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 retirementpowerplay.com under Employer-Sponsored Plans to access these materials:
- Use the Small Business Retirement Plans Selection Guide to help identify potential plans for your clients.
- Access the new Small Business Retirement Plans Brochure to help illustrate the benefits of establishing a plan and options to consider. You can combine it with Employer-Sponsored Plan factsheets, which are also in the Retirement Toolbox.
- Review Overcoming Common Objections to Establishing a Retirement Plan to help you in client conversations.
- Read Key Dates for Employer-Sponsored Plans and the Employer-Sponsored Plan Contribution and Social Security Guide to help you provide guidance to your clients.
For more information on the employer plans available through Pershing, go to Retirement under Investment Solutions under Resources on NetX360.
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