes to you in the form of a written transfer request....so I would like to know how one has a "right of first refusal".
Appreciate your thoughts....
[/quote]
Joe, Joe, Joe...I do not tell the client to call. Do you trust others to do your work? You do understand how this internet thingy works, right? Well then...a large number of companies allow paperless distributions by the participant logging into their account online. If this is not possible then the client and I call together (that new 3-way technology is amazing) and even then many distributions can be processed over the phone. All I have to do is have the client view the special tax notice...which is often available online or the custodians rep can fax it to me.
*sighs*
Do you simply tell your client to call?
The special tax notice is almost universally required nowadays and it is NOT simply a "phone thing". They send the special tax notice in hardcopy form even if you and your client are filling out the paperwork.
Finally, Joe...when a broker sells a plan and then allows a third party to service the plan then the broker holds all the cards. At my former stop the broker that sold the plan had three options:
1) Demand that he handle all the distribution requests. (this is kind of silly when you look at the numbers...about 70-80% of all distributions are cash outs; notice I didn't say 70-80% of the assets, Joe). Thus, you (or your staff) would spend a lot of time handling requests for distribution paperwork if you went this route and make very little $$$.
2) Request that he handle all distributions of $25,000+ and that all lesser distributions be handled by the custodian's service center. (this is probably the most efficient route to accessing reasonable rollovers)
3) Allow the custodian to handle all distribution requests. (not too smart if you want to retain any of the assets yourself)
[quote=dalbroker]menotellname,
I agree that some advisors wont need the material..BUT you would be surprised how many vets...I am talking with 10-20 years of experience dont know this stuff. I have surveyed several friends all with lots of experience...you would be surprised how many did not know the basic stuff...Like I said it varies.
As far as pricing goes.....I was thinking about pricing it at $150.
I appreciate everyone's feedback....still trying to weigh if there is enough interest to do this...I am not doing this to make money...but it will take time to do this...
A big part of my motivation in doing this...comes from my experience at Fidelity. Lets just say I did not approve of their tactics and how they talk about other advisors.
[/quote]
$150 is surprisingly cheap if you are going to divulge information that would educate a rep on how to take over a mature plan. Being the broker of record on a seasoned plan would be the ultimate goal, not simply selling a new plan.
If your information allows a rep to quickly and efficiently take over a mature plan then your price is at least 10X too low.