Identify the retirement plan solution that meets your clients’ needs

Understand the needs and preferences of potential retirement plan sponsors to find a plan that’s right for them. Follow these steps to gather the information you need to deliver the best retirement solution.

1. Gather the information

How to do it:

  • Prior to meeting, put together a list of key questions to ask, such as:
    • How many employees do you have?
    • What are the assets in the plan?
    • How much is being contributed to the plan every year (by employer and employee)?
    • If you have an existing plan, who is the provider?
    • What’s working/not working with the plan?

  • During the meeting, document the responses to your questions. Let prospects know that you will use the information to create a customized proposal.

  • Close the meeting by:
    • Thanking prospective clients for their time
    • Letting them know that you will follow up within two weeks to present your proposal

2. Choose a plan and recordkeeping solution

How to do it:

  • Use the Small-Business Plan Selector Tool to determine the type of plan that is most appropriate for the business you’re working with.

    Options include:

    • 401(k) plans are open to all types of businesses and offer the most flexibility (in terms of contributions, loans and vesting, for example).
    • Solo 401(k) plans offer many of the advantages of a regular 401(k) for a company that does not have employees.
    • 403(b) plans are available to certain nonprofit organizations (for example, public schools and churches).
    • Money purchase and profit-sharing plans allow employer contributions only.
    • SIMPLE IRAs and SEP plans may be best for smaller businesses (those with 100 or fewer employees) that require an easy-to-use plan.
    • Payroll deduction IRAs allow employee contributions only.

  • If you have selected a 401(k), 403(b), money purchase or profit-sharing plan, choose one of the following recordkeeping solutions:

    • RecordkeeperDirect® — Designed especially for smaller plans and simple to operate and maintain, RecordkeeperDirect offers low-cost recordkeeping, a full complement of the American Funds, and customized plan administration by a third-party administrator.
    • PlanPremier®-TPA — Designed especially for larger plans, PlanPremier-TPA offers robust, yet low-cost plan services; access to hundreds of funds from many well-respected investment managers, including Capital Group; and customized plan administration by a TPA.
    • PlanPremier®-Bundled — Designed especially for larger plans, PlanPremier-Bundled offers robust, yet low-cost plan services; access to hundreds of funds from many well-respected investment managers, including Capital Group; and plan administration by Capital Group.

Resources to use:

Comparing Retirement Plans (Brochure) — Explain plan features, learn contribution limits and obtain a glossary of terms.

Compare Recordkeeping Solutions — Determine which solution best meets the needs of the plan.

Compare SEP and SIMPLE IRAs — Demonstrate key features and differences between SEP plans and SIMPLE IRAs.

3. Choose a share class

How to do it:

  • Determine which of our share classes best meet the plan’s service needs. Each offers different fees and expenses and advisor compensation.
  • Review the costs associated with the retirement plan share class and recordkeeping solution you’re recommending and create a report using our Retirement Plan Cost Comparison Tool.

Resources to use:

Share Class Pricing & Details — Compare the expense ratios and advisor compensation for each share class.

Price-It Tool — Get a preliminary estimate of the total cost associated with PlanPremier and RecordkeeperDirect plans.

4. Get customized sales presentations to use in sponsor meetings.

How to do it:

  • Use the convenient, comprehensive Retirement Planalyzer® to get client-ready presentations. With the tool, you can:
     

- Compare solutions and share classes with a quick fee quote, with first-year plan costs, or a detailed presentation, which also highlights plan features and costs over time.

- Create a fund lineup to propose or review in a report with returns, expenses and other details.

- Order a formal retirement plan proposal, which you'll receive in a day.

- Customize all presentations with your information on the cover page.

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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Although target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met.
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This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.