We often discuss how important our relationship with financial advisors is to our overall business. Not only do we consider advisors our clients, but we also built our business model on the relationship that we share with advisors. More often than not, it is assumed that we are in competition with advisors and the work they do. However, the role of a TPA was actually created to work alongside advisors and assist them in the design and support of a retirement plan.
One reason for ‘tensions’ between advisors and TPA’s came when investment firms started adding TPA services which they would offer alongside their investment products. This added a sense of competition that gave the impression TPA’s were working against advisors. ADMIN decided to take a different approach to this issue. Rather than creating a product that we could sell to employers looking to establish a retirement plan, we chose to be an independent TPA that is completely vendor neutral. This not only allows us to work with any vendor(s) involved with a plan, but it also lets us focus our energy on the recordkeeping and compliance the retirement plan requires. We realized that by working with a financial advisor who was the expert to the plan when it came to the investments, we could be the expert at ensuring complete compliance for the plan and their document.
Our relationships with advisors over the years have both built our book of business and has aided in the growth of ADMIN Partners. Currently, 85% of the plans we service have come to us through advisor referrals. Our bond with both investment companies and the advisors who work for them have helped both sides facilitate a retirement plan that best fits the need of the organization we are working with. We now assist advisors in person and remotely when presenting to school boards, non-profit organizations churches and local governments who are looking to strengthen their retirement plan.
Want to know more about how our relationships with financial advisors? Stay tuned! Later this week we are going to further discuss the benefits that both advisors and TPA’s experience when working together!