u/Accomplished-Look176

A common theme with all clients, no matter who they are or how much or how little money they have is “What happens if/when the market goes down”

We have a hypothetical we share and walk folks through, it goes a little like this:

I want to show you guys here this investor. In 2007, they had $1M in cash and turned 65. They were sitting in the same seat as you and we helped them invest all their cash into a 60/40 investment portfolio. They were a simple couple and they wanted to spend $80k a year in retirement. So, on that day in 2007, they retired, and began taking $40k out of their investments a year, plus received $40k in SS.

Can you tell me what happened in 2008 Mr and Mrs Smith?

We then hand them the hypothetical sheet folded in half. Show them that they had a little less than $700k at the end of 2008. What do you think they were feeling at that time?

Now Mr and Mrs Smith, if they sold their investments in about 15 years they run out of money.

Stay with me here, let’s follow this chart. No one went back to work, they didn’t spend less money, where were they at in 2009.

And by 2013 (the end of the folded in half paper) they are at $1M.

Now with out flipping over the paper. Can you guess how much $ these clients have invested today?

$1.7M. Still retired, and drawing off it, still invested.
Now, since they’ve been withdrawing 40k a year, today, they’ve taken out just shy of $1M from that portfolio.

Mr and Mrs Smith. The market will go down. It’s going to feel like it’s different this time. We are here to help you stay the course.

It’s an extremely eye opening conversation for our bread and butter clients. 401k millionaires and diligent, hard working savers. 😁

How are y’all pushing & explaining cash management for clients, especially businesses and business owners?

The more assets that you can get into the branch the better of course.

Anyone using Cash optimization as a method of prospecting businesses?

In the last 3 weeks I’ve been calling a niche group of business owners about their 401ks

315 cold calls
215 answered
115 business owners/decision makers reached
31 appts set.

75% show rate so far.
Already began moving a $1.7M plan.
$75M in total 401k assets.

Cool to see it still works.

Seems like all the folks you approach to get help want you to send their kids to Disney world with the most restricted investment lineups, sample proposals stuffed full of proprietary products, quotes with managed retirement solutions included, and their proprietary fixed account.

Just about all the garbage you can get.

I haven’t found any that don’t… And none of them really admit it, you just find out later.

Any RKs that you’ve used and had great experiences with, I’d love to know.

And how exactly do I sift through this garbage?

Local Healthcare company recently merged with a larger system. 800 employees joining into 20,000.

My team and I locally have never managed the 401k plan, but have a strong relationship with many current staff and have a great local presence.

We want to host a “Know your 401k options” to hopefully catch 45+ families desiring financial planning/strategy.

Currently, as it sits, we want to use a local go-karting/mini-golf spot that we can host at low cost.

Has anyone done a similar event? What are a few things we must be sure to do? A few we should avoid? How do we get a solid attendance? Etc.

Curious to hear niche businesses that clients have.

One of mine is a fixed base operations owner (airport). Quite the business he’s got and you’d never know.

Sounds ridiculous but. You can do 401K education, talk to participants in groups and in one on ones without handling the 401K.

Approach local HR at a 5-10k plus employer with a location in your town. Pitch group and 1 on 1 education as a benefit to them. HR is constantly flooded with basic questions they aren’t comfortable answering. Be the answer for them.

Start with groups separated by ages. Answer basic questions, but leave meat on the bone for clients that could be ideal for you. In the 20-40 age group this could be “if you are already maxing the 401k, or are looking to find another advanced strategy, be sure to find the 1 on 1 signup sheet…”

From large groups, filter to 1 on 1s, and that’s where you find business.

Went to a manufacturing plant last week, employer preferred only 1 on 1s. Did 50-60 and found 7, 500k plus employees ready to retire. Only one of these folks even knew the difference between pre-tax and Roth.

Thoughts? Anyone else done this?

Can someone passionate about non qualified deferred compensation plans give a high level overview.

These seem to be an extremely effective tool as an employer to reward and retain employees.

Please share resources, podcasts, books, articles, etc.

In specific, I have a small employer (15) looking to retain two key employees. Cash isn’t a problem.