AS THE CRISIS in the financial services market escalates, plan sponsors that might admit they need an experienced retirement advisor to help them navigate troubled waters are starting to become immobilized.  Like a turtle, they are going into their shell believing that there is nothing they can do right now and no safe place to hide.  Though it’s difficult to break through in times like these, getting the message out that a good advisor can really make a difference really resonates during crisis.  As more appointments with sponsors have cancelled last week than ever before, we are trying to educate sponsors that now is the time they should be speaking to an experienced retirement advisors.

It’s worth reviewing the role of an advisor which some advisors actually put into a written agreement.  With regulation 408(b)(2) due to come online 1/1/09 requiring vendors to submit a written contract listing services to be rendered and expected fees to be charged in dollar amounts not just percentages, advisors should consider incorporating the following activities into an agreement and should certainly use the list with prospects.

Role of an Advisor for Retirement Plans:

• Evaluate current plan v. corporate and employee needs
• Conduct a search or due diligence if necessary – analyze cost v. value
• Evaluate investments

–         Type

–         Quality

–         Fit

• Monitor investments and provider
• Solve problems
• Help participants
• Manage change

–         Corporate

–         Market

–         Provider

–         Regulatory

Managing change might be the most important role of an experienced advisor in times of crisis.  Though industry experts have realized how much change has taken place in the retirement market during the last three to five years, many sponsors have been mostly oblivious.  Now, almost all plan sponsors and participants realize that change, even dramatic change, is on the horizon with the safety of their nest eggs top of mind.  Getting through the thick shell of a turtle in hiding can be difficult in times of crisis, but persistent and experienced advisors will be rewarded with new business if they can get their message across.