Advisor Best Practices &Plan Sponsor Triggers

Presented by:Heather Hooper — VP, Retirement Strategies

For Advisor Use Only — Not For DistributionLWI Financial Inc. ("Loring Ward") is considered to be an investment manager under Section 3(38) of the Employee Retirement Income Security Act of 1974 (ERISA) only for those portfolios and funds approved and administered by Loring Ward. Plan advisors and trustees may have other fiduciary obligations independent of those which are assumed by an ERISA Sec. 3(38) investment manager. This presentation is intended as a general discussion on the subject matter and is not intended to be a complete discussion of ERISA or fiduciary duties under ERISA. Do not rely on this section for legal advice. Each ERISA fiduciary issue has its own unique set of facts and circumstances demanding specific attention. Seek the advice of competent ERISA legal counsel on any questions concerning ERISA duties. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions are offered through its affiliate, Loring Ward Securities Inc., member FINRA/SIPC. R 13-309 (Exp. 9/15)

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Agenda

1. The Retirement Marketplace - An overview- Why offer these services?- Perception- What Employers Want

2. What are Successful Advisors Doing?- Discovery- Tailoring- Process

3. Staying Value Evident

4. Summary

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Marketplace Overview — What We’ve Found

• Most Advisors either have a few retirement plans or they are asked by their clients for this service.

• Confidence in and preparation for retirement is dipping.1

• 20% increase in employers relying on advisors for help with their plan.1

• Many employers do not understand their fiduciary role or that the liability extends to their personal assets.

• Folding it into your practice as a complementary service is ideal.

• How you work with your clients is changing and higher expectations are likely part of that equation.

1 March 2013 EBRI Retirement Confidence Survey

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What You Already Know About Offering Plan Services

• A competitive edge.

• Access to high net worth individuals.

• Regular contributions help grow plan assets.

and

• Your clients need your help.

That said…

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Perception

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An Advisor’s View

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An Employer’s Perspective

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Most Employees…

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How do we start to change that…

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Steps

• Commit to offering the service.…Establish yourself and follow a process…Be value evident

• Understand your audience.…What they need…Why they change

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What We Know and What They Want

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What they want…• Process focused support with great service• Ease of administration, risk mitigation,

reasonable fees and participant success.

• Employers are busy• The plan isn’t always a high priority• Converting a plan is considered cumbersome• There are multiple decision makers

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Top 3 Reasons Plan Sponsors Seek a Change*

*Briskin Study of Small Retirement Plan Sponsors 2010

• Poor service• Substandard participant education and support• Poor fiduciary/regulatory guidance

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What are successful Advisors doing?

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Pre-Sale & Post

*Briskin Study of Small Retirement Plan Sponsors 2010

• True discovery.• Tailored solutions.• Executing against an agreed upon schedule.

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Discovery

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Discovery

• To listen, connect and establish credibility.

• To assess the opportunity/needs; provide insights and educate on industry benchmarks.

• To help the employer see an unrecognized problem.

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Discovery

• Pre-meeting‑ Understand their company.‑ Research their plan.‑ Look for a business fit.

• Meeting‑ Set expectations upfront.‑ Articulate why you service this business.‑ Problem, Cause, Solution, Benefit.‑ Keep it simple.‑ Educate gently.‑ Know your audience.‑ Set a timeline for decisions.

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Tailoring the conversation

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The CEO (The Holistic View)

• Is it the best plan for company and employees?

• Are we protected?

• How easy is it for my staff to manage and operate?

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The CFO (The Numbers)

• Fees and expenses

• Investments

• Fiduciary responsibility

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HR (The People)

• Ease of implementation

• Participation/savings rates

• Service provider relationships

• Plan features

• Day-to-day maintenance

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Process

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• Tell them what you’ll be doing.

• Do it.

• Then tell them what you’ve done.

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Staying Value Evident

Call & Communicate

Monitor & Advise Educate & Inform

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How?

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Leverage Your Partners

Contact Loring Ward for:

• Comprehensive discovery process

• 3(38) Services

• Proposals

• Marketing materials

• Fund/plan analysis

• Growing your practice

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Summary

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In Closing

Exceeding your clients’ expectations doesn’t have to be complicated.

And neither does 401(k)

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Upcoming Retirement Plan Month Webinars

• 8 Retirement Plan Marketing EssentialsWednesday, September 18 at 11 am PT / 2 pm ET

• Closing Plans and the Loring Ward 401(k) ExperienceTuesday, September 24 at 11 am PT / 2 pm ET

• Communicating & Differentiating Your Value as a Retirement Plan AdvisorMonday, September 30 at 11 am PT / 2 pm ET

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Questions?

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401k@loringward.com | 800-988-3755, Option 6

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