The Value of Using a TPA for Your Retirement Plan Business

ARTICLE | November 01, 2024

Written by Matthew R. Cosby

As a financial advisor, what are the strategic benefits of collaborating with a Third-Party Administrator (TPA)? These are the ways that the Retirement Plan Services (RPS) group at Heard, McElroy & Vestal (HMV) can enhance your service offerings, support your business growth, and strengthen your client relationships.

1. Identifying the Right Clients for Retirement Plan Services

• TPAs can be instrumental in helping you pinpoint clients who would greatly benefit from RPS. By leveraging your understanding of the local market and plan specifics, HMV can guide you in identifying businesses that are not only eligible but could significantly enhance their financial outcomes by adopting tailored retirement plans.

2. Expertise in Plan Design and Contribution Efficiency

• HMV brings specialized knowledge to the table, especially in plan design and the efficiency of contributions during implementation. By developing plans that maximize contributions to the owners, our team can ensure the plan aligns with your client's goals. This expertise is invaluable in creating a retirement plan that benefits both the employer and employees.

3. Enhancing the Sales Process

• Partnering with us allows you to offer customized retirement plans differentiating you from competitors. With this support, you can present plans with confidence that not only meet regulatory requirements but are also optimized for tax efficiency and participant benefits, making your proposals more compelling.

4. Growing Your Retirement Plan Business

• Utilizing our firm as a resource provides higher capacity for growth opportunities, allowing you to tap into new markets reaching a broader client base. Through a partnership with HMV, you can offer sophisticated plans that might have been outside your expertise before, ultimately growing your clientele.

5. Focusing on Your Core Expertise – Investments

• Our goal is to enable you to focus on what you do best: managing investments. By taking on the task of plan design, compliance, and administration, your time can be allocated to creating and managing investment strategies that meet your clients' financial goals. The partnership ensures that your clients receive the best of both services – proficiently managed investments and a well-structured retirement plan.

6. Strengthening Client Retention

• A partnership with HMV can improve client retention. By providing comprehensive, hands-on support and maintaining a high level of plan administration, our Retirement Plan Services group can assist in strengthening your client relationships.

7. Hands-On Support for Service Issues

• A key advantage of working with HMV is the availability of immediate support. Our administrators are accessible to quickly address any challenges, providing a higher level of service that can lead to increased client satisfaction and loyalty.

8. An Independent Perspective

• HMV offers an independent, objective perspective on retirement plan strategies. This view ensures that the plan design and administration align with the best interests of you and your client.

9. A Resource Backed by Extensive Experience

• When you partner with HMV, you're gaining access to a management team with a wealth of experience – more than 100 years combined – in retirement plan services. This depth of knowledge ensures reliability, giving you assurance that your clients and their retirement plans are in good hands with us.