Five ways for an advisor to improve IRA business

Five ways for an advisor to improve IRA business

Individual retirement accounts (IRAs) continue to comprise the largest segment of assets in the retirement industry. Most of the growth is driven by rollovers, creating opportunities for financial advisors working with clients who are deciding what to do with their 401(k) assets.

Here are five ideas that advisors may use to try to grow their IRA business:

1. Target IRA rollover opportunities early. During a review of accounts or a beneficiary checkup, discuss retirement assets while your client is still enrolled in the plan. Include retirement plan balances in the projections. These activities can help advisors make a connection to the retirement plan account before the client changes jobs or retires.

2. Plant the flag.
Advisors can establish an IRA account for clients so they have a destination for their future rollovers. In many cases, rollovers follow existing accounts.

3. Be an IRA expert. There are many planning strategies that involve the use of Traditional and Roth IRAs. Advisors can position themselves as experts on all matters associated with IRAs by exploring IRA-related strategies with clients. These may include such topics as understanding the net unrealized appreciation rule, supplementing income using IRS Rule 72(t), guidelines for required IRA withdrawals, Stretch IRA strategy, achieving sustainable withdrawal rates, and ways to optimize Social Security.

4. Capitalize on rising number of Roth IRA conversions.
The IRS recently reported a ten-fold increase in Roth conversions, largely due to tax law changes that make it easier to convert. Tap into this growing interest around Roth IRAs by discussing tax diversification and helping clients explore whether a Roth conversion is right for them.

5. Use social media to prospect. Listen to Chris Hennessey explain how advisors can use LinkedIn to identify IRA rollover prospects and develop business.


More in: Retirement/Income