Name: jeff kuzmich - Migrate_FA_New_Service Model_02122025_4813828
Uploaded: 2026-02-26T05:54:00.894Z
Duration: 27 min 25 s
Description: jeff kuzmich - Migrate_FA_New_Service Model_02122025_4813828

Transcript for "jeff kuzmich - Migrate_FA_New_Service Model_02122025_4813828": Hello, and welcome to our event today, A New Retirement Planning and Wealth Management. My name is Daniella, and I will be moderating our event this afternoon. To ensure you all have a pleasant experience, we want to make sure to highlight a few items regarding the webinar functionality. First, please note that the primary audio connection for today's session is streaming via your computer. Be sure to check your speaker volume to ensure your listening device is turned on and volume is at an audible level. To refresh or reload your webinar browser session, on a PC, press the F5 key, or on a Mac, press Command R. Our webinar console allows you to customize your view by enlarging or reducing the size of the slides and the media player using the tools at the top of each window. Let's take a closer look at some other important features. To download and print a copy of today's slide deck for future reference or to access additional resources, please refer to the files and resources window at the top right of your console. If you don't see it, you can turn it on by selecting the files icon in the navigation dock. If at any time during today's webinar you have questions or have any technical difficulties, you can send them via the ask us a question window or the ask us widget located at the bottom of your console. To submit a question, simply write in your question and click Submit, and we will have time at the end where we can hopefully answer some of your questions live. Please note that this presentation does not constitute legal advice and is for informational purposes only. And now I'd like to introduce today's speakers. Joining us today, we have Sean O'Brien, Head of Retirement Insights within the Data and Analytics Group at Broadridge, where he is responsible for crafting and implementing FI360's go to market strategy, driving retirement product sales success, and articulating FI360's value proposition to the market. Prior to joining Broadridge, Sean ran Cerule's retirement research and consulting practice. And from paychecks, we have Ellie Pandina. She is the manager for regional retirement wholesale at paychecks and e plan services. She has been in the retirement plan industry for eighteen years with the last nine years in wholesale and sales leadership. She has experience in retirement plan implementation, relationship management, training, wholesaling, and sales leadership. In her current role, she manages a team responsible for building relationships with financial advisors and educating them on retirement plan strategies and paychecks retirement services. What we'll learn today, we'll start discussing the emerging trend of convergence excuse me, the emerging trend, the convergence of wealth and retirement, why we're seeing this now, growing consumer demand to save, we'll review some opportunities for both clients and advisors, as well as challenges, talk about solutions and strategies to those challenges, and then finally, how paychecks can help. Before we dive in, I will put a poll question up here. You should see that on your screen. Approximately what percentage of your current business is from qualified retirement plans? You can just select A, B, or C, A, less than 15%, B, 15 to 30%, or C, more than 30%. This will give our presenters a chance to really know who's on the call with us today so they can better shape the information they're providing. Just gonna give it a few more seconds because we do have some people still submitting. All right. Excellent. And with that, I will turn it over to Sean. Great. Thanks, Daniella. Yeah. This is a really important topic in the retirement industry today. I'm glad, I get to be here to discuss it. This has been the convergence of retirement and wealth management is a major theme taking hold and has been taking hold over the past several years. Really, it's been happening in earnest for a long time, but we've been seeing a lot more momentum on this front recently. And, you know, what I what I wanna do is just kinda walk through, what the opportunity is, why this is an opportunity for advisers to think about, advice enterprise, advisory firms to think about, and then answer the question of why now? Why is this such a hot topic right now, and why is there so much buzz around this trend? So the reason why there's an opportunity here is multifaceted. For one, end investors, retirement investors, are increasingly garnering a larger percentage of their wealth in defined contribution plans, especially during their early to mid working years. This is largely due to the shift from a DB centric retirement system to a DC centric retirement system. And ultimately, at this stage, the defined contribution market is not really built for accumulation. And so what we find is that we're going to have more and more investors who need a financial advisor or need someone to help them as their financial life becomes more complex and they progress through their careers, and particularly as they transition into retirement. And plan advisors, are uniquely positioned to help end investors, and they really serve as a path of least resistance for retirement investors. And we know that inertia is a very powerful force within the retirement industry. So plan advisors can be front and center in the lives of participants early on in their financial life cycle to build familiarity and trust and so forth. And so there's an opportunity there for advisors to be thinking about both retirement and wealth together rather than as siloed businesses. And then if you flip that around and think about the wealth focused financial advisor, a lot of financial advisors who are focused primarily on wealth management have small business owner clients. And these clients could currently be offering a retirement plan to their employees, or they could be required to offer one soon, or they might be thinking about offering one. So being able to serve that client in a more holistic manner helps you entrench yourself in that individual's financial life and really take on a more holistic view of that small business owner's financial circumstances. And so that's kind of why there's an opportunity here and those are the kind of main considerations from my standpoint. The question I think a lot of people are probably asking is why now? Why is this something that's so buzzy right now and has been the past few years? I mentioned the growth in DC plans relative to DB and investors needing help because a lot of their accumulation considerations are not being taken care of within a DC plan for the most part, although there have been some innovations on that front to make some more institutional DC plans more retiree friendly. But I would also say from a pure economic standpoint, wealth management is just a more appealing business to be in on a per head basis. And there's some analysis I ran a couple a few years ago now, actually, that suggested that if you look at an individual participant in a recordkeeping relationship, within a retirement plan for a plan advisor and look at the fee that that plan advisor makes on that participant on a per head basis and look at the fees that that advisor can generate on that participant in a wealth management relationship, the profitability or the revenue that they would generate in a wealth management capacity is just far higher. So it's attractive from a pure revenue standpoint. And so that you see a lot of PE backed RIA firms right now trying to push on this convergence as they as they roll up more RIAs. And then lastly, I would say the the surge in small plan formation. One thing I've observed over the last couple of years is the state mandates. So the mandates requiring employers to either offer a retirement plan through the private markets, you know, a four zero one ks, a simple IRA, something like that, or join their state's auto IRA program has been influencing plan formation in a positive manner. We've seen a real sharp increase in the number of four zero one ks plans launched in recent years, we expect that to continue. It's been most prevalent in states like California, Illinois and Maryland. But these mandates are also already going into effect in other states as well or will be soon in states like Colorado, Connecticut and a few others. So that's something that where I think a lot of wealth management firms that I've spoken to or people at the home office level have indicated they're getting a lot of phone calls from their small business sort of clients about what they should do about this. So there's an opportunity there for advisers. And I talked about a little bit, about how end investors are increasingly on their own when it comes to figuring out their complex financial lives, their financial lives to get more complex as they age and as they head into retirement, seeing that their employer is not providing them a guaranteed income stream through retirement like they would through a TV plan as often as they were in the past. At the end of the day, a lot of participants, especially those who are maybe mass affluent or mass market or you know, just not on the most affluent end of the spectrum within four zero one ks plans need a lot of help as their financial lives become more complex. So nearly 51% of Americans worry they'll run out of money in retirement. 78% of workers and 72% of retirees are concerned inflation will impact their retirement. So not only is longevity risk increasingly shifted, the onus of managing longevity risk increasingly put on the end investor rather than the employer. But end investors are dealing with heightened inflation, which eats away at their spending capacity, in retirement. And then one in five Americans aged 65 are working past retirement age and earning higher wages. And this is the theme we hear all the time when we talk to plan sponsors about what their employees do after they retire. A lot of them say they suspect a lot of them are getting part time jobs afterwards. You talk to people, your friends and family who are entering retirement age or in the quote unquote retirement phase, and a lot of them decide to pick up part time work and just to make a little extra money to ensure that they don't run out of that liquid savings in retirement. So I think there's a huge demand for financial advice to help retirement investors sort through these really complex, difficult issues, that are only gonna become more difficult for the end investor, community within The United States. With that And with that, I think there's kind of an overall model that we want to get across today. We'll call it a hybrid model, where plan advisors can essentially, based on what I just discussed, help end investors across their entire financial life cycle. So participants, a lot of participants, especially as they accumulate assets, are going to have more and more increasingly complex financial lives. They'll eventually, in many cases, need some more need more holistic advice than is being offered to them within the plan. So retirement plan advisers are well positioned to help participants even in their early years in a situational basis when they aren't necessarily wealth management candidates help them with kind of like financial wellness questions and next dollar questions and next dollar issues. And then help them in a more holistic manner when they need that more holistic advice and they have the assets necessary to justify a wealth management relationship. So a hybrid model allows advisors to help end investors basically at every stage of their financial life once they graduate college and start their first job. So what does this mean for financial professionals? If we limit it to one word, say opportunity, so providing holistic services enables both wealth managers and financial advisors to expand their client base. So with the explosion of small plans and the increase in market demand, opportunities are opening up to serve new clients. At the same time, financial professionals can expand services to existing clients. It's going to increase profit margins from advisory fees. Traditionally, retirement plans have not been considered profitable for RIAs because they can't charge management fees to retirement accounts. They can, however, charge a flat fee or hourly fee for advising in addition to their regular fees for investment planning. Redefining the advisory role. REAs can determine how much clients need to save for retirement, select appropriate retirement accounts, and create sustainable long term strategy for their clients. They can also provide expert advice on investment planning. Staying competitive with a more holistic approach, so marketing consumer demands are changing, and technology is evolving at a breakneck pace, so firms that rely on outdated strategies may not be able to compete. Untapped markets for both retirement and wealth services with younger workers and increase, which is higher earners, not rich yet. Millennials are the largest generation in the workforce and at the age where they are starting to think about building wealth and saving for retirement. A third of workers estimate they will need $1,500,000 or more for retirement, but they currently have less than $50,000 in savings and investments. Among workers who are offered a workplace retirement plan, a third find having investment options to be really valuable. Retirement assets are where Americans are putting their money now, and it's on the increase. So these assets account for more than one third of all household financial assets in The United States. The total United State Retirement assets rose to $40,000,000,000,000 as of June 30, marking a 1.3% increase from March, which is the highest since the Investment Company Institute started tracking this figure specifically in the year 2000. So let's say you want to start expanding your service model to provide either wealth management or retirement planning. It may seem like a daunting task to suddenly have expertise in an entirely new discipline. So how do you hire specialists to fill in knowledge gaps and establish good procedures and best practices and standards, find the capital to invest in new technology platforms, and stay in compliance with everything, and manage all of your fiduciary risk and responsibilities. So there are various approaches to expand your service offerings, and the good news is you don't have to do it all at once. To start, you want to find out what your current book of business, what does your existing client base need, and then scale up from there. From there, second, rely on trusted third party partners that can help you fill in knowledge gaps, specifically in the retirement space, get compliance support, and do it affordably. And many third party partners already have technology platforms in place to really help reduce your technology investment. So let's get into Retirement Plans Simplified. It's an online digital platform helping advisors with retirement plan business. This powerful, yet simple digital experience gives you a big picture view of your client's retirement journey and helps you maximize small or start up plans. Hosted by Paychex and integrated with Broadridge's technology platform, you get two solutions in one. Paychex Advisor Select offers mobile first technology and focuses on plan design, setup, and plan management, and of course, payroll integration with well over 25 providers. It's actually probably close to about 100 providers at this point. And Broadridge's business intelligence provides strategic visibility into advisors' retirement plan business, offering data analytics and insights into plan investment lineup balances, net monthly performance, and the ability to drill down and export data. So for more than twenty years, advisors have partnered with Paychecks Retirement Services to help grow their business and guide clients toward retirement readiness. So with 100% fee transparency, we give total visibility into the expenses and fees associated with your client's plan. We offer flexible plan design options and other options for plans tailored just to meet your clients' specific needs. We have optional financial and fiduciary options with three thirty eight, three twenty one, three sixteen fiduciary services, payroll integration, streamlining your clients' administrative duties, open architecture fund choices, investment available from dozens of the most respected investment families out there, and of course, easy online plan management with access to all plan documents and quick enrollment for eligible participants. Thanks, Ellie. And and on on my end, on the Broadridge side, we're doing a lot. We offer a lot of different solutions for the for retirement in the workplace between our Matrix Financial Solutions franchise and our FI360 solutions. We're helping on the retirement plan space in terms of being a custodian for record keepers in the retirement plan space and offering transaction services on that front through helping advisors from fiduciary standpoint and offering fiduciary toolkits to help advisors do their business in the retirement plan space easier, more efficient, more profitably, and within in line with the fiduciary standards. So at Broadridge, we don't have any proprietary investment products or solutions that we're looking to get into the DC market. We are looking to be strategic partners to the recordkeeping and advisory community. And we have a suite of solutions and an appetite for innovation to help you help align our offerings with what you're looking to do in the market. If you have any questions about that, feel free to email me or reach out and happy to discuss. All right, thank you, Sean and Ellie. A quick poll question here before we get to our Q and A, so please, if you have any more questions, keep them coming in. Would you like to speak to a member of our regional wholesale team about partnering with Paychex to grow your book of business? You should have a pop up on your screen. You can just select yes or no, and we will put you in contact with our team. Okay, so some Q and A that has come in. This first one is for Sean. Is there any fraud resources that you'd recommend as a value add to our participants as advisors? And, how can we implement this info, excuse me, how can we implement this into our existing employee education? Yeah. Off the top of my head, are a few different resources that, should be available. The Spark Institute actually has a really, robust set of educational resources around, cybersecurity and fraud control. This is guidance for plan sponsors, record keepers, participants. I would highly recommend checking out Spark and and looking at what they have to offer. Capital less, just as a little background, you may want to also look at the DOL's guidance around cybersecurity. Those could be good starting points. And from there, think if you looked at the Spark materials, you'd probably find something that you could implement with your plan sponsor clients and even their participants to help them get better control around what they're doing with their personal data and their controls around cybersecurity. I'd recommend the Spark Institute for that. Excellent. This next one, is, I think, a good one for Ellie. It says, I don't want to spend time on startups. What type of support is offered to set up the plan? Absolutely, yeah. So we offer support from both helping advisors actually hunt and prospect for startups and conversion plans, as well as getting through the entire proposal setup process. So we have an awesome level of support here where we will handle everything from proposal materials and investment research, cost analysis, put together everything, as well as the submission, helping the client with any paperwork that's required, getting that filled out, getting it submitted, and then also helping with enrollment meetings, as well as through the client onboarding through the setup process. So it's really very easy. We kind of take the ball and run with it, and you're involved as little or as much as you want to be. Great. Thank you, Allie. One more. Does this solution connect with Matrix Toolkit? I think they might be referring to the FI three sixty Yes. Business intelligence? Absolutely. You can see a consolidated dashboard right at Matrix, definitely. Let's see here. And I think we have time for one more. What is the best way to find new retirement clients? So yeah, we touched on it a little bit in the beginning. Just to start, you really want to start with finding out what your current clients need and then going from there. What I recommend is relying on trusted partners, such as Paychex. Again, your wholesale team, you can reach out to your wholesaler. There's going to be a wholesale map on your portal available for you. And these folks literally specialize. That's what they specialize in, is uncovering plans and showing you and financial advisors specifically how to prospect and how to get started in the retirement plan business if you don't have much experience. So my biggest recommendation is to reach out to one of your wholesalers to help you along that entire process. And yes, as Ellie said, in the Resources Files and Resources tab, on your console, can connect to the, paychecks website for advisors where you can find your regional wholesaler contact information. Okay. Well, I would like to thank you again, Sean and Ellie, for joining us today and for everyone who took time out of your busy schedules to attend today's session. As a reminder, you can download and save a printable copy of the deck in that files and resources window, and you'll find additional helpful resources there as well. If you can spare a few extra moments, a brief survey will pop up as we close, and we'd welcome your feedback to help us improve future webinars like this one and other resources for financial advisors. Thank you everyone again, and have a wonderful afternoon.