Marketing IRAs year round can be a good product for your practice. There are a number of reasons that IRAs have much greater relevance now than in the past, including the general aging of the population, the growing rate of defined-contribution plans, and the increasing number and size of 401(k) payouts.
Yet, oftentimes, instead of focusing on investor needs, financial planners and brokers find themselves viewing the IRA market as limited to two sales products: traditional or Roth IRAs and rollover IRAs. By marketing IRAs as a means to add new accounts, you can build relationships that will be beneficial in the future. Rollover IRAs from employer plans, on the other hand, can be profitable immediately through increasing assets. However, this perspective overlooks how the market is changing and obstructs the real needs of the investors for information and guidance.
By focusing on the investor, you will find that there tends to be a common pattern where assets are accumulated and then a life event or a tax law change forces the investor to make some choices. At first the choices appear to be fairly simple and straightforward, but after a closer inspection, the investors may find the options and details to be confusing or may not understand the situation clearly enough to make an effective decision. An informed investor can avoid any penalties and minimize taxes, while an uninformed investor may make costly mistakes.
As you can see, the door of opportunity is wide open to marketing IRAs. Consumer interest in retirement is very high right now as more people are becoming aware that they cannot depend solely on Social Security to take care of them. People are more open to receive advice and are looking for new ways to add to their own nest egg or to help their children get started in the right direction. As a financial professional, you are in a perfect position to reach out to help people make sound decisions for their retirement. In the process, it will help you gain exposure and, hopefully, new business.
One way to market IRAs is through a client newsletter.