The growing retirement plan market offers ideal opportunity to increase the range of your services and the scope of your business.

The Growing 401(k)/Retirement Plan Market

The 401(k) plan is now the primary retirement savings vehicle in the U.S. with over $2.7 trillion in plan assets invested by over 47 million workers. Twenty five years after the 401(k) plans were introduced, participation rates and number of plans continue to increase. Roughly 8 out of 10 workers who are eligible to participate in a 401(k) still do. For many of these workers, their primary asset other than their home is their 401(k) plan.

This tremendous growth in 401(k) assets and participation is fueled by many factors including, the inadequacy of Social Security and changing demographics (aging baby boomers). However, the rise of the 401(k) is perhaps most directly attributable to the sustained shift away from traditional or defined benefit pension plans, where employers alone are responsible for providing retirement income for their workers. 401(k) and other defined contribution plans allow for the participants share in the responsibility for saving and investing for their retirement.

The Gap in Participant Investment Knowledge

While todays 401(k)/retirement plans utilize the internet and other recent advancements to offer more features and services than ever before, participants are still woefully unprepared to make informed investment decisions.

For employers, this gap in investment knowledge is not without risk. High profile failures, such as Enron and Global Crossing, put even greater pressure on employers to offer sound 401(k) plans to their employees.

Demand for Unbiased Advice

The combination of these growth factors and increased stock market volatility have created a historic demand for investment advisory services. And demand is growing for financial advisors who will offer unbiased advice, with no conflicts of interest. In short, for independent advisors who have been considering the 401(k) business, there is no better time to make your move.

^*Source: Investment Company Institute, 09/07