If you’re guilty of making 1 or more of the mistakes above, now is the time to take corrective action. Just remember to avoid these mistakes as you continue forward in your career as a Financial Advisor.
Prioritize your time: Block out specific time for both reactive and proactive tasks.
Engage with all parties: Don’t give all your attention to one party. You may lose your client if they separate or the individual making all the decisions passes away.
Discretion is important with family clients: You may discover financial details that one party may not wish to disclose with his or her family. Be mindful when discussing such expenses.
Understand ERISA Coverage: If your client is the plan administrator for their company’s employee benefits, The U.S. Department of Labor requires they secure an ERISA Bond with a minimum bond amount of $1,000 or 10% of the plan funds handled the previous year, whichever amount is more.
A common compliance issue with ERISA Bonds is not having the necessary amount of coverage. All ERISA Bonds under the amount of $500,000 include Inflation Guard when purchased through Surety Solutions, A Gallagher Company. So, your client will not have to worry about an increase in premium when plan funds increase mid-term or about being out of compliance with the U.S. Department of Labor.