How to confidently talk 401(k) management
Weave professional 401(k) management into your client conversations
73% of people want personalized financial advice on their 401(k)¹, but many people don’t know that’s an option. With your support, clients can improve their long-term outcomes and gain peace of mind knowing their retirement strategy is on track.
Initiating the dialogue
Sometimes, letting clients know you can manage their 401(k) starts with a simple question like, “How’s your 401(k) doing?” Other times, they may not voluntarily share details about their savings goals, and having the conversation takes a more nuanced approach. Use the prompts outlined here to help you tailor the conversation to your own personal style, according to client type and scenario.
Step 1: Know your client's style.
Hands-off clients trust your expertise and prefer you to take the lead.
Hands-on clients like to stay involved and value your input alongside their own research.
Step 2: Choose the topic you want to focus on.
Choose from the three scenarios we’ve outlined below: tax planning, life changes, and investing.
Step 3: Start the conversation.
Use our suggested questions to open the door to 401(k) management.
Step 4: Use our suggestion questions to open the door to 401(k) management.
Naturally guide the conversation back to 401(k) management with Pontera based on your clients’ responses.
Questions you can ask clients
Scenario 1: Tax planning
“Are you currently taking full advantage of tax-efficient investment strategies, like HSAs, Roth accounts, or other tax-advantaged opportunities?”
“Have you considered your held-away retirement accounts, like your 401(k)?”
Client says | "I want to pay less in taxes." |
|---|---|
How you might respond | "Let's look at the tax-efficient strategies available to you. Your 401(k) is one of the most important tools we have, and managing it alongside your other investments can help ensure your retirement strategy is aligned with your goals." |
Scenario 2: Life changes
“Have you had any major life changes recently, such as a new job, wedding, children, etc.?”
“Do you have any big life/lifestyle changes coming up?”
Client says | "I got a new job." |
|---|---|
How you might respond | "Major life changes are a good time to review your retirement strategy. Let's start with your 401(k) to make sure it's aligned with your goals and fits into your overall financial plan." |
Scenario 3: Investment strategy
"How confident do you feel about your current savings and investment strategy? Are there any areas where you’d like more clarity or guidance?
When you think about your longterm financial future, what are your biggest priorities right now?”
Client says | "I'd like to leave money to my children." |
|---|---|
How you might respond | "Let's make sure your 401(k) is part of that conversation. When we include it in your overall investment strategy, we can better align your retirement assets with your long-term goals." |