Tilted Toward Doing More Wealth Management

If you haven’t had the chance, do yourself a favor and listen to (or read the transcript of) the recent podcast that industry thought-leader Michael Kitces did with Ric Edelman. It’s a great interview, but there’s one theme that stuck out in particular for me:

The merger of Financial Engines and Edelman Financial now allows the two firms to combine technology and people to build lasting relationships with participants at scale.

And in Ric’s own words:

“We now can provide you human advisors to help [employees] with the broad array of personal finances at no extra cost to either you or the employee. How many 401(k) providers can offer that? So the value proposition skyrockets for us and Financial Engines, the value to the client is massive.”

– Rick Edelman on the Financial Engines merger

Ric goes on to highlight that because they have the scale to work with individual employees, they’re building long-term relationships and “we get to a world where by the time the client actually shows up as an advisor rollover, they’re not unattached, they have a 9-year relationship with an existing EFS advisor.”

You don’t have to be Financial Engines or Edelman Financial to see that this service model of individual coaching and support for employees is attractive to employers, while also being a great, profitable service model for advisors. Now, whether you give the service away for free or charge for individual coaching is up to the advisor, but Ric’s doing you a favor and telegraphing how the DC business is slated to change.

Additionally, leading retirement plan firms, including CAPTRUST, are shifting towards doing more individual work with employees. In the words of CAPTRUST CEO, Fielding Miller, he recently declared in an InvestmentNews article, “We definitely tilted toward doing more wealth management transactions.

For those who want to read, the writing on the wall is pretty clear. Retirement plan consulting is only going to get less profitable, so advisors need to find new ways to add value and generate revenue.

Retiremap Hires Steve Rydzak to Head Advisor and Enterprise Sales

From: Retiremap
Contact: Matt Iverson
Telephone: (415) 250-6727

San Ramon, CA, December 2, 2014 – Retiremap today announced that Steve Rydzak, AIF®, will join the firm as senior vice president of sales for Retiremap. Rydzak will focus on advisor and enterprise sales by working closely with leading advisory firms, broker-dealers, fund companies and service providers.

“Plan advisors are increasingly looking to differentiate their services with financial wellness, while connecting retirement plans to wealth management,” said Matt Iverson, CEO. “We are dedicated to the advisor-sold retirement plan market and are leveraging Steve’s considerable experience in working with advisors, broker-dealers and fund companies to grow Retiremap’s footprint as an advisor-driven financial wellness platform.”

Rydzak will report to Iverson who leads overall company vision, technology and product strategy. In his new role, Rydzak will collaborate with Retiremap’s leadership team to provide aggressive growth strategies and identify approaches designed to meet advisors’ evolving needs.

“We’re looking to Steve to replicate the success he had in his previous position, by personally cultivating and managing the sales process for key clients, while building out a great sales team,” said Iverson. “We’re very excited to have him on board and feel that Steve’s passion, knowledge and relationships within the retirement plan industry will pay dividends.”

Prior to joining Retiremap, Rydzak served as senior vice president of sales at fi360 since 2007, responsible for spearheading the national business development efforts by working with the top mutual fund companies, as well as custodians, broker-dealers, banks, insurance companies, and RIAs. Prior to that, he worked extensively in technology application outsourcing and offshore development focused in the financial services industry. Rydzak began his career in sales in 1990, holds an AIF® and graduated from Robert Morris University.

Retiremap is an advisor-driven financial wellness platform that uses behavioral economics to pro-actively engage employees and measurably improve outcomes. The award-winning platform uses iPad workshops, emails and microsites to improve employee engagement (1) and saving behavior (2), while making plan advisors dramatically more efficient and impactful. For advisors interested in wealth management and rollover opportunities, Retiremap generates qualified conversations, with 58% of iPad workshop attendees requesting to speak with an advisor (3).



(1) 97% of iPad workshop attendees feel the program is an excellent addition to their benefits package.

(2) 88% of employees decide to save more after completing the program.

(3) 15% of attendees have between $200,000-$500,000 in total savings, with 49% requesting to speak with an advisor. 6% of attendees have between $500,000-$1,000,000 in total savings, with 38% requesting to speak with an advisor.