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@SFC - appears you seem to be all knowing. Congratulations! That’s why I’m taking the time to speak with the OP to see if this is something that is worth proceeding with for him. You sound bitter and it’s understandable. But remember, harboring anger is like drinking poison and expecting the other person to die. Instead of harboring resentment, help educate, pay it forward and make our industry better.
I partnered with Alliance Benefit Group and ABG Portfolio Strategies and took over a $45 million 401(k) plan that was with Fidelity direct. They received no employee education from Fidelity. Fund lineup was missing 10+ asset classes and expense ratios were higher. They were all in at 79 basis points with Fidelity. Moved to ABG platform with Fidelity institutional as custodian. ABG Portfolio Strategies signed on as 3(38). Brought in complete employee educational program, paperless admin, smart phone app, individual participant investment advice, signature ready 5500. With institutional fund pricing came all in at 49 basis points. I acted solely as a solicitor to ABG and receive annually 40% share of advisory fees. Relationship is fully disclosed to plan sponsor. No headaches!
Senior Financial Counselor, it’s amazing that you were born with the knowledge to be a specialist without ever having to learn before getting into that space. I didn’t know 401k specialist traits were inherited through genetics.
SFC 1. I am already admitting I don’t have the knowledge required. Instead of telling me I’m going to be ineffective for the plan sponsor, maybe tell me some areas I need to learn inside and out so that doesn’t happen.
That’s my point SFC, he came here for help not a comment about how unprepared he is. Try helping with advice instead of riding your high horse through the comment section.
To make the 401k industry better, plan sponsors should go with Fidelity directly, no advisor, and throw on Mesirow 3(21) or 3(38) fiduciary coverage. At 3-5 bps it would save tons compared to paying an advisor.
@SFC - I’m calm. Don’t play the ‘whoa is me’ card when you started slinging darts. I’m merely pointing it out. You’re not the villain - you just need a little educating as we all do. I could not disagree more with your ‘Fidelity +3(21)/3(38)’ comment, but everyone runs his/her practice differently. For the record, I think EIA’s are a scam. I would be happy to speak with you about 401(k)’s or anything financial without reservation. No sense in holding a grudge - we’re here to help one-another grow.
Look. I am mostly interested in learning. I do not know if I am even going to venture into this, hence looking for some help. Im really trying to figure out if this is something I can really dive into. For what its worth, I have been approached by these individuals and asked if it’s something I can hep with and I am not actively soliciting employers to run their plan.
Talk to your product partners. They will provide the training the businesses when the time comes.
Since we’re not in the same territory - I’d be happy to tell you what to look at, what to address and how to manage the Advisor relationship. Happy to pay it forward and make the industry better. Let me know if you’d like to speak - spent 9yrs with one of the top-3 Recordkeeping companies before going over to the Advisor side.
Ed Jones - I wasn’t born with 401k knowledge, I had to cut my teeth from the bottom up. And I certainly earned squat when I knew nothing. Advisors entering the space for the first time are learning it coming in at the top and taking compensation of 30-50 bps, sometimes more, as they learn on the job. Nothing wrong with having to learn something, but spin the table and see if from the sponsor and participants’ perspectives. They’re paying someone a premium for entry level learning. Maybe OP will feel compelled to take lower comp during their low value training period; we cannot know. I’m painting with a broad brush by stating the advisor is the big winner in this scenario at the sponsor and participants’ expense, but I don’t mind generalizing to make a greater point.
Find an ERISA 338 Partner
I know it’s unlawful to log in as a client. I was trying to clarify FA3’s question. I’m still curious to know if that’s what FA3 is doing.
What state are you in?
For figuring out what I need to know about 401ks. Specifically if I am the advisor, what is my responsibility in on investment policy statements or education for the plan.
In WI
I would look for an Alliance Benefit Group LLC member firm to partner with if this is a new area for you. I partner with one in Michigan and have $65 million and growing 401(k) plan assets with them. ABG, nationally has $80 plus billion in assets under management and is one of the nations largest independent retirement plan providers. Schwab and Fidelity are their largest custodian partners.
John Hancock gave me some great info on language to use. They talk about the responsibility of the plan sponsor, what you Add as an advisor
FA 2- I would definitely be interested in whatever direction you could give me. How can I contact you?
If you have an email that I can use, I’ll shoot you over a quick email so we can chat Monday.