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۴ billion from tax deferred savings plans back in 2013

Is The 401k Plan Market Still The Place For Advisors To Be

Exactly when 401(k) defined contribution plan outflows surpassed in flows appears to be a matter of some debate.

moncler outlet But what is beyond dispute is that over the next decade or so, 401(k) defined contribution plan outflows will surpass in flows. This will happen as the baby boomers draw upon their retirement moncler outlet online savings and millions reach 70, the age trigger for required minimum distributions. moncler outlet

cheap moncler coats Call it the end of the great bull run for defined contribution in flows, but what does that mean for advisors who work with 401(k) and other defined contribution plans? cheap moncler coats

For the last 20 years, they were in the right place at the right time. Indeed, some advisors may not even have had to lift much more than a finger to take credit for gobs of retirement dollars pouring into retirement plans they advised.

Those days are coming to an end, if they haven’t ended already. So it’s worth asking whether the defined contribution plan market, already a relatively low margin business, is still attractive for advisors as withdrawals accelerate and huge mutual fund complexes cut fees still further.

Are plan advisors still in the right place, even if they are no longer quite at the right time?

moncler sale As is often the case with market movements, bullish and bearish sentiments seem to coexist. moncler sale

Some advisors suggest that the defined contribution marketplace is no longer the fat, lucrative place it used to be as retirement plans head for consolidation and commissions drop.

moncler outlet sale “The defined contribution market will not roar ahead in the future because those baby boomers will start taking out the bigger rollovers on cheap moncler jackets sale the back end,” Chip Roame, moncler outlet store managing director with Tiburon Advisors in Tiburon, Calif., told clients in a recent webinar. moncler cheap moncler jackets outlet sale

Members of moncler sale Generations X and Y will be investing in defined contribution plans.

cheap moncler jackets However, Roame said, both generational groups will be investing much smaller amounts and rollovers will continue to pop out of the defined contribution market. cheap moncler jackets

moncler mens jackets Other advisors seem to think the nation’s trillion dollar defined contribution market still has much to offer advisors. Even in an era of declining flows, advisors have a role to play in helping retirement plans tweak product platforms to fit the needs of a new generation. moncler mens jackets

buy moncler jackets With an estimated $6.5 trillion sloshing around 401(k) and other defined contribution retirement plans at the end of the third quarter last year, according to the Investment Company Institute, that’s still “beaucoup bucks.” buy moncler jackets

moncler outlet store Tipping Point a Nonissue moncler outlet store

Reaching the contribution distribution tipping point is a nonissue for plan participants, although it may mean a shrinking asset base for the plans themselves. That’s the word from Charles Sachs, moncler jacket sale principal with Private Wealth Counsel, a registered investment advisor (RIA) based in Miami.

“This is not one pool like Social Security, but investments spread across tens of thousands of providers and investments,” Sachs told InsuranceNewsNet. “I don’t see any reason why those with money invested in a 401(k) have anything to be concerned moncler sale outlet with.”

With the leading edge of the baby boomers approaching the age at which their required minimum distributions kick in, moncler outlet uk “money is going to move and it’s just a matter of capturing it while it’s on the move,” said Kristi C. Sullivan, owner of Sullivan Financial Planning, a Denver based fee only RIA.

cheap moncler When, where and how money moves will offer new opportunities for advisors, even if the year outflows moncler outlet jackets surpass in flows seems up for discussion. cheap moncler

The Wall Street Journal, using data from BrightScope in an Moncler Outlet article published last year, had investors pulling a net $11.4 billion from tax deferred savings plans back in 2013. Morgan.

Other analysts have pegged moncler outlet sale 2016 as the outflow inflection point.

cheap moncler sale In addition to $6.5 trillion in defined contribution plans, individual retirement accounts held another $7.3 trillion at the end of the third quarter, ICI data show. Some funds leaving the 401(k) market are moving to the IRA market. cheap moncler sale

Over the next 20 years, as much as $21 trillion in retirement plan assets will be “on the move,” leaving retirement plans and migrating into investable assets, Roame estimated.

moncler sale outlet That massive transition should be present new opportunities for advisors looking to jump ship out of retirement plans and into managing investable moncler jackets outlet assets. moncler sale outlet

moncler outlet online The key is for advisors to stick with moncler factory outlet baby boomers for a bit longer, even if boomers gradually lose their dominant position as the generational locomotive behind defined contribution retirement plan in flows, Roame said. moncler outlet online

monlcer down jackets Baby boomers are the ones who dominate the money flow in cheap moncler America today. monlcer down jackets

cheap moncler outlet “They dominate the credit, the dominate the insurance, they dominate the investable assets, they dominate the bank accounts,” Roame said cheap moncler coats cheap moncler outlet.

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