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Grow Your Income With the Small Business Owner Crossover Opportunity

Issue 21, 2011

Offering employer-sponsored retirement plans to small business owners can help you deepen client relationships and generate a steady flow of new assets for you to manage.

According to Pershing's study, "The Secret Knock: Unlocking the Retirement Opportunity," investment professionals who work with small business owners can capitalize on the crossover opportunities that exist among their clients. Specifically, 61% of small business owners have the same investment professional for their personal finances as well as for their business retirement plan assets. Of those working with multiple financial professionals, 38% said they would consolidate with one financial professional.

Start With Your Client Base
Begin with your existing clients to identify potential candidates for a small business employer plan.

  • Identify clients who are self-employed or own a business. Doctors, lawyers and accountants are targeted by most financial professionals, so consider businesses that may have steady cash inflows, such as auto body shops, gas stations or drycleaners.
  • Help determine the simplest plan that meets the needs of the owner, the business and the employees, such as a Simplified Employee Pension Individual Retirement Account (SEP-IRA), SIMPLE IRA or Individual 401(k).
  • Ask small business owners about their satisfaction with their current plan including their personal deferral limit, costs and service from their providers.
  • Identify clients who work for a small company who could refer you to the business owner or individual responsible for the company’s retirement benefits.

Resources From Pershing
Visit the Retirement Toolbox on under Employer-Sponsored Plans to access these materials:

For more information on the employer plans available through Pershing, go to Retirement under Investment Solutions under Resources on NetX360.

For Professional Use Only.

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