advisor advantage+ workbook - massmutual · best practice: obtain plan insights and identify...

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.

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.

Best practice: Before you even get started with a client, define your target market. Where and with whom you will focus your efforts? Create a prospecting binder organized by your key target criteria, such as:

Planisphere can help find prospects in your defined target market. Contact us to learn more.

How to use this guide

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What stage are you in with your prospect or client?

G E T I N T H E D O O R

S E C U R E T H E S A L E

K E E P T H E P L A N

• Geographic location • Plan type

• Plan size/assets• Current provider


Best practice: Obtain plan insights and identify potential opportunities by considering or asking probing questions. Use the “Do your homework” section below for some ideas on topics and questions to keep in mind.

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 retire on 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• Financial wellness program

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


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 meeting experience – metrics of success

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

retirement strategy

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 plan administration needs

• Plan administration experience (e.g., level of service, proactive vs. 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

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Best practice: Fiduciary obligations are a top concern for plan sponsors. Creating a fiduciary tool kit can help separate you from the “generalists.” It may include: • A checklist of fiduciary obligations • A sample Investment Policy Statement • Plan design information Learn more about our fiduciary tools and resources that can help you stand out from the competition by contacting our sales team.

Best practice: A strong value proposition can help you stand apart. Use the information you gather to tailor your discussion to your prospect’s needs and effectively articulate your value. Contact us to learn more about how we can help you deliver your value proposition with an easy-to-use tool.

1 2015 MassMutual Winning Combination study.FOR FINANCIAL PROFESSIONAL AND PLAN SPONSOR USE ONLY. NOT FOR USE WITH EMPLOYEES.

Step 2: Ask the right questions

Plan history/basicsHow long has your plan been in place?

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/featuresWhat is the current plan design of your retirement program?

What would you like your retirement plan to accomplish?

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

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Best practice: An agenda is a must for all meetings. Focus on the prospect’s needs and hot buttons. • Demonstrate your professionalism• Put your prospect at the center of the conversation• Keep the conversation on track


5

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/concernsDo 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?

**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


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Plan measurementHow 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 educationDo participants have access to a financial wellness program that delivers a personalized solutions-driven game plan that can help them during the benefits enrollment period?

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

How is your program meeting/not meeting your expectations?

What does your current provider do to deliver tools to help alleviate their employees’ stress and be more productive at work?


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Step 3: Gather the right documents

Document checklist

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

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

cc Plan/adoption agreement

Best practice: 401(k) champions leverage their partners and routinely draw upon their industry expertise — whether plan providers, TPA or others to: • Benefit from their technical experience• Obtain professional references • Access industry and competitive knowledge• Consult on specific tax codes and retirement plan nuances

Best practice: Before meeting with a plan sponsor, obtain proposals from other vendors and review each to gain an understanding of their plan pricing, services and features. This will enable you to speak confidently about the vendor you choose for the formal sponsor presentation.


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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?

Best practice: Don’t neglect the dry run! Adequately preparing for your presentation will always be time well spent. • Visualize your audience• Script out the key points you want to make based on the agenda you’ve developed, including

what you want to accomplish and what is most important to your prospect or client• Present to your colleagues or team members. Ask for their feedback and discuss strengths and

opportunities to improve

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

Best practice: As a retirement plan champion, you’ll need to speak strategically, which means being current on industry trends and issues. Sign up for industry newsletters and emails and check out these websites: • IRS.gov• DOL.gov

• 401khelpcenter.com • PLANSPONSOR.com


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Retirement plan sponsor resourcesExperience MassMutual

FOR EMPLOYER USE ONLY. NOT FOR USE WITH EMPLOYEES.

E M P LOY E R

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


© 2018 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001. All rights reserved. massmutual.com.RS8891 1118 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.


advisor advantage+ workbook - massmutual · best practice: obtain plan insights and identify...

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