The 401(k) Market Continues to Provide Marketing Opportunities
CFO.COM released information on a recent study conducted by Hewitt Associates. Per Hewitt’s study it appears that U. S. employees are continuing to make steady contributions to their 401(k) accounts. The savings rate in employee 401(k) accounts has barely dropped from 8% in 2007 to 7.8% in 2008. In addition, only 4% of employees have terminated their accounts. Despite huge volatility and dramatic losses the 401(k) market continues to remain healthy. This finding was corroborated by a Vanguard study released a few months back. Meanwhile recent articles in the Wall Street Journal indicate that confidence in current investment providers are at historic lows and dissatisfied investors are looking for new advisors. This is extremely good news for qualified plan professionals and an opportune time to focus your efforts on the 401(k) market. When this market turns around (which may not be too long from now) the advisors managing the assets of these 401(k)’s are going to be viewed as heroes. It won’t take much to become that hero. Most investors can’t find their way in a chaotic market and it makes sense that they’re looking for investment advisors. These studies reveal that you don't have to convince individuals to continue making contributions to their retirement accounts; you just have to convince them that you’ve got a solution to their problems.