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Why do people willingly pay double for a latte served with a fancy logo when they can get one that tastes just as good down the road in a plain paper cup? Buying decisions are often about more than quality or even cost — they’re about associated perceptions, feelings, experience, and trust. In other words, those decisions are driven largely by brand.
In Cunningham v. Cornell University, the Supreme Court ruled that plaintiffs bringing a claim under ERISA for a prohibited transaction are not required to plead the absence of a statutory exemption at the outset. The case involved allegations that Cornell’s 403(b) retirement plan paid its recordkeepers excessive fees — reportedly up to $200 per participant annually, compared to a claimed reasonable fee of $35 per participant.
Paper products manufacturing giant Kimberly-Clark, which counts Kleenex among its many brands, recently settled a class-action ERISA suit, agreeing to pay about 15% of the alleged damages. The $2.25 million cash settlement stems from litigation that began in 2021, which alleged that the company’s 401(k) and profit-sharing plan failed to uphold their fiduciary responsibilities. Plaintiffs claimed that plan administrators allowed excessive recordkeeping and administrative fees — approximately $78 per participant — despite the availability of similar services from other providers at just over one-third the price.
It can take more than 18 months to seal the deal on a retirement plan, and it often involves multiple touchpoints. To stay at the top of your mind, you need to look for opportunities to provide value at every stage of the journey. That means showing up consistently, not just with check-ins, but with actual, actionable insights. PlanFees gives advisors an easy way to lean into opportunities with a clear, customized snapshot of how your prospects’ plan fees stack up. PlanFees can help you turn a sales pitch into a dialog where you’re adding value right from the start.
Landing a new 401(k) plan client is no small feat. Advisors must navigate a long sales cycle as plan sponsors carefully vet providers. That’s one reason why minimizing churn in your advisory practice is so important and why a strong, proactive retention strategy is essential for long-term success.
Building strong, strategic partnerships with plan sponsors is one of the most effective ways to elevate your practice and build your book. By evolving from a transactional approach to a more collaborative relationship, you can enhance trust and deliver better outcomes for the plan, its participants, and the organization. Benchmarking tools, such as Prism Total Fees Benchmarking, Prism365, and RFP Express can play a pivotal role in driving this transformation.
Advisors across the retirement plan industry often grapple with questions about compensation models. Whether it’s determining how much to charge based on assets or deciding when to use a flat fee, these decisions are made even more complex due to evolving technology, industry changes and rising client expectations.
Building brand awareness is key for any retirement plan advisor. To stand out in a crowded marketplace, it’s crucial that advisors not only differentiate their offering but also create a connection with their target audience.
In the future, the way retirement plan advisors operate could look as different as a flying car does from a horse-drawn carriage. And while you might not be soaring through the skies to your next retirement plan committee meeting just yet, the landscape of retirement planning is evolving rapidly.
No matter how impressive your credentials, the foundation of every advisor-client relationship is trust. According to Edelman, a leader in the communications and public relations space, trust is a core pillar of business success. This is true for the largest multinational corporation down to a small firm or solopreneur.