Did you know[1]:
- The small business market is over 32 million and growing.
- Three in four small businesses don’t offer a 401(k) plan.
- 47 states[2] either have or are considering a state requirement program mandate.
- SECURE Act tax credits are available to employers that offer a retirement plan benefit.
Despite the tax benefits, changing requirements, and employee attraction/retention benefits, many small business owners still believe that their business is too small for a 401(k) plan or that they can’t afford a plan.[3]
So how do you start the conversation?
How to Get Started
Understand Your Competitive Advantage
3D/L Capital Management, a retirement plan investment fiduciary, and Vestwell, an advisor-centric retirement plan provider, can provide the expertise and service you and your clients need to address common business owner concerns. Their advisor-centric value proposition gives you a competitive edge, providing:
- 3D/L provides 3(38) Investment Fiduciary Services, reducing your liability.
- They specialize in small business retirement plans. In particular, Vestwell offers a modernized and streamlined process that reflects how retirement plan advisors do business in the 21st century.
- Vestwell provides plan administration, recording-keeping and custody services, with both bundled and unbundled administration available.
- Vestwell has established over 100 payroll integrations.
- They offer one-to-one advisor to CSM relationship.
- Competitive fees round out the list of competitive features.
Identifying Prospects
A common prospect profile is:
- Businesses with 30-40 employees
- $1-2m in assets
- Either need a 401(k) for tax purposes or employee attraction/retention
- Are looking for a review of their current 401(k)
- Are in a state with mandated retirement programs and prefer a private solution vs. a state solution
Finding Prospects
In addition to reviewing your current book of business for prospects, consider establishing referral relationships with CPAs, payroll companies and benefit brokers to identify qualified prospects.
Utilize Your Resources and Partners
With 3D/L and Vestwell as your partners you don’t need to worry about being a 401(k) expert – you have a team behind you! Below you’ll find a list of resources to help you build your business owner clients!
Resources
- Learn more about the opportunity and the 3D/L and Vestwell process in this recorded webinar.
- Retirement Plan Business in a 3D World
This process overview takes you through 3D/L’s Propose, Engage, Execute, and Perform phases of small plan sales. - Not sure what information to gather? 3D’s Fact Finder for Retirement Plans provides a simple fact finder to help you start the conversation with 3D’s expertise behind you.
- Learn more about Vestwell in this overview and see how they Make Offering Retirement Plans Easier.
- Learn more about plan conversions with this advisor-targeted article from Vestwell on what to consider when switching providers.
- View pricing options from Vestwell:
Standard, Plus, Flex - View a Payroll Integration Overview and list of payroll provider pages
- Contact and proposal support information
[1] Frequently Asked Questions About Small Business 2023 – SBA’s Office of Advocacy
[2] States – Georgetown Center for Retirement Initiatives
[3] Three in Four Small Businesses Don’t Offer a 401(k) Plan | PLANSPONSOR
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