A Dublin, Ohio, registered representative with Raymond Jaymes Financial will focus on local marketing to sell his advice service, InvestMy401k.com. Ken Morris, financial advisor, said the feeling that one is dealing with a local representative who understands the client is important to participants. Another plus is the perception of independence from a fund firm. Raymond Jaymes, he noted, does not have proprietary funds. Local marketing is the reason he wanted the business from Cardinal Health, in which he will offer advice to participants in the company’s plan for a fee paid at the plan level. Morris offers advice to individuals for a fee, but there are good reasons to be paid with a retainer from a plan. “As a broker, I always remember that it was tough to get appointments,” he said. Individuals had to gather information, usually putting together several statements, which took time. The broker usually had to get on the phone with them or visit. The arrangement InvestMy401k has with Cardinal health means he has the information at his fingertips and that saves a lot of time, allowing him to advise many more people. Morris said he plans to market via print and the Internet and seek local brokers to sell the service in other cities. “We’re going to do it the old-fashioned way,” he said.
Morris got the idea for a 401(k) advice service a year ago. “I got so sick of employees saying, after the enrollment meeting, ‘now what do we do?’” he said. He added that the provisions in the Pension Protection Act do not directly affect his business, but the fact that it encourages plans to seek advice could provide a boost.