advisor advantage+ workbook - · advisor advantage+ workbook turning a prospect into a client —...

Advisor Advantage+ workbookTurning a prospect into a client — and keeping them over the long term — has never been easier

FOR FINANCIAL PROFESSIONAL AND PLAN SPONSOR USE ONLY. NOT FOR USE WITH EMPLOYEES.

How to use this guide4

Get in the door4Step 1: Do your homework4Step 2: Ask the right questions4Step 3: Gather the right documents4

Secure the sale4Proposal questions4Useful, but not essential for a proposal4

Keep the plan4

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Lasting client relationships start with information. When you know what a retirement plan needs, you can help the sponsor create, adjust and maintain the best plan to meet the evolving needs of their workforce.

Whether you’re in the info-gathering stage for a new prospect, getting a plan ready to transition or focused on client retention, this workbook has the information and resources you need to work effectively with your plans.

Be on the lookout for best practices throughout the guide to help you maximize your results.

How to use this guide

What stage are you in with your prospect or client?

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To start a meaningful conversation with a prospect, you need to know their business and what matters to them.

It only takes three steps to “get in the door” and gain the insights that will help you position yourself to win.

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Step 1: Do your homeworkThe following chart outlines important topics to consider before your meeting. Take some time to review these topics in relation to your prospect and jot down some thoughts and ideas in advance to your meeting.

Get in the door

CATEGORY OVERVIEW TOPICS TO CONSIDER NOTES

PLAN DESIGNWhere can you help optimize their plan?How a plan is structured can have tremendous impacts on participant outcomes. Examine how the plan handles different options, such as employer contributions, automated features and other key design elements and identify areas for change that may drive retirement readiness.

• Plan goals• Challenges with plan, areas

for improvement• Successful plan aspects• If plan is meeting employee needs• Key changes in plan design (e.g.,

added Roth, auto-enrollment, etc.)• Impacts of the DOL rule• Most important benefits to help

ensure your participants retireon their own terms

• History of other plans sponsor has offered/participated in

• Contribution limits

CURRENT PROVIDERWhat do they consider important factors in choosing a provider?Knowing their current provider and their capabilities can help you position yourself as a value- added resource.

• General provider background• Advisor vs. Third Party

Administrator (TPA)• Plan benchmarking• Provider transition experience• History of providers• Likes vs. dislikes of current provider

INVESTMENTSIs the investment lineup meeting their needs?A plan’s investment lineup is one key element in helping participants achieve retirement readiness, so it is important to understand if they have access to a reasonable set of investment choices that is also consistent with the sponsor’s investment philosophy.

• Plan investment evaluation• Employee-select investments

vs. managed investments• Investment performance

and range• Prospect’s comfort level with

fiduciary responsibilities• Asset allocation options/

TDFs/QDIA• Yield on cash

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CATEGORY OVERVIEW TOPICS TO CONSIDER NOTES

ADMINISTRATIVE SERVICESDo they get the help they need?Business growth requires the focus of the sponsor and the employees, so make sure the plan is getting the support they need to have more time in their day.

• Daily planadministration needs

• Plan administrationexperience (e.g., levelof service, proactivevs. reactive)

• Ease of administration

PLAN COSTIs cost a factor?Understand their current cost structure so you can offer impactful suggestions on how they can lower expenses and get the full value out of their plan and the services offered by their provider.

• Plan cost evaluation• Hard dollar vs. soft dollar

costs• Fees paid directly for

services

COMPLIANCE RISKAre they concerned about their fiduciary obligations?In a recent survey,1 more than four in 10 plan sponsors said their company wasn’t a fiduciary or they weren’t sure. Make sure they understand their role and the tools and resources that are available to help them meet their obligations and mitigate risk.

• Fiduciary support• Fiduciary warranty

EMPLOYEE EDUCATIONIs employee education a priority and how can you help?Educating employees drives better outcomes, but not all providers offer innovative solutions that drive real outcomes. Find out what their employee education strategy is and uncover opportunities to fill in the gaps.

• Onsite education meetingexperience – metricsof success

• Retirement-ready status• Employee tools• Individual vs. group

retirement strategy

1 2015 MassMutual Winning Combination study.

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Step 2: Ask the right questions

Plan history/basics

How long has your plan been in place?

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Were you a part of the decision to choose your current vendor(s)? If so, please summarize that selection process.

What was most important to you and who was involved in the decision?

What were the deciding factors in selecting your current provider? Advisor? TPA?

Who is your current provider? Advisor? TPA? How long have you been working with them?

Do you have an Investment Policy Statement?

Do you have an education plan or calendar?

Does your advisor deliver a value proposition or statement of services they deliver to you?

Plan design/features

What is the current plan design of your retirement program?

What would you like your retirement plan to accomplish?

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Are highly compensated employees allowed to contribute up to the plan limits?

Can your employees make catch-up contributions and are they aware?

How do you evaluate your plan’s investments? How often?

When was the last time you replaced a fund?

Are there any plan assets held outside the plan (e.g., self-directed brokerage)?

Plan costs/concerns

Do you know your plan’s total cost? Do you think it’s reasonable?

Can you provide a copy of your annual participant fee disclosure?

Do you worry about the personal legal risks that accompany offering a retirement plan to your employees?

How many participants are separated from service with a balance?

Are there currently corrective distributions being made?

**Do you feel your employees/key executives can save enough for retirement through the qualified plan alone?

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**Is your plan failing compliance testing? Would you like key executives/employees to be able to save more than 402(g) limits allow?

**May not be applicable to NQDC

Plan measurement

How often do you benchmark your plan and when was the last time it was done?

Do you know what percent of your employees are on track to retire with enough income to last through retirement? Is this included in your annual plan review?

Employee education

How important is your retirement plan benefit to your employees?

What have your employees expressed as their needs or concerns related to retirement planning?

How would you describe your current provider’s communication and education program? How do you measure its effectiveness?

Who conducts education meetings for your employees? How do you measure the effectiveness of those meetings?

Plan goals

If you could change one factor about your retirement program, what would it be?

How is your program meeting/not meeting your expectations?

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Step 3: Gather the right documents

Document checklist

Fee disclosure documents (408(b)(2) and 404(a)(5) notices)

Most recent quarterly investment asset statement, investment menu and/or current asset allocation

Plan/adoption agreement

Want to compare fees using four real- world analogies sponsors can understand to illustrate key differences? Ask your MassMutual sales representative about Comparing plan provider fees - It’s not apples to apples (RS7188).

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Secure the saleGather what you need to deliver a winning proposal.

Proposal questions What is the name of your company’s plan/tax structure?

What are the total assets for your plan?

What is the total plan balance? Are there assets set aside or is it just liability being tracked? (NQDC plan only)

How many employees work for your company?

How many are eligible to enroll in your plan?

How many already participate (for salary deferral plans) and have an account balance?

How much are participants contributing to your plan each year? How much is being distributed?

Is your plan administered by a TPA or are you working with a bundled provider?

What is the name of your current provider?

What type of plan(s) do you offer your employees?

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How is your current advisor compensated?

Useful, but not essential for a proposal

What is the investment lineup and what are the assets by investment?

What is the surrender value or Market Value Adjustment (MVA) of the plan?

May I have the contact information for your current plan provider?


Keep the plan

Retention is key to building a successful practice. The more clients you have who value the work you do, the more referrals you’re positioned to receive to build your business further.

Nearly three-in-five plan sponsors want their advisor to review their retirement plan semiannually or more.1 3 IN 5

Don’t miss an opportunity to drive better plan outcomes year over year, and keep you in the driver’s seat: provide plan sponsors with a workbook of their own!

Ask your MassMutual sales representative about the Retirement plan sponsor resources brochure (RS1743), designed to equip sponsors with checklists, calendars and resources and help them take action and discover the keys to successful plan management.

Make it easySponsors need more time back in their day and together, we can make that happen. We can help sponsors by:

Performing a quarterly investment review

Helping the sponsor form an investment committee

Conducting (at least) annual employee education and maintaining an ongoing education strategy

Crafting a fiduciary audit file for the sponsor to keep important documents such as, adoption agreements, beneficiary forms and distribution forms

Reviewing plan health and design on an ongoing basis to improve plan health and ultimately, the organization’s bottom line

Considering automated services, as well as a re-enrollment strategy to help participants meet retirement goals

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© 2018 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.All rights reserved. massmutual.com.RS8891_a 218 C: RS-44022-00

To learn more about MassMutual’s retirement plans, or to access the digital version of this guide to print any of these resources whenever you may need them, call your local

MassMutual retirement specialist or our sales desk at 1-800-874-2502, option 4.


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