They say that time flies when you’re having fun, but time has a funny way of passing faster than you think once you have a chance to stop and look back. So, how’s it been for NAPA Net readers over the last 12 months?
Well, for starters, when asked if they were working harder than a year ago, 45% said they were; 45% were working at the same pace; and the rest had cut back some. Though at least one of those commented that they were working “smarter” – having added a new plan consultant to their team. Some additional reader observations:
“We are taking on more and more work and liability but my fees are not moving up commensurately. I need to work on that!”
One reader noted that, “Social media is really taking off for us, both on LinkedIn and Twitter, my own work Twitter account is approaching 1,500 followers, which I consider amazing for a specialized retirement plan advisor account...”
“I feel like everybody wants everything yesterday and I am constantly interrupting whatever I’m working on to put out the next fire. Thus I am becoming less efficient and everything actually is taking longer to turn around.”
“Compared to last year, I am that much closer to retirement,” noted one reader. “It is getting fairly close, but unfortunately not close enough to start counting down.”
Or, as one reader noted (calling to mind the 2018 reader favorite retirement anthem), “To paraphrase The Animals – I’ve gotta get out of this place.”
“Employers are becoming more educated in their role as plan sponsor and about their plan in general. We are producing much more information for the participant that the majority never look at or review.”
“The industry thinks that MEPs will solve more problems than they will. They are a good idea but they won’t make inefficient efficient. Provider-filed 5500s would have brought just as much simplicity with less baggage. Assets got cheap years ago.”
“The automation trend has made more work with less reward... and I don't see that changing until the machines rise up and take control!”
One reader explained that they were working “About the same as a year ago, but definitely less hard than two to five years ago mainly as a reduction in number of clients (moving away to fully-bundled).”
Keeping Recordkeepers?
Speaking of which, with all the machinations around preparations for the fiduciary rule, and ongoing industry consolidation (seriously, has there ever been a time when the industry wasn’t consolidating?), we asked readers if they were working with fewer recordkeepers than a year ago. And the majority – nearly two-thirds (63%) – said they hadn’t reduced the number. Approximately 15% said they had – and another 13% said they had, though it wasn’t their choice.
One reader explained that they hadn’t reduced the number… because they had already done so several years back. As for the reasons behind those consolidations, readers offered a number of explanations and comments, including these:
“With considerable consolidation in the industry, we are looking to identify the recordkeepers we believe have staying power.”
“Their back office systems suck. I’d rather work with the devil I know than the devil I don’t.”
“Several reasons: (1) There have been changes in the pricing and design of the recordkeeping platforms, making some less desirable than others. (2) There have been changes to wholesalers. A good relationship with the local wholesaler is critical to being able to work with a recordkeeper. (3) A desire to simplify our practice by limiting the number or recordkeepers we present.”
“I can leverage a deeper relationship with a smaller amount of RK I work with.”
“Making things more efficient and scalable.”
“To be more efficient in my practice and get better servicing from the RKs I partner with.”
“Their incompetence.”
“Too many are jamming product down our throats... or the level of service has fallen off. Getting harder and harder to find great recordkeepers.”
“Some of the record eepers have priced themselves out of the small plan market. Others have seen a sharp decline in the service we receive from either their wholesaler, operations team, or both.”
“Consolidation of providers has led to only a handful of recordkeepers that I trust my clients’ plans with.”
“I have added 6 new recordkeepers in the past year. The new plans I have acquired needed a new advisor but not a new recordkeeper. I feel plan sponsors are becoming more aware of the services offered by recordkeepers versus advisors.”
“Anticipated industry consolidation and wanted clients to be well positioned for such... A better business model in today's ultra-competitive/low margin environment: easier to manage, leverage, and provide value for the client... without sacrificing independence!”
Project 'Shuns'?
Having dealt with a couple of key business issues, we decided to deal with some more personal perspectives: specifically, retirement needs projections. Readers were asked how often they did one for themselves.
Roughly 4 in 10 did one annually, and believe it or not, 8% did so once a quarter, and 3% said they did so on a monthly basis. Approximately 15% said they did so “once every couple of years,” and the rest opted for a “now that you mention it…” response. Read into that what you will. “I am the quintessential shoemaker’s daughter. Never,” admitted one reader.
“Every time I get fed up & think I’m going to retire,” noted one. “Before kids and then after kids but it’s been a couple years,” explained another. “We're just starting to think about this,” another commented, while another said they did so “when something changes.”
Personal Notes
We also threw in a couple of personal insight questions – so, in case you were wondering:
- 60% of survey respondents keep their watch set to the exact time (22% don’t wear a watch).
- 37% will set their clocks back for Daylight Saving Time the morning after – 24% will do so the night before (one reader noted, “sometimes the night before, sometimes morning after... just depends on Saturday night activity :)”
- 35% say it takes them 10 minutes to a half hour to get to work. Half that many say it only takes 5-10 minutes. For 1 in 10, it’s more than an hour (I feel your “pain”).
But with all that is going on (and there has been a lot this year), as one reader reminds us: “Don’t let concerns turn into worry. Worry is like a rocking chair – it keeps you busy, but doesn’t get you anywhere.”
And – although the month is halfway done already – another noted that, “October is one of the best months of the year... cooler temps, leaves are changing (in most areas – not really in south Louisiana, though), kids are well into their school routine, playoff baseball, college football, you can still go fishing and not freeze, you can start to hunt. It really is the most wonderful time of the year (even though I love Christmas, for the most part, Tony Bennett was close, but off by a few months)! Have a great week!”
Amen. And thanks to everyone who participated in our weekly NAPA Net Reader Poll!
