Leveraging Held-Away Asset Management for Growth in 2024

As wealth advisors explore new avenues for organic growth in 2024, an emerging yet still underutilized strategy lies in the management of clients' held-away assets, such as 401(k)s and other workplace retirement accounts. This approach not only presents a significant opportunity for advisors to expand their business organically, but also, with support from the right technology and partners, to do so quickly and easily. 

Why Focus on Held-Away Asset Management?

When it comes to organic growth strategies, held-away 401(k) asset management stands out for several reasons: 

Untapped AUM Potential

Many clients have significant investments in workplace retirement accounts that are often not actively managed as part of their broader financial strategy. Tapping into this area can unlock new revenue streams.

Deepening Client Relationships

Offering to manage held-away assets demonstrates a commitment to holistic financial planning, fostering stronger, trust-based relationships with your clients. 

Aligning with Evolving Client Needs

As clients seek comprehensive financial advice, addressing both managed and held-away assets positions you as a go-to advisor for all their financial needs.

The Convergence of Wealth and Retirement

The financial advisory landscape is currently experiencing a significant shift towards the convergence of wealth and retirement planning services. This trend is driven by the overarching business objectives identified in's 2023 WealthStack Study: advisors are focusing on adding more clients, deepening relationships with existing ones, and enhancing the overall client experience.

The move toward a more integrated approach to financial planning, incorporating both retirement and wealth management, aligns with these objectives and reflects a broader industry shift where advisors are adopting more holistic strategies to meet the evolving needs of their clients and improve productivity in their practices.

It's important for advisors to understand that this convergence is not unidirectional. Just as wealth firms are considering expansion into retirement planning, large recordkeepers are actively evolving to include wealth management into their own holistic service offerings. Just last year, Empower announced the creation of a personal wealth division.

As recordkeepers like Empower have expanded their offerings, they present significant new competition to traditional advisors and, more importantly, a compelling and holistic value proposition to advisor’s clients. Empower's move into managing held-away 401(k) accounts signals a clear intent to serve clients across all facets of their financial journey. This evolution is a wake-up call for wealth advisors, highlighting the need for a strategy that includes managing held-away assets.

The good news here is that advisors have the opportunity to be proactive. By offering held-away 401(k) management alongside traditional wealth management, advisors can both defend their client base and seize new growth opportunities in an increasingly integrated financial services market.

How Held-Away Asset Management Fits into the Broader Industry Trend 

The shift toward combining wealth and retirement planning is reshaping the advisor-client relationship. Advisors who proactively manage held-away assets are aligning with this broader industry movement, setting themselves apart as forward-thinking professionals. This strategic approach not only enhances your service offering but also aligns with the industry’s trajectory towards integrated financial solutions.

See for Yourself: The Held-Away Asset Calculator 

Discover for yourself the potential of managing held-away assets with our easy-to-use calculator. It’s an easy way for you to see the tangible benefits of expanding your services to include workplace retirement accounts.

Planning for Success in 2024

As you map out your strategy for 2024, consider the substantial benefits of including held-away asset management in your portfolio of services. This approach aligns with the industry's move toward more inclusive financial planning and taps into an area ripe for growth. Take advantage of our held-away asset calculator and see the opportunities that could be available to you in the coming year.

The calculators on this website are provided for informational purposes only. The results are estimates based on information you provide and may not reflect actual results. The results of the calculations are not a promise or guarantee of eligibility or terms for a specific product or service. Future Capital is not responsible for the content, results, or accuracy of the information on the calculators. ASSUMPTIONS: revenue opportunity calculation is product of total opportunity calculation (product of wealth clients, average balance, and adoption percentage fields), 60 basis point asset management fee, and 33% fee share.