Talked to two major Recordkeepers this week and both of them said they are pricing their record keeping for plans with $20MM or more at a loss right now. What does that mean for the long term of 401(k) record keeping?

likeuplifting
Posting as :
works at
You are currently posting as works at

I completely agree they are pricing those plans at a loss. Empower and Fidelity are using that as a loss leader for additional services like rollovers. Their target capture rate is 70% of rollovers leaving the retirement plan.

like

Interesting and shocking

Group plans 🤷‍♂️

I’m seeing this too. It’s the answer to some in acquisition mode. Instead of buying others out (like Empower is), some RKs are pricing ridiculously low and likely hoping to pick up revenue on managed accounts or rollovers.

Investment companies have been pricing their record keeping at a loss for years. They do this in order to get the assets and make their money on the investments. It’s a loss leader.

Related Posts

Please shed some light on how year end compensation is evaluated and how bonus is determined? I really don’t know where I stand and where I should put more of my effort from getting underpaid

Working with a friend on the best way to get into teaching. Is subbing a good way to “get my foot in the door?”

like

Anyone have and idea on the salary expectation of this position at JPM? Private Client Investment Associate - Select Advisor Group

like

Thoughts on CMI?

like

How soon is too soon to lateral (if you’re a three week old lateral)

funnylike

What should a senior AD / ACD ask for per hour / day going freelance?

like

What are other account directors making right now?

like

How much does a lead data engineer or lead software developer make in Vancouver with around 10YOE? I recently moved to Canada and I am not sure about the pay scales in the area.

like

Aya phir appraisal?
on a scale of 1 to 10 how dissatisfied are you?

What did everyone think of Tim’s note to staff?

like
like

Random but is there anyone in or around Atlanta where I can go play with golden retriever (or corgi) puppies lol

like

Has anyone started a non profit before? What is the process to register or the best way to get it set up legally?

like

I'll switch to a startup as the only data engineer and will closely work with all the Head ofs + the CTO.

Any advice/books/... on stakeholder management at that level? Especially when things fail/discussing budgets/new hires etc.

like

Hi! Anyone at Accenture willing to give referral for Public Sector Consultant posting in Ottawa? Currently a SC at Big4 in GPS. Happy to provide more info and share resume!

like

Is there anyone with 5-6 yoe in totally different tech who is able to land job in sde profile by taking scaler academy course. Is this course worth for 2.5 lacs being from totally different technology like sap abap.

like

Received offers for cybersecurity consulting as a new grad from KPMG and EY. EY’s total comp was slightly higher than KPMGs. I was wondering which company will provide a strong technical background for me to jumpstart my career, thanks!

like

Registered my new bike today! What a DMV experience! I’m so ready to go ride I’m want to skip work. 🙃

like

From perspective how much does a typical senior government contracts administrator make? Offer was presented as 115k base location in VA from Lockheed Martin - friend has plenty of experience and a secret clearance.

like

Charlotte senior 1 FDD/TAS salary? Please note if you switched internal or external as well. Thank you!

like

Additional Posts in Retirement Plan Advisors

How big is your RP book? Do you consider yourself a specialist?

like

Does anyone partner with any 401(k) robo-advisors like Guideline, Vestwell, Human Interest, Ubiquity, etc.? How are they compared to more established 401(k) providers? Pros/cons to any or all?

like

How do you get appointments with plan sponsors? They are hard to get in contact with and then 401(k) seems so low on their priority list or they "are happy with" (don't know about) their plan.

like

Hey all! We are looking to add to our retirement plan services team. This is an admin/support role with no sales goals or cold calling. We are a $15b RIA with a $400mm retirement plan book to support. If you know of anyone who may be a good fit, please reach out. Great opportunity for growth! Comp is $75k-90k base with a bonus on top. Great benefits, flex schedule.

like

I have a village with 3 employees in a 457 plan. They want me to take over plan. Assets are under $200k. Who would take that?

likehelpful

Best place to work as a retirement consultant? Empower, Fidelity, Vanguard, T. Rowe, Lincoln, etc? New to field and want to get a sense of where my salary is at compared to competitors.

likehelpful

Which firms do good actuarial work for cash balance plans?

I’m 9 years in. Currently taking the educational requirement for CFP through American College. I feel like I can’t focus because I am not really learning anything. Any tips to keep eyes on prize?

like

What’s your tax strategy to minimize self employment taxes?

like
like

Just started getting into the ESP’s have most you expanded your business solely into ESP’s or do you still meet with individual clients that are not part of your group plans also?

recently hit the one year mark with my company and wanted to see about negotiating a raise, was curious to see what other people were getting paid for a similar role. I handle inbound calls for 401Ks and Pensions, processing transactions and investment changes. Currently at $60K a year. What are people making at other places working something like this?

likehelpful

Which recordkeepers do you think are best in the micro plan market?

Looking for:
- Open-architecture
- Reasonable fee
- User-friendly online portal
- Good servicing
- Allow own model creation

like

Does anyone have thoughts on RPAG? Is it worth the cost? Is there something better?

What is the future value proposition of the 401k Advisor in your opinion?

likehelpful

So... how can I become more involved with MEPs?

What percentage of your clients are choosing to permit the CARES Act provisions into their 401(k) Plan?

like

Which Investment Analysis and Reporting System do you use? What are the pros/cons?

Recently attended an FA conf. where there was discussion about 401(h) plans & their tax advantages.
I know a variety of 401(k) providers available via my B/D but don’t know of 401(h) ones. Do you ?

So are there any members of this thread that manage retirement plans?

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal