03.01.24

Financial Advisors Push To Manage 401(k) Assets

by: Natalie Lin

A combination of demand for holistic financial services, along with technology, may prompt financial advisors and 401(k) plan management to work closer together, according to industry players. For financial advisors who were managing defined contribution (DC) assets, there is now an easier system to do so; for those who aren’t, a growing need for financial advice among workers who have been saving in DC plans for decades may prompt them to start looking for a solution. Jay Jumper, founder, president and CEO of Future Capital, says he started his business after seeing a need to connect financial advisors to qualified retirement plan investments. At the time, his mother had retired from the local school board with $54,000 in her retirement account, and he was working at what is now Truist Bank in the trust department, managing high-net-worth customers. “What I saw very quickly as nobody was really there to help my mom manage her $54,000 like somebody would make a high-net-worth customer,” Jumper says. “I saw that there’s a lot of people like my mom out there, and they happen be holding a 401(k) or 403(b) in the DC marketplace.” Jumper notes the gap in the marketplace remains for providing advice to 401(k) participants, with only 3% having a relationship with a financial advisor. Among the 3% of advisors, approximately 90% to 95% of them do not allow their advisors to help their customers 401(k) assets.

Read the full article on Plan Adviser