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How IRS rule changes may bring an obscure retirement plan into prominence

The number of cash balance plans, a boon to high-earners, are growing 20% annually versus three percent for 401(k) plans

Author Lisa Shidler October 16, 2012 at 3:53 AM
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Steve Sansone: Advisors can differentiate themselves to decision makers and consequently be in a great position to take over a 401(k) plan.

Jason Roberts


Steve Sansone


Rich Rausser


Alkaz Makarovskiy

Elmer Rich III

Elmer Rich III

October 16, 2012 — 3:26 PM

Nice reporting. As marketers we want to highly recommend this market to advisors. Generally, these plans have significant assets and you are dealing directly with HNW individuals, business owners and their families. They are not that complicated.

The biggest sales obstacle is getting the client to make the big dollar contribution, taking it away from current consumption. It is one of the last, best tax breaks left for closely held business owners.

Also, the advisor’s portfolio management skills are needed – in contrast to 401k plans. Advisors can also team up with a local retirement plan TPA for the technical aspects. That can be a big win-win.



October 16, 2012 — 3:44 PM

Good article and a natural fit for skilled, not unskilled, RIAs. Kravitz is and has been well ahead of the Cash Balance Plan curve. Ironically, some of the insurance companies with deep retirement plan skills and natural markets have completely missed the growth in Cash Balance plans. Because they lacked investment management depth, some of those insurance companies developed robust retirement plan consulting skills decades ago. Like the rest of the financial series industry, most remain a disaster from a marketing standpoint.

Related Moves

April 10, 2019 at 11:05 PM

Mentioned in this article:

Pension Resource Institute, LLC
Compliance Expert
Top Executive: Jason C. Roberts

Retirement Law Group, PC

Top Executive: Jason C. Roberts

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