QOTW: Desired Advisor Qualities

Last week we asked plan sponsors what qualities are most important in selecting a retirement plan advisor. The single most important quality, by far, is the services provided, cited by nearly half (47.6 percent) of respondents. The brand name of the firm and the fees they charge are low priority for plan sponsors.

Comments from respondents include:

• A retirement plan advisors professional credentials seem to carry the most weight, but it really extends beyond that. A close second is their experience and third is the services they can provide.
• A very powerful and well-known firm gave incorrect information to a participant in a qualified plan on a recorded line, causing the participant to lose a substantial amount of money. They refused to take responsibility for the error although they had the evidence recorded. They were surprised when they lost our account.
• Common sense partner acting as an extension of the company.
• Current references, especially from similarly sized organizations with similar types of plans, are important to me as plan administrators are changing more often due to purchase, mergers., etc. The brand name is no longer a guarantee of quality service, unfortunately.
• Deep dive on investment offerings, overlap minimization, insight, and open communications.
• I can't choose one as most important, because they are all important.  If I had to choose one thing, I would have to say the reputation of the firm and those assigned to my plan, with regard to working with plans similar to mine, and providing all services needed for a reasonable fee.
• It also needs to be a good cultural fit between the 2 companies with a high level of trust.
• It is hard to separate the services provided and the fees.  It boils down to are the services provided at a cost that is reasonable and commensurate to what we will receive.   To me, you cannot separate the two.
• None of the factors can be ignored, but at the end of the day, what is noticed most by sponsors and employees is whether the prescribed services are performed (and performed well) or not.
• Our advisor is available to offer one on one orientations for our newly eligible.  His approach is tailored to the knowledge and understanding of each participant.
• Personality and work ethic are also factors, because it's difficult to work with someone who you can't get along with or who fails to respond or work based upon your needs.
• Response time and clarity of response is greatly valued.
• They need to provide flexible customer service.
• We changed from a 3(21) advisor to a 3(38) investment advisor, understanding it doesn't eliminate our fiduciary liability, but to increase the level of advice we were receiving.
• We expect more than just a quarterly meeting and require a wide range of services. We are pretty demanding. Ha!