The 401(K) Boom — Opportunity Is Knocking

With unprecedented levels of investment in retirement accounts, there is a tremendous, nearly untapped opportunity for financial advisors sitting right in front of them: 401(k) rollovers.

Boomers

The first wave of nearly 76 million baby boomers entered retirement in 2007. This is the first generation to have had access to a 401(k) throughout their entire working career. As an industry, we have done a reasonably good job helping our clients accumulate funds. The challenge ahead? Help millions of retirees distribute and protect their retirement assets.

But how do you as a financial advisor find these clients? Kestler Financial Group has a tool that, if you follow it precisely, will have you rolling in rollovers and help you own the marketplace in your area.

401k Rollover Leads Program

Rolling in Rollovers (RIR)

As a Kestler Financial Group (KFG) partner, you have access to Rolling in Rollovers, our exclusive 401(k) rollover marketing system.  Obtain access to 401(k) rollovers before they hit the street by building relationships with HR managers.

HR managers are often untrained in the mechanics of 401(k)s, but are in the position of providing advice to their company’s employees. HR is the first to talk with a new employee and the last one to talk with departing employee. 

Your relationships with HR departments can be leveraged to target four main rollover opportunities:

  • Separation of employment
  • New employment while holding a previously existing plan
  • In-service distributions
  • Former employees holding on to an old employer’s plan

The 401(k) rollover machine

KFG kept their end of the deal and kept helping out my agents and myself with new product info and sales ideas.- Pat Carroll, Cadillac, MI

We’ve developed a system that you can turn into a 401(k) rollover machine. Once you identify an area you want to target for rollovers, Kestler Financial provides you with

  • FREE LEADS for all 401(k) plans in that area with assets over $1,000,000
  • Step-by-step instructions on how to build a relationship with the HR professionals
  • Bi-weekly letters and articles you can distribute to your newly-acquired HR relationships

Our studies have shown the average distribution rate from these plans is between 6% and 8% annually. If your area has 200 qualified businesses with $700 million in total assets, you should expect about $50 million to become available annually from these firms.  How much have you captured?

Could you do all of this on your own? Yes—if you had the time. How much of this flow are you currently able to capture? Rolling in Rollovers streamlines this process for you.

What Should I Expect?

Rolling in Rollovers is a long-term process to build relationships that bear fruit year after year.

Example

Let’s assume your area contains 300 businesses with 401(k) assets exceeding $1,000,000. You screen your list and identify 200 businesses you want to target. Then, over time you prune 100 businesses from the program.

If you get only one referral per year from half of your 100 remaining businesses, that’s 50 referrals every year from your area. Assuming you only close half the referrals and an average premium of $80,000, your area should yield $2 million in premium annually. At an average commission of 8%, that’s $160,000 every year! 

Your numbers could be even higher if

  • You can close a higher percentage of the referrals
  • You can cultivate a greater number of referrals every year
  • You can handle a larger area

Compared to the time and cost in developing your own seminars, your reach is extended greatly with Rolling in Rollovers.

What’s my investment?

Nothing except time!

The Rolling in Rollovers $399 licensing fee is waived for Kestler Financial producers. For your investment in time you get:

  • A territory in your requested area
  • A list of approximately 300 businesses with 401(k) assets in excess of $1,000,000
  • Detailed information on each businesses plan and employee participation
  • Twenty timely articles to send to HR reps on your list
  • Twenty suggested cover letters directing HR reps back to you
  • Artwork and forms to personalize and customize binders for each HR rep
  • Step-by-step instructions for targeting your prepared list
  • The Rolling in Rollovers Luncheon Guide to relationship-building luncheons with HR reps
  • Ongoing support, conference calls, and timely articles from KFG

Why Should I Participate?

You have an exclusive opportunity to participate in a retirement investment revolution. Our industry has yet to scratch the surface of this phenomenon and you can get in now.

Consider this:

  • In 2007, the first of the 76 million baby boomers began the transition to retirement.
  • Boomers are the first generation to have had access to a 401(k) plan throughout their entire working careers.
  • Over the next eight years alone, it is expected that $2.5 trillion will be added to the IRA market (Mintel Reports, August 2005).
  • The tools and techniques used to accumulate wealth are significantly different from those used to distribute wealth.
  • Seniors who are in the Retirement Red Zone—five years before through five years after retirement— face significant risk if their portfolio suffers losses.
  • Today’s retiree can be expected to live significantly longer than their parents or grandparents, placing an additional strain on retirement assets.