Compensation Analysis

Client Data Input

AUM Report

Typical industry averages for advisors compensation on Defined Contribution AUM for 401(k) and Profit-Sharing plans can range between 25 and 60 bps. Contrast, cash balance plans and their assets require active management as advisors seek a rate of return or Interest Credit Rate (ICR) that may range between 2-6%. Due to these additional challenges and the skill level required, Advisors may choose to charge larger management fees of between 75 and 225 bps. Your AUM report conveniently shows a snapshot of your potential future earnings.

Insurance / Annuity Report

Alternative asset such as insurance and annuities may be held inside of retirement and cash balance plans. These investments can be a powerful aid to create a complete retirement planning solution for your clients. Typically, tax deductible life insurance purchased inside cash balance plans has a maximum investment of 50% of the cash balance contribution – which is illustrated below. The other 50% could go into an annuity or into the stock market. Below you may edit your compensation as needed.