Nearing the Summit

  Last year, we took some family to the nearby Great Smoky Mountains in search of a waterfall of note — one that the guidebooks said was “readily accessible.” 

That said, it took longer than we thought — we’d come up around a curve on the mountain trail, sure that it would be right there —– only to find (just) another curve. As we crossed folks coming back down from the falls, we’d (breathlessly) ask — “how much further is it?” — and while the responses were varied in terms of their accuracy and descriptive depth, they all added “it’s worth it.” 

And you know what? It was.  

Well, believe it or not, we’re nearing another kind of summit; a week from today we’ll be about halfway through the 2025 NAPA 401(k) Summit. It’s later than “normal” this year — and it’s been a long-time coming. Indeed, your Summit Steering committee has spent nearly a year putting this all together — leveraging YOUR input on topics, each has aligned themselves with a specific workshop — literally “owning” that session. That means fleshing out the focus, lining up speakers/panelists, developing a core list of key takeaways, conducting trial runs/practices, and ultimately making sure that all the materials are in on time — and that on “game day” everybody shows up and does their part.

As a result, I can pretty much promise that you won’t be able to attend every session you’d like. In fact, I’d be surprised if you don’t find yourself torn between multiple sessions all going on at the same time throughout the event. This year, we’ve even added a “technical track” for those who want to get “down and dirty” with the details!

In fact, we do approach our content a bit differently than most, I think. While it’s gotten to be pretty common for events to boast of the pedigree of their steering bodies, many —perhaps most — are essentially no more than figureheads to the actual agenda development. They’re a group to whom the folks doing the “real” work of planning, structuring and implementing the event keep updated, mostly for a sense of validation and the occasional course correct. Oh, and so that the event can “show off” the luminaries that have agreed to lend their name (and face) to promote its bona fides. Trust me — this steering committee doesn’t just steer — they row!

There are, of course, a myriad of ways to build and structure events. Note here that I haven’t said a word about our keynotes, or even NAPA After Dark (that has, in just a few short years, emerged as the pinnacle of industry networking events). But, aside from the practical information, valuable insights, vibrant networking — and yes, world-class entertainment — it’s worth remembering that among all the (other) things that set the NAPA 401(k) Summit apart — unlike every other advisor conference out there — your NAPA 401(k) Summit registration helps support the activities of NAPA — your advocacy, information and education organization — not the bottom line of some corporate media organization or some private equity firm. NAPA not only informs and educates — it literally is your voice with regulatory agencies and legislative bodies both here in the nation’s capital — and across the nation.

There’s a new administration — one whose goals and objectives with regard to retirement policy are still emerging. And while I know to some it seems we say this every year — there are real concerns about the influence that fiscal policy might have on retirement plans, the implications for Social Security funding and benefits, and legislative initiatives that (still) seek to undermine the private retirement system. 

So, if you’re one of the record 3,000+ arriving in Las Vegas next week — please lend your voice, support the ARA PAC, and get ready to leave full of energy, ideas, and a renewed fervor to make a difference.[i] 

While you’re there, please stop me (I’ll likely be running) and say “hey!” Make sure to thank the Summit Steering committee when you see them — and the ARA/NAPA conference staff as well — cause something this big doesn’t even get off the ground without a LOT of careful/thoughtful planning and on-site execution! 

I can promise you that the views from OUR Summit will be worth the trip — and when you’re back home, you’ll want to remember to share that with the folks that haven’t made it there yet! 

• Nevin E. Adams, JD

 

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[i] And if you haven’t (yet) applied to be part of the NAPA DC Fly-In Forum — well, today would be a good day to do so before it fills up as well!

What’s Top of Mind for Retirement Plan Advisors?

One of my favorite parts of the NAPA 401(k) Summit is a comprehensive annual survey we do of advisors in attendance at the Summit I call the Summit Insider.

It’s a unique opportunity to get the perspective of hundreds of retirement plan-focused advisors in a unique window of time. A chance, if you will, to see what’s on the collective minds of a very special group of individuals.

Like the networking experience of the Summit itself, it’s a chance to see what is actually on the minds and driving forces for the nation’s leading advisors. Sometimes it’s a validation—sometimes a repudiation—but it’s always insightful, all the more so in view of this year’s (record-breaking) response to the Summit Insider questionnaire.

Over the past couple of weeks, I’ve shared some insights in the NAPA-Net daily—but if you’re looking for a quick sense of the advisor perspective(s) on business practices, industry trends, team building, or future focus—well, here you go:

• There have been BIG shifts in sentiment regarding cryptocurrency (from positive to negative game changers) and state-run IRAs (ditto). 
• Managed accounts continue to be viewed negatively—a sharp and sustained turnabout from three years ago (when they were actually seen as a positive game changer).
• ESG remains the most over-hyped trend—but advisors are split as to whether it is a negative or positive game changer.
• Indeed, when it comes to over-hyped trends, ESG has demonstrated remarkable “staying” power, having topped that most over-hyped list for (now) four years running—and this year drew nearly THREE times as much support for that categorization (last year it was only twice as supported) as the #2—which was, again, cryptocurrency. MEPs/PEPs crept up to the #3 slot, while actually declining in overall ranking from its placement the past two years. 
• Cost loomed large as the biggest hurdle for managed accounts, though not far ahead of “participants lack understanding of how they work.” Most see the future of these as being offered by the advisor’s firm.
• Plan sponsor interest in retirement income options really hasn’t changed, hovering somewhere between “minimal” and “occasional.” Something else that hasn’t changed; portability remains the dominant advisor concern with these solutions. 
• Roughly two-thirds are now incorporating HSAs (health savings accounts) into financial wellness curriculums—though a third of those do so only if they consulted on the specific solution. 
• Nearly a quarter (24%) say their team’s work/life balance is “better than ever.”
• “Attracting and retaining talent” alongside “scaling your practice” remained the big issues for advisor practices over the next 12 months. Perhaps somewhat ironically, succession and advisor consolidation were in the “not important” category.
• Among support from DC wholesalers, “plan tools and resources” slightly edged out “competitive info” as valued services.

Thanks once again to all who took the time to share those (your?) perspectives and insights on the pages that follow. Thanks for being part of the 2023 NAPA 401(k) Summit—and thanks particularly to the sponsors of this year’s NAPA Summit Insider!

And please—like, share and comment! Check out the rest of the 2023 NAPA Summit Insider at https://bit.ly/23Summitinsider1

See you (all) in Nashville April 7-9 for the 2024 NAPA 401(k) Summit!

- Nevin E. Adams, JD

Are You ‘Anti’ Social?

 You may have missed it, but there’s been a bit of a “hub-bub” brewing on social media…about the impact of, and perhaps even the utility of, social media. Here’s some thoughts—and some tips. 

JD Carlson of Retireholics “fame” kicked things off with a post intriguingly titled “Forget About Social Media Content and Run Your 401(k) Business.” Oh, there were words[i] that followed, but you really didn’t have to read more than that to see where he was going.

Well, about a nanosecond after that post appeared on…social media… Sheri Fitts who, as you may know, spends a fair amount of her time and energy helping advisors (and other retirement professionals) be more effective on…social media… pushed back on JD’s basic premise. A bit.

Her argument was basically that while social media was important (we’ll come back to that), doing so without a clear focus or strategy was a mistake—but that ignoring the marketing impact of social media was perhaps a larger one.  And then, Faith Teope (who I’ve bantered with previously) took to LinkedIn to offer yet a third perspective—which seemed to be basically a message of “if it feels right for you, do it.” 

Influence Shells?

Now, all of these folks have arguably made, or at least enhanced, a name/brand for themselves on social media. They have followings, post regularly, and I think it’s fair to say—at least in the retirement space—are what would be considered “influencers.”

I’ve been on Twitter since 2008—LinkedIn even longer. Facebook (yes, I AM a Boomer, after all) since my kids got on it. I’ve read books on the subject of social media, attended conferences and training sessions (live and online) about how to use/leverage these tools—and spent a lot of time over the past couple of decades waiting for the day when the actual response to a LinkedIn (or Twitter) post…mattered. I don’t mean the “likes” that Twitter shares, or the “impressions” or number of “followers” these platforms attribute to one’s account. They’re valuable metrics, of course—widely shared (and sometimes trumpeted). 

But as much as I enjoy social media—and relish the relationships that I have found and fostered there, in my experience it's still a bit of an echo chamber—one frequented by people who are already “on” social media. Indeed, it seems for the very most part the people who are “there” are there to promote the use and value of social media to those not yet in that “club.” Not that you won’t find valuable content there—but plan sponsor clients? Participants? 

Don’t get me wrong—I am one of those folks “on” social media. I have tons of “followers” on LinkedIn, and spend some time each week cultivating and expanding that reach. People read and comment on what I post there, and I’m grateful and appreciative of that engagement. Having said that, I continue to do what I do there not because I see much current value in doing so—but rather because I feel that one day there MIGHT be—but don’t sense that that day is here yet.[ii]

What to Do (and Not)

So, at the risk of being non-controversial, I’m going to concur (I think) with most of what has already appeared in this discussion thread—and offer some unsolicited social media “guidance”:    

First things first. Doing social media, and certainly doing social media “right” takes time and energy, and my sense is that the ROI payoff for most is modest at best. It will take more time than you think, and likely return less than you hoped—and that’s time away from the business of running your business. If you’re not focusing on the business end of your business, no amount of two-minute TikTok videos (however captivating) is going to help that. Let me repeat—first things first. Unless, of course, you plan to get into the business of teaching folks how to do social media.  

If you’re going to do it, do it right. That means having something interesting to say, something worth sharing. Share it regularly—and professionally. This is about building a brand (you). But remember you’re marketing you and your expertise—not a product. You know how you fast forward past the commercials on a DVR? People will scroll past sales pitches even faster (though LinkedIn may still count that as a “view”).

Set reasonable, modest goals. I have had the benefit (inherited, for the most part) of a large and widespread email audience for more than two decades now (though I hope I’ve since earned and expanded on that). My expectations for social media engagement were (and remain) high, likely too high, compared to email clicks and opens. Know that going into it you probably won’t get much, if any, in the way of “return.” 

Nurture the engagement you do get. Like, share, forward—but by all means COMMENT as you do on the content you see as valuable. It will be good for your visibility, likely expand your network—and it will keep you engaged with topic(s) you care about. It’s also good for your “shelf life.”        

Remember that you don’t need to do it. Honestly, my sense is that most of the folks you ostensibly want to reach (clients and prospects) aren’t (yet) spending a lot of time on LinkedIn (or Facebook, or Twitter, or even TikTok—at least not intentionally). Doing it before you’re ready will be counter-productive at best, and if your clients—prospective or current—aren’t “there,” do you really need to be?  If you’re not yet ready—don’t. 

After all, there are plenty of advisors enjoying a great deal of success today…without relying on social media.

- Nevin E. Adams, JD

 

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[i] For those of you who like more words, “What’s more effective, a post on LinkedIn with 11 likes and one comment from your co-worker or good old-fashioned marketing concepts like strategic partnerships, custom emails, networking, webinars, mailings, events, email blasts, client referrals programs, etc.? For most of you, the latter will crush 100% of the time when talking about actual ROI.”

[ii] And if you’re unaware of the “hub-bub” about which I started this piece, you are proving my point.

An Insiders' Perspectve(s)

There’s nothing like the NAPA 401(k) Summit—particularly being at the NAPA 401(k) Summit after the many months and a worldwide pandemic that kept us all apart. 

Each year for the past four years we’ve taken advantage of that gathering (including in 2020 when we gathered “virtually”) to reach out[i] to the nation’s top retirement plan advisors to glean their perspective on a wide range of issues relating to their practice—and practices. 

This year’s Summit Insider was no exception—as we “consulted” with more than 500 retirement plan advisors and home office staff on a range of issues—the criteria in selecting—and rejecting—key business relationships, the things that are over-hyped—and the things that no one is talking about—but that everyone, at least in the eyes of these “Insiders,” should be. We also got some insights on retirement income, important features in choosing target-date funds, rollovers and outcomes. 

We’ve included a number of verbatim comments on what these “Insiders” wish that plan sponsors knew, or knew better. Sometimes those words are harsh, sometimes reassuring—but we asked advisors for their insights, and they were generous in doing so. I only wish we had room to share them all.

Key Findings

Among the key findings:

• Glidepath philosophy topped the criteria on selecting target-date funds, slightly outpacing 5-year performance.
• More than half of the advisors surveyed focus on measuring outcomes at the plan level during every plan review.
• Nearly two-thirds deliver financial wellness as a component of their current service offerings—another 17% do so through an external partner.
• ESG remains the most “overhyped” trend in the industry, outpacing robo-advice and MEPs/PEPs by a significant margin.
• Portability was deemed the most influential/compelling factor to respondents’ plan sponsor clients in considering a retirement income solution. It was also the most cited factor influencing advisor considerations.
• Client support and market intel were tied as the most-valued support from the DC wholesaler partners.
• Service was—still—the dominant criteria in selecting a TPA partner.  
• Rollovers, the SECURE Act’s expansion of a retirement income safe harbor, including lifetime income disclosures on participant statements, managed accounts, and e-delivery were all rated as “positive game changers.” However, a third rated managed accounts as “much ado about not much.”
• Legislation to allow student loan repayment matching was cited as a positive gain changer by 7 in 10, and legislation to expand emergency savings accounts drew “positive game changer” support of 60%. 
• The Labor Department’s fiduciary (re)proposal? A plurality (43%) said it was “too soon to say.” Which, as we’re still waiting for it, seems reasonable (if not obvious). 
• Recordkeeper consolidation was viewed as a negative game changer by nearly half (46%), though a quarter (23%) saw it as a positive.

As for what they wished plan sponsors knew more about, the list included “their roles and responsibilities,” the role(s) of other parties servicing the plan, fees, plan design, plan operations—oh, and “our roles,” of course. The verbatim quotes here are, as you might imagine, “priceless.”

A special thanks to the hundreds of retirement plan advisors who took the time to provide such thoughtful responses—and to the sponsors of this fourth edition of the Summit Insider. Which NAPA members can find in your mail—or online at https://www.napa-net.org/industry-intel/summit-insider.

- Nevin E. Adams, JD

Game Changers or (Just) Rearrangers?

In these extraordinary times, there’s a lot of change in the mix—and new legislative and regulatory developments that could be “game changers”—or perhaps not-so-much.

Even in the most normal of times, it’s customary for businesses in evaluating future prospects to consider/identify elements under a “SWOT” analysis: strengths, weaknesses, opportunities or threats—and the recent Summit Insider gave us a chance to see what is on advisor minds now—and for the days ahead.

For this year’s Summit Insider, we asked respondents[i] to weigh in on how they saw various portents of change: as a game changer, for good or ill, something about which much ado had been made without justification (those that are mere “rearrangers”)—or was it simply too soon to say? 

Here’s what they thought about: 

1. MEPs/PEPs (Multiple Employer Plans/Pooled Employer Plans)

40% - Too Soon to Say

38% - Positive Game Changer

20% - Much Ado About Not Much

12% - Negative Game Changer

Arguably one of the most-anticipated changes from the SECURE Act was the advent of (truly) “open” multiple employer plans (MEPs), rebranded and somewhat refined to what the legislation calls pooled employer plans, or “PEPs.” Long championed as a means to help close the coverage gap, particularly among smaller employers, by providing certain structural and cost efficiencies of scale—there are some details yet to be worked out by regulators (they aren’t effective until Jan. 1, 2021). 

More recently, MEPs have found themselves in the crosshairs of litigators who allege that, despite those efficiency claims, some providers have charged that some have charged excessive fees and not fulfilled their fiduciary obligations. All of which may, despite a minority view as a game changer, left a slim plurality calling it “too soon to say.”  

2. DOL’s Fiduciary Reproposal

37% - Too Soon to Say

26% - Much Ado About Not Much

26% - Positive Game Changer

11% - Negative Game Changer

Perhaps no regulatory undertaking in recent memory has occupied the focus of advisors—and advisor organizations—as the reconsiderations of the fiduciary rule. First in 2011, and then again in 2015, the Labor Department saw fit to reconfigure both ERISA’s fiduciary standard, the conditions under which a prohibited transaction exemption would be granted, and the type of retirement accounts to which those standards would be applied. 

Ultimately upended by the Fifth Circuit Court of Appeals with the plaintiffs’ challenge led by a legal team led by the man who would eventually become Secretary of Labor of an administration that would repropose a different version—one that, unsurprisingly, struck advocates of the prior administration’s efforts as “inadequate” to say the least. Regardless, the proposal, which by title anyway, purports to be “Improving Investment Advice for Workers & Retirees,” not only “restored” the 1975 five-part test’s standards on the conditions for advice to constitute “investment advice,” as well as a new prohibited transaction exemption allowing investment advice fiduciaries under ERISA to receive compensation, including as a result of advice to roll over assets from a plan to an IRA.

Whatever lies ahead for the proposal in the comment period and reconsideration—it’s doubtful that it would last long in its current form following a change in administrations. That, if nothing else, might explain the stance of respondents to this year’s Summit Insider—a plurality of which say it’s “too soon to say” what kind of impact it might have—or if it comes to life at all.

3. SECURE Act’s Expansion of Retirement Income Safe Harbor

54% - Positive Game Changer

27% - Too Soon to Say

15% - Much Ado About Not Much

3% - Negative Game Changer 

Among its many changes, the SECURE Act contains three sections that, taken together, are expected to have a positive impact on the provision of retirement income products in defined contribution plans: the reporting of a monthly lifetime income amount on participant statements, allowing for the portability of “in-plan” lifetime income benefits, and an expansion of the safe harbor for the prudent selection of lifetime income providers. 

The first is already in place among many providers (albeit not necessarily using the DOL’s proscribed method), the second kicks in only after an in-plan option is in place—but the third—additional insulation against what many see as the biggest stumbling block to plan sponsor adoption of these options—well, could that be a game-changer? Summit Insiders seem to think so.

4. E-delivery 

86% - Positive Game Changer

4% - Much Ado About Not Much

3% - Too Soon to Say

1% - Negative Game Changer

When the Labor Department unveiled the final e-delivery rule in May, it was the culmination of years of hard work of advocacy. The timing was precipitous, coming in the midst of the COVID crisis that separated so many workers—and recordkeepers—from their offices. That timing may slow the full impact out of the blocks, but over a decade the Labor Department anticipated that the new safe harbor will save plans approximately $3.2 billion net, annualized to $349 million per year (using a 3% discount rate)—money that could well be better spent on retirement savings. That has the makings of a positive game changer—and that seems to be just how the Summit Insiders see it.

6. Printing/Showing Lifetime Income Disclosures on Statements 

52% - Positive Game Changer

26% - Much Ado About Not Much

15% - Too Soon to Say

6% - Negative Game Changer 

We’ve already noted the three lifetime income enhancements in the SECURE Act, and if this one is already in play with many recordkeepers (and therefore, perhaps explains why a quarter of Summit Insider respondents say it’s “not much”), it’s potential to help shift the focus from accumulation to decumulation is largely unquestioned. 

Of course it remains to be seen what might emerge when the (still) interim final rule is finalized—and what changes recordkeepers that have already made the move to produce such illustrations on their own might have to embrace, and when. Still, there’s something to be said for consistency of approach—and universality of availability. 

Said another way—it’s “show” time.

- Nevin E. Adams, JD

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[i] Who Are the Summit Insiders?

Just over 400 advisor and home office “attendees” of the 2020 NAPA 401(k) Cyber Summit responded to this year’s Summit Insider. Just under a third (32%) had been a retirement plan advisor for more than 20 years, and a quarter had been for 15-20 years. There were, however, 14% who had less than 5 years experience in that role, and a nearly equal number (13%) that had been in the role for 5-10 years. 

Their target markets were similarly diverse. About a quarter each targeted plans with less than $5 million in assets, between $5 million and $10 million, and between $10 million and $25 million. The remaining quarter were divided between market segments ranging from $25 million to more than $41 billion in assets.    

First Hand Experience

Our view during Super Bowl XLVII.

There are some things in life that have to be experienced first-hand.
Several years back, my daughter won an all-expenses-paid trip to the Super Bowl for two – and, to my delight, she chose to invite me to go with her.

Now, I’m sure some of you have been to a Super Bowl, but it was my first (and, considering ticket prices, I’m guessing my last). And while I’m sure the view from the comfort of home and a big screen TV offered a “better” view of Beyonce’s halftime show, there are things (and people) you see when you are at the event that don’t make a TV producer’s selection (particularly when you happen to be at the Super Bowl where the field lights went out for 34 minutes). Let’s face it, it’s one thing to say you watched the Super Bowl – and something else altogether to say you were there!

You wouldn’t know it from the headlines, but there’s actually a lot going on here in our nation’s capital. Like a smoldering ember, in no time at all, and with little warning, things can go from (apparent) nothingness to regulation or legislation that can have a dramatic impact on our lives and livelihoods (remember Rothification?). It’s a dynamic that’s easy to miss when you “swing by” for a visit – but one that our Government Affairs team works very hard all year long to keep up – and to keep NAPA members up-to-date and informed.

We’re fast approaching our sixth annual DC Fly-In Forum. I remember attending the first one as a “special guest,” and being struck even then by the quality of the program and speakers. More importantly, the room was full then – as it continues to be – of the nation’s leading retirement plan advisors, networking and engaging not only with each other, but with some of the most influential voices in Washington.
This year – with the ink not quite dry on the SEC’s Regulation Best Interest proposal, and with the status of the Labor Department’s fiduciary proposal unresolved (for the moment), we are slated to have SEC Commissioner Hester Peirce, and have invited Assistant Secretary of Labor Preston Rutledge to join us. We’ve lined up a special session on advisor-focused litigation with the Wagner Law Group’s Tom Clark. And Rep. Richie Neal (D-MA) – a long-time proponent of retirement savings, ranking member of and a potential Chairman of the Ways and Means Committee (should the House “flip”), and author of a “game-changing” retirement plan proposal – will also be part of this year’s Fly-In. We’ll also have what promises to be a highly interactive and engaging discussion about a new proposal to shore up retirement security via mandatory add-on savings accounts.

And that’s not all.

The 2018 mid-term elections are just around the corner — and the keynote speaker at the NAPA DC Fly-In Forum will help approved delegates understand what it might bring. We’re talking about CNN Chief National Correspondent John King, anchor of “Inside Politics.”

And that’s (still) not all.

For me – and for dozens of advisors who have participated over the past five years – the most impressive aspect of our Fly-In Forum is the second day, where delegate-advisors have an opportunity, assisted (and prepped) by the NAPA GAC team, to meet with legislators and their staff on Capitol Hill, to share your perspectives, ideas and concerns, based on your front-line, real-life experiences working with retirement plans, plan sponsors and participants.

Whether you’ve done this a dozen times, or have never had the opportunity, the NAPA DC Fly-In Forum is an amazing “first-hand” experience. For those ready to get off the sidelines and contribute to a real difference in retirement policy, you won’t find a better “ticket” than the NAPA DC Fly-In Forum.

I can’t promise it will be quite like going to the Super Bowl – but then, you never know.

p.s.: Seats are filling up fast for the NAPA DC Fly-In Forum, July 24-25.
PLEASE NOTE: Delegates to the Forum must:

• be a NAPA member;
• be responsible for $100M+ in plan assets, 10+ plans and 2,000+ participants; and
• have 5+ years of experience servicing retirement plans.

You can apply today at http://napadcflyin.org.


- Nevin E. Adams, JD

‘Making’ the Lists

Several years ago, I was surprised (and quite pleased) when a friend reached out to tell me that I had made it to one of those retirement industry lists.

I was sure he was pulling my leg, of course – but after a couple of congratulatory emails from other associates, I decided to check it out, and sure enough – there I was.

At the time, I remembered being more than a bit humbled at my inclusion alongside a number of individuals who, at least in my estimation, were a much bigger deal than I. Still, the recognition was gratifying, particularly when you consider how many very special people in so many different walks of life, work hard, make a difference, have an impact, and yet never really get any kind of public acknowledgement.

As much as I like being on those lists, it has been my great good fortune over the years to have a hand not only in evaluating the composition of such accolades, but in determining the categories of recognition. The first, years ago, had to do with plan sponsors rating their providers, followed by the development of the Retirement Plan Advisor of the Year award, and Top 100 Plan Advisors (albeit at another publication). Here I have been glad to have a hand in elevating and expanding the quality and importance of our Top DC Wholesalers (the “Wingmen”), the Top Young Advisor list (our “Young Guns”), and more recently in launching the Top Women Advisor list and this year our first-ever Top DC Advisor Team list.

We’ll be publishing this year’s list of Top Women Advisors shortly – and the list of Young Guns just after the new year (voting on the latter remains open through Dec. 15 at www.napatopyoungadvisors.org). Each year we get more nominations, and yet each year the quality of the candidates rises as well. Clearly the competition, not only “out there,” but here, is fierce. And well it should be.

Each list has unique attributes, of course, and participating in the development and refinement of the criteria – making those lists – is always a learning experience, not least because it gives me the privilege of having those discussions with some of the nation’s leading experts on our panels of judges.

I am pleased and proud to be able to acknowledge the good and valuable work of so many industry professionals – including those who may not make the list, but who nonetheless are making a difference in the nation’s retirement security every day.

But as much as there is to be learned from the evolution of the objective, quantitative standards for each list, there is the learning that comes from the qualitative responses of the nominees – the individuals who not only make those lists – but who, in their words and deeds – make those lists important.

- Nevin E. Adams, JD

Your Money’s Worth

It’s time to put your money where your mouth is.

In just a few weeks, many of you will be at the NAPA 401(k) Summit in Las Vegas. This will be my third Summit since joining the organization, though I have been to, and spoken at, a good number of them over the years.

This year, as in years past, the steering committee, agenda team and NAPA leadership have been hard at work for months, developing the program, fleshing out the agenda, lining up speakers, and this year assigning session “owners” to make sure that you get maximum bang for your buck in terms of information and session quality.

We’ve taken your feedback on topics and format, expanded the peer-to-peer networking, and added a brand new component called “super” sessions. We’ve got some amazing keynote speakers, enhanced our plan sponsor panel, and, for the first time ever, incorporated a new networking opportunity called “Summit After Dark” which will include some incredible entertainment in world-class environs. Sure, you’ve been to the Summit, sure you’ve been to Vegas – you may even have been to Vegas for the 401(k) Summit. But I promise you this one will be different, “better” in terms of focus, depth of information, and interaction, and certainly bigger. While we try to remind folks that it is the only retirement plan advisor conference developed by plan advisors for plan advisors. The proof of that is, quite literally, in the program that has been developed for you.

What’s (Really) Different

Beyond all those important reasons, there are two other major considerations for you in attending this year’s NAPA 401(k) Summit. First is the issue of tax reform. This is something that we have been writing about on NAPA Net for months now, but with the 2016 election having given control of Congress and the White House to a single party, the odds for significant change – change on the order of the Tax Reform Act of 1986 – is significantly higher than we might have otherwise expected. Those consequences could be enormous on workplace retirement savings in the months to come – they certainly have been in the past. You will want – and need – to know what is afoot, and there is no better place for you to do that than the NAPA 401(k) Summit, particularly with the insights you’ll get from our “From the Hill to the Summit” keynote.

The other consideration is related, but it is not something we generally push. While the number of quality advisor events has certainly declined over the years, I know you still have several to choose between. For some, that choice is based on location, for others timing, and for still others cost. For some, of course, it can be all or more than one of the above – all
are valid considerations.

But among all the things that really set the NAPA 401(k) Summit apart – one thing stands out, this year more than most. Quite simply, it is that – and unlike every other advisor conference out there – your NAPA 401(k) Summit registration helps support the activities of NAPA – your advocacy, information and education organization – not the bottom line of some corporate media organization or some private equity firm.

That’s right – in addition to the insights, information, networking that you may get at some other events, your attendance at the NAPA 401(k) Summit is a unique investment in your future – and the future of your profession.

It is, quite simply, a great way – perhaps the best way – to put your money where your mouth is.

I hope to see you in Vegas! Register today (if you haven’t already) at www.napasummit.org.

- Nevin E. Adams, JD

6 Things 401(k) Participants Need to Know

Our industry spends a lot of time and money educating workers about the advantages and mechanics of saving for retirement.

But here are six things I think too often go unsaid.

Your 401(k) isn’t free.

That’s right, it isn’t free. It may be heavily subsidized by your employer, and you’re likely paying a lot less for the fund(s) and features you have access to than if you were to try and buy them on your own (say, via an IRA or brokerage account) — but even then, it’s probably not “free,” nor should you expect it to be. But if you don’t know how much you are paying, you should find out.

You’ve probably been provided some information about your 401(k) plan fees already. You can find out how to use that information here. More information about 401(k) fees is available here.   

That employer match isn’t “free” either.

You may have heard that you should save enough to receive the full employer match — that “you don’t want to leave that free money on the table.” It is, of course “free” money to you when you save in your workplace retirement plan. But not every employer provides a matching contribution, and it’s a real out-of-pocket cost for those that do. Remember that, if you’re lucky enough to have an employer who makes a matching contribution — and thank them.

Saving to the level of the match is probably not enough.

As noted above, many employers choose to encourage your decision to save for retirement by providing the financial incentive of an employer matching contribution. While there are a number of factors that go into determining the amount and level of the match, how much you need to set aside for your own personal retirement goals is almost certainly not one of those factors.

You certainly don’t want to leave any of that match on the table by not contributing to at least that level. But if that’s where you stop saving, you’re probably going to come up short.

How much you save is more important than how you invest what you save.

There are bad investments that can cost you money, and good investments that can help your account grow faster. But what really matters in achieving financial security for retirement is how much you save (including the amount of the employer match, if any).

For more information, see “Missing the Forest for the Trees” here.  

If you’ve never tried to figure out how much you’ll need to live in retirement, you may not live very comfortably in retirement.

Surveys routinely show that most Americans have not even tried to guess how much money they will need to live on in retirement, much less actually made an educated guess. Sure, it sounds complicated, and sure, things can change over time — and yes, you’re busy. But saving for retirement with no idea of how much you might need is a bit like going on a long trip in a car you don’t know with a gas gauge that isn’t working.

Chances are, your 401(k) plan has some resources that will help you do the calculation. If not, or if you’d like a “second opinion,” try the free Ballpark E$timate at choosetosave.org. 

If you don’t know what you’re doing, get help.

And not the kind you might get from Joe in the lunchroom, Sally in accounting or “experts” you’ve never met. If there’s a professional advisor working with your 401(k) plan, that’s a great place to start.

- Nevin E. Adams, JD