Retirement Plan Advising

Create a clear value proposition for your retirement plan practice

Reviewed onSeptember 25, 2024

5 MIN ARTICLE

Your value proposition statement articulates your core principles as a financial professional. Here are the steps to producing a statement that speaks to clients.

KEY TAKEAWAYS
  • Create powerful, customized value proposition statements
  • Convey your core principles as a financial professional 
  • Reach three types of retirement plan clients 
  • Underscore your commitment to superior outcomes

Step 1: Create customized value proposition statements (VPS) for three types of retirement plan clients

 

How to do it:

For retirement plan sponsors: Use the value proposition tool for employer-sponsored retirement plans. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Overall plan servicing philosophy
  • Plan sponsor support
  • Commitment to participant education and ongoing services
CREATE A VPS FOR RETIREMENT SPONSORS

Sample statement for retirement plan sponsors

Example of a Retirement Plan Value Proposition Statement dated September 27, 2024. There is a Prepared by: line where you insert your name with your firm name. The next line reads: Mission Statement I will help you create and maintain a high-quality retirement plan by providing a superior level of plan service for you and ongoing educational support for your participants. Then there are three subsections. One is Overall retirement plan servicing philosophy, which includes four parts: a. I believe that your retirement plan should offer a variety of investment options with a full spectrum of objectives. b. I believe that with the right kind of education, plan participants may be less likely to react adversely to short-term dips in the market. c. I will work with your plan provider to see that your plan runs as smoothly as possible. d. I will strive to ensure that your retirement plan meets your needs at a fair and reasonable cost. Two is Plan sponsor support, and the four parts are: a. I will help you evaluate the costs of multiple provider proposals. b. I will show you how to create a diversified menu of investment options. c. I can help you review your investments quarterly. d. I will work with your plan’s trustees to understand the roles and responsibilities of being a plan fiduciary. Three is Commitment to participant education and ongoing service, and the three parts are: a. I will provide customized enrollment books and personally conduct the enrollment meeting for your new retirement plan. b. I will make sure your plan receives periodic retirement plan education, targeted to meet the needs of your employees. c. I will help to facilitate rollovers for your participants when they leave the plan. The disclosure reads: For plan sponsors only. Please consult your tax and legal advisors regarding the consequences of establishing and maintaining an employer-sponsored retirement plan. Copyright Capital Group. All rights reserved. Securities offered through Capital Client Group, Inc.

For IRA clients: Use the value proposition tool for individual retirement plans. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Retirement planning
  • Investment selection
  • Customer service
CREATE A VPS FOR IRA CLIENTS

Sample statement for IRA clients

Example Individual retirement plan value proposition statement dated September 26, 2024. At the top, a box calls out where you can add your firm’s logo, letterhead and branding (pending approval by your compliance department). There is a Prepared by line that reads Ann Norris Example Advisor Firm. The Prepared for line reads John and Jane Investor. Under the Mission Statement reads Our mission is to help you live comfortably and confidently in your retirement years. Under that are three sections. A call out box shows how you can decide whether to begin statements with I, We or Our firm. Section one is Retirement planning approach, and included in that are three subsections: a. We believe a comprehensive assessment of your complete investment picture is critical to developing a successful retirement strategy. b. We believe in tailoring your retirement strategy to fit your unique needs, goals and financial situation. c. We believe — regardless of what’s happening in the market — you don’t have to take excessive risks to work toward reaching your long-term goals. Section two is investment selection. Here the call out box points our that you can use tools that select the statements that best describe your approach to retirement planning, investment selection and ongoing service. This example includes three subsections: a. We believe the manager of your retirement investments should have a proven approach to help shareholders build their assets and make them last after they retire and start taking withdrawals. b. We believe the manager of your retirement assets should have a proven track record of generating consistent long-term results through both good and bad markets. c. We believe the key to making your retirement savings last is finding an investment manager with a long-standing commitment to generating consistent results. Section three is Commitment to ongoing service and there are three subsections: a. We can periodically provide you with an investment evaluation that weighs your needs and goals relative to your portfolio. b. We can review and recommend adjustments to your investments in response to changes in your needs, goals or overall strategy. c. We can set up meetings with you and your beneficiaries to discuss the options and benefits of the various beneficiary designations. For plan sponsors only. Please consult your tax and legal advisors regarding the consequences of establishing and maintaining an employer-sponsored retirement plan. Copyright Capital Group. All rights reserved. Securities offered through Capital Client Group, Inc.

For retirement income clients: Use the value proposition tool for retirement income. The tool includes a variety of sample statements to choose from. They focus on:

 

  • Retirement income planning
  • Investment selection
  • Ongoing customer service
CREATE A VPS FOR RETIREMENT INCOME CLIENTS

Step 2: Print copies of the value proposition documents on your letterhead

 

How to do it:

  • Each of the tools will generate a one-page VPS document in PDF format.
  • Save the file on your local desktop and print copies on your letterhead to further customize your statement.
  • Remember to have your compliance department review and approve your VPS (if required by your firm) before sharing it with clients.

Step 3: Put your value proposition statement to work

 

How to do it:

 

For prospecting:

  • Distribute your individual retirement account (IRA) VPS to prospective clients at seminars or presentations as your calling card to show that you’re committed to helping them live comfortably and confidently in retirement.
  • Provide your employer-sponsored retirement plan VPS to interested plan sponsors to highlight your ability to provide superior ongoing service and summarize what you can do for them.
  • Use the retirement income VPS with clients or prospects who are close to retirement or who are concerned about having enough income in retirement.
  • A VPS is also a useful tool for networking with other professionals (e.g., CPAs or tax advisors) who can refer clients to you for their retirement needs.

With existing clients:

  • Present your VPS to existing IRA clients during an annual review, along with the personalized investment program you created for them.
  • Your VPS can be a great icebreaker to begin a discussion with plan sponsors about their plans. Customize your VPS to reflect the concerns that are most important to individual plan sponsors and use it as a way to reintroduce yourself to your existing clients.

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