“There are two ways to be fooled. One is to believe what isn’t true; the other is to refuse to believe what is true.”
–Soren Kierkegaard
I prospect for new clients just about every day. I can’t help it. Over 34 years of my prospecting habit is hard to break.
Last week I received a copy of an individual company 401(k) retirement plan account statement from the lady that checks my receipt when I leave Costco each week. In case you need to know, Costco offers their employees a very good 401(k) plan.
Individual investors often resist my initial approach to them regarding independent, third-party investment advice for their company 401(k) retirement plan accounts. Their excuses fall into two main categories.
“I don’t have time for this now”
At face value, this is the most reasonable response. Lawyers bill by the hour. Physicians bill by the procedure. There is always “the next meeting” for a corporate executive. Time is money for any highly-compensated, time-constrained individual investor.
I heard this exact same response from an individual company 401(k) investment advice prospect at a Fortune 500 company in my local market last month. I solved this specific problem in a rather unique way.
With nothing to lose on the prospecting call, I asked him how long it took him to walk from his parking space at work to his office. He told me it took him a little over five minutes; another ten minutes if he stopped for coffee.
The prospect agreed to meet me in the 15-minute window between when he arrived at work and reached his desk. I met him at the coffee shop on the first floor of his office building one morning.
I provided the prospect with a two-page analysis of the annual costs and investment performance of his existing company 401(k) retirement plan mutual fund investments.
I never sat down with this prospect. During the approximately ten minutes in line for coffee, the prospect agreed that there was a large enough investment management problem in his company 401(k) account to allow for further discussion with me.
The prospect never varied from his normal, everyday work routine. The only thing that changed that morning was his “walk-and-talk” with me regarding his current company 401(k) mutual funds.
A unique approach that solved the “I don’t have time for this” prospect objection. I did not even have to buy the coffee.
Within a couple of weeks, I secured my first sit-down meeting with this prospect. Predictably, I was immediately faced with the next most popular individual company 401(k) retirement plan participant investment advice objection.
“Why do I need to pay someone to manage my 401(k)”
In my experience, this prospect excuse is easiest to overcome. I almost feel sorry for the prospect who makes this statement to me. In 90% of the cases, “I got them.”
The specialization in the business world today cannot be ignored. High level proficiency does not transfer between professionals these days. No one can be expected to be an expert in all areas of their business and personal life.
A good lawyer, a capable tax advisor, and an insurance professional should all be important members of your “money team.” I would argue that an experienced investment advisor should be part of that same team assembled by every individual investor.
The age of specialized investment management technology is now available to help improve the investment management decisions required in your company 401(k) retirement plan account.
Individual company 401(k) retirement plan participants who are not especially gifted or comfortable with navigating their retirement plan mutual fund menus now have professional investment advice alternatives.
You no longer must feel guilty about your inattention to your company 401(k) retirement plan account. There is no need to take time away from your family or career to figure out an investment management problem.
There is a growing list of independent, third-party, registered investment advisors who are trained in the investment performance ranking and cost analysis of your company 401(k) retirement plan mutual funds.
Don’t continue to feel the ongoing investment management decision anxiety of “what to buy.” There is a clear and easy to understand answer available specifically for your company 401(k) retirement plan options.
At the current stage of the U.S. stock and bond market cycles, an even more important investment management question now is “when to sell.” The investment management technology today provides for the principal preservation of your company 401(k) retirement plan assets.
Your company 401(k) retirement plan account is likely one of the biggest pieces of your investment assets. This is the age of specialization. There is no reason on earth to continue to ride the stock market roller coaster up, and back down, every few years.
Ric Lager
Lager & Company, Inc.
