An industry expert speaking at the Financial Planning Association’s annual conference offered six reasons why an advisor should enter the DC market:
• Workers in retirement plans need advisors.
• Advisors have a wealth of opportunities to cross-sell to plan participants.
• Regulations are favoring the fiduciary model.
• Not much competition, especially in the small plan market.
• Auto-investing and sticky money.
• $21 trillion in AUM.
So get ready for more competition. With only 5,000 advisors who have 10 plans, $30 million and three years of experience, and more 500,000 DC plans out there, the demand is greater than the supply.
