Retirement Plan Advising

What can sports coaches teach us about retirement plans?

Jonathan Young

October 29, 2024

In the world of sports, the role of a coach is instrumental in shaping the mindset, strategy – and ultimately – the success of athletes. For financial professionals, strategizing what is best for your clients can often feel like a high-stakes game. Yet, as any seasoned coach might tell you, success lies in the fundamentals and the incremental victories.

 

Adding retirement plans to your wealth management practice can help grow your business.  “Winning is not a sometime thing; it’s an all the time thing," revered football coach Vince Lombardi once said. This mindset is crucial for financial professionals who are considering adding (more) retirement plans to their wealth management practice.

 

Imagine focusing your strategy on winning just two retirement plans a year. With each plan hosting 30 participants, by the end of a decade, you could be guiding the futures of 600 new plan participants. In this hypothetical example, that could potentially equate to an added $60+ million in assets. This long-term, incremental approach may be one of the fastest ways to increase your assets under management.

Winning just two plans a year can add up over time

Graphic showing the evolution of a book of business in Year 1, Year 2, Year 3 and Year 10. Each year has an equal number of “Takeover” plans (2.5 million dollars in assets, 30 participants, $150,000 in annual contributions) and “Startup” plans ($0 in assets, 30 participants, $150,000 in annual contributions). In Year 1, there is one of each (2 plans, 2.8 million dollars in new assets, 60 plan participants). In Year 2, there are two of each. In Year 3, there are three of each. Fast-forward to the end of 10 years, and there are 10 of each (20 plans, more than 60 million dollars in new assets, 600 plan participants).

Hypothetical example for illustrative purposes only. Not intended to portray an actual investment. Assumes 8% average annual investment growth, a $2.5 million asset transfer from a takeover plan each year and $150,000 in new annual plan contributions from both plans each year.

What this hypothetical shows is that even with a modest commitment to servicing retirement plans, there is potential for a long-term, incremental growth strategy for your practice. The cumulative effect of securing just two retirement plans a year can be transformative.

 

“What we can control is our performance and our execution, and that’s what we’re going to focus on,” said Bill Belichick, the football coach who helped the New England Patriots win six Super Bowls. To become more familiar with the intricacies of retirement planning and the specific needs of plan sponsors, financial professionals can work as a team. For example, by using games to help you connect with clients, you and your colleagues can practice having conversations about retirement plans and discover new ways to successfully add retirement plans to your practice.

Don’t let opportunity pass you by

Baseball legend Yogi Berra once said, “When you come to a fork in the road, take it.” As state-sponsored retirement programs gain traction, more businesses may be exploring their retirement plan options. The SECURE 2.0 Act of 2022 introduced provisions that encourage more businesses to establish retirement plans and boost participation rates among employees. This creates an opportunity for financial professionals to step in and offer tailored retirement solutions before businesses default to state programs.

 

John Wooden, the esteemed basketball coach for the University of California, Los Angeles, famously said, “Be quick, but don’t hurry.” By taking the time to understand the nuances of recent regulatory changes and the specific needs of employers, you can carve out a niche for yourself in the retirement planning landscape. 

Set the right priorities

Women’s Basketball Hall of Fame coach Pat Summitt said, "You have to discipline yourself to do something the right way until it’s second nature.”

 

To learn how to establish your priorities and form better habits, consider reading a great book by Dr. Jason Selk and Tom Bartow called Organize Tomorrow Today. Jason Selk is a trainer for world-class professional athletes and Tom Bartow is a former basketball coach, a retired Edward Jones advisor and former Capital Group associate who has trained tens of thousands of financial professionals over his career. Organize Tomorrow Today offers a streamlined set of core habit-building principles that can help you focus on your most essential activities.

 

Legendary football coach Tom Landry said, “Leadership is getting someone to do what they don’t want to do, to achieve what they want to achieve.” As leaders in the industry, that’s what you do. Adopting a strategy of winning just two retirement plans a year can lead to substantial long-term growth for your clients and your practice. As in sports, the key to success lies in the fundamentals, the incremental victories and the unwavering commitment to the long game.

Read important disclosures

headshot-Jonathan_Young2

Jonathan Young is a senior national accounts manager with 34 years of investment industry experience (as of 12/31/2023). He holds a bachelor’s degree in speech communication from Old Dominion University, and he holds the Professional Plan Consultant® designation.

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