On Valentine’s Day, it’s customary to express caring with a gift of chocolate and roses. But you may get some funny looks if you try that with plan sponsors. When demonstrating your commitment to clients, what you really want to offer them isn’t flowers or foil-wrapped bon bons — it’s fee transparency. That’s because trust is the cornerstone of most lasting relationships, even those steeped in fiduciary responsibility.
Promote Greater Fee Transparency
Annual benchmarking is a critical practice that underscores an advisor’s commitment to fee transparency. By conducting thorough yearly fee studies — providing sponsors with a detailed analysis of how their plan stacks up against similar plans in the broader market — you can distinguish yourself from advisors who only provide live-bid benchmarks every three to five years. This practice not only showcases dedication to maintaining reasonable fees, but it can also help solidify your role as a reliable steward of the client’s financial best interests. Using PlanFees’ suite of robust benchmarking tools, advisors can offer professional, customizable reports and demonstrate a clear commitment to transparent, competitive and reasonable retirement plan fees — and help plan sponsors uphold their fiduciary duties.
Value Articulation: The Link Between Cost and Service
When it comes to fees, advisors must go beyond simply enumerating costs; they need to connect each fee to the specific service provided and demonstrate how all services help the sponsor achieve more favorable plan outcomes. This also means outlining how advisory services, strategic planning, investment selection and fiduciary services contribute to the overall successful management of plans. The lowest fees possible may not always be in a plan’s overall best interest — those with more complex needs may require additional services. Prism365 lets you input advisory services and frequencies — and even add in any custom services you offer. This not only helps validate the advisor’s fees but also reinforces their value proposition in a crowded marketplace.
Simplifying Statements: Enhancing Understanding Through Clarity
The complexity of fee structures can be a source of confusion for plan sponsors. To combat this, simplifying statements is key. Advisors should present fee information in a clear, digestible format, devoid of excessive industry jargon or technical language that could obfuscate understanding. PlanFees’ tools enable advisors to create easy-to-read reports and fee data visualizations that break down fees into understandable segments. Transforming complex data into straightforward narratives aids in comprehension and builds a foundation for more informed decision-making and long-term client satisfaction.
Care, Commitment and Communication
Fee transparency may not come in a heart-shaped box, but it’s a gift of true and lasting value to plan sponsors. It’s a declaration of an advisor’s commitment to a relationship built on clarity and trust. Ensuring that every component of advisory service, especially fee structure monitoring, is communicated regularly with precision and integrity, helps create a strong foundation for lasting client relationships — and reflects the essence of a truly committed partnership.
