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LPL’s New Worksite Financial Solutions Hinges on Engaged Advisors

In what they are calling “Worksite Financial Solutions,” LPL Retirement Partners has rolled out a program designed to engage plan participants in designing and implementing a cradle-to-grave financial planning program using a combination of technology and personal advice delivered by advisors.

Working with various partners, including Financial Finesse, WMSI and Morningstar, LPL has designed a program that they believe will improve participant success through an engaged advisor. The Oct. 27–30 meeting in Phoenix included 321 retirement-focused plan advisors with over $54 billion in assets and 19,000 plans under management, as well as 62 home office people supporting this group. The program consists of four steps.

Step 1: Transitioning

Step 1 of the program, according to Adam Sokolic, LPL’s SVP in charge of the program, includes transitioning new participants to roll-in and consolidate retirement assets. LPL has set up a proprietary call center in North Carolina that will make contact 30 days after an email is sent if there is no response. Money can be rolled in using the technology or pipes already built by WMSI, which works with many of the major platforms.

Step 2: Education

Step 2 is custom-designed education based on a survey completed by participants, leveraging Financial Finesse materials and portals initiated by an email sent by plan sponsors branded by the plan advisor. Plan-level reports on the health of the plan by age or wage bands are provided, which determine the types of education needed.

Step 3: Advice

Step 3 includes advice leveraging Morningstar’s managed account programs, with customized allocation models for LPL. These are private-labeled by the plan advisor, who sits down with each interested participant one-on-one for an additional fee. Morningstar will move the money, leveraging their technology, which is integrated with many record keepers. So far four record keepers have signed up for the LPL program. Advisors are backed up by LPL call centers that are private-labeled to each advisor.

Step 4: Distribution

Step 4 starts the distribution phase when assets are rolled out of the plan. LPL and the advisor are notified of a separation event, initiating a letter and, if necessary, contact from the LPL call center leveraging WMSI technology to move the money. Advisors can set the minimum account balances, which may also include outside assets. Accounts below the minimum will be handled by the LPL call center.

The Key: Engaged Advisors

Bill Chetney, who leads the Retirement Partner group, said that while online surveys alone may not get a strong response, an engaged and informed advisor will make the difference. Industry experience shows that only a small percentage of participants will engage in a pure technology solution and that it can be difficult for advisors to create their own integrated solutions. LPL intends to use a combination of experienced plan advisors, outside content and technology experts like Morningstar, WMSI and Financial Finesse, as well proprietary technology, call centers and practical industry know-how to create a cradle-to-grave, customized solution intended to improve outcomes — and, of course, attract more focused plan advisors.

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