FA-IQ reached out to top Financial Times-listed retirement advisors to ask:
How will the Secure Act — or the Setting Every Community Up for Retirement Enhancement Act — help you grow your practice?
Daniel Peluse of Wintrust Wealth Mangagement, Retirement Benefits Advisors Division. Chicago-based Peluse has been in the industry for 18 years and has $2 billion in client assets.
“In general, this will be beneficial for us as well as the retirement plan industry as a whole.
For a few years already, we’ve created and offered a turnkey solution that includes both 3(16) administrative fiduciary & 3(38) investment fiduciary services along with a plan recordkeeper which is available to plans with less than $5 million in assets.
This segment of the retirement plan industry traditionally offers less cost and administrative efficiencies for standalone plans, making the decision more challenging for small employers to offer their employees a qualified retirement benefit.
The Secure Act allows us to expand upon the solution we already have in place with the goal of offering a more customized open MEP [multiple employer retirement plan] or pooled employer plan solution to many more clients and prospective clients.
By pooling small plans together, it becomes beneficial from cost, administrative and fiduciary perspectives. With the open MEP solutions that we are currently establishing along with others that will be created within the industry, we expect a much higher plan adoption rate among smaller employers than what we see today.”
Michael Coelho of SageView Advisory Group. Coelho, who splits his time between Austin, Texas and Irvine, Calif., has been in the industry for 25 years and has $4.5 billion in client assets.
“There is nothing specifically in the Secure Act that I think will directly help us grow our client base or assets. Rather, we will continue to be an information hub for honest, simple advice on how this impacts participants and plan sponsors. We work hard to educate our clients so that they are as informed as we are.
With a more-informed client base, we can work together to solve the problems that stand in the way of our participants' gaining financial freedom in retirement. There is plenty of white noise out there — the challenge is helping clients barricade the dangers, and exploit the opportunities for advancement.”
This is part of an ongoing series wherein we ask Top Financial Times 400, 300, and 401 Advisors to answer pressing questions about the industry, their practice or their clients. Brokers and advisors make it to the respective Financial Times lists based on scores in six criteria: AUM, AUM growth rate, years in existence, advanced industry credentials, online accessibility and compliance records. Responses have been edited for clarity and concision.
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