Personal Financial Planning Platform & Wellness Adoption

[0:00] JD: Foreign. Hey, welcome everybody to another episode of Retireholics. This is going to be a good one because most of us are hungover, including our producer. [0:17] Speaker B: We can tell by the energy level. [0:19] JD: We are live Here at the One Digital Evolve 2023 conference in Kansas City. [0:27] Mark: Yeah, Kansas City, Missouri. [0:29] JD: Kansas. [0:29] Laura Rogers: Missouri. [0:30] Justin: Right. [0:30] Laura Rogers: Correct. [0:31] Mark: We're theoretically in Missouri right now. [0:32] Laura Rogers: We're moments away from Kansas. [0:35] Speaker B: It's not theoretically if we. [0:37] Mark: It's true. You're right, Mark. Sorry. [0:38] JD: After last night's shenanigans, this may be our last Evolve conference. [0:43] Mark: I think we're going to evolve. [0:44] JD: Without us. [0:45] Mark: We go to see. [0:45] JD: We'll see. We are going to go in a little different format here, so we get right to it. And Justin, you're going to intro the guest. [0:55] Justin: All right, Laura, I've switched it up a little bit here, so try to keep up and see what's going on. [0:59] Laura Rogers: I'll do my best. [1:00] Justin: She's known for her meticulous nature, culinary skills, amazing sense of fashion and extreme competitiveness. She has a tight knit group of five friends, one of which her brother had a kid with and another who's a musician famous for her song about a smelly cat. Whenever hurdles get thrown at her, she's a master pivoter. Rises to the occasion even if it's being forced by Carrie Elm to drink a beer with four idiots on a camera. She's a director of Financial Elements One Digital. This is Laura Rogers. [1:30] JD: Yes. [1:31] Laura Rogers: Nailed it. [1:32] JD: I have a guess. [1:34] Justin: She gets a guess first. [1:35] JD: Do you know who that was he was introing? [1:38] Laura Rogers: Not me. [1:39] Mark: No, that is correct. [1:41] JD: Way to go, Laura. We can all say it at once, right? I know what it is. [1:44] Mark: Yeah, I know who it is. [1:45] JD: It's Phoebe. [1:46] Mark: It's Phoebe. [1:46] JD: Phoebe. [1:47] Justin: No. [1:47] Laura Rogers: Smelly cat. [1:48] Mark: You guys are all wrong. Oh, she has this friend that sings Smelly Cat. Phoebe sings Smelly Cat. Okay. Oh, then it's really Rachel. [1:55] Justin: No, Monica. [1:57] Mark: Monica. We did suck. [2:01] Laura Rogers: Sorry, Justin, I don't number my kitchen mugs. [2:04] Mark: Sure. [2:06] JD: Okay, we're gonna go straight to first headline and we'll play a little game and then we'll do a topic Headline is human interest? The 401k disruptor. Late last week came out with news that they're offering a cash back deal in their 401k program. They're giving 3% cash back to your [2:29] Speaker B: Capital One savings account. [2:30] JD: There's some details here. I believe it's participants who make $60,000 a year. Or less. [2:36] Mark: Or less. [2:36] JD: And will contribute 8%. It's a decent chunk for someone Making [2:42] Justin: that So starting points 8%. [2:44] JD: You got it. [2:44] Mark: You're got to save at least eight. [2:46] JD: You're bar to get over is 8%. So at least 8% at. And they're going to give you 3% cash back. But that caps out at 250 bucks. [2:54] Mark: Yep. [2:55] JD: And I think based on what I read it's not like going into your 401k plan. They're literally going to go okay, good job Laura. You saved in the 401k plan. Here's 250 bucks to go spend it. You know, wherever you spend it's like Costco. [3:08] Speaker B: That's their executive or their, their premier membership does that. [3:12] JD: So it's an incentive. It's try. They're trying to incentivize lower paid people to participate in the plan. I haven't seen anyone do it. I want, I don't want to be a hater right out of the gates. I don't want to be a hater out of the gate right out of the gates. But what do you think about this, Laura? [3:29] Laura Rogers: First stab, like interesting idea. I'm curious to see how it plays out. And then of course my brain goes to things like is that taxable? Is it. You know how is. So you're netting a hundred bucks? I don't know. [3:44] JD: Well, I guess is an gift card [3:46] Mark: that expires in 12 months. [3:47] JD: I think it would be like a gift card. [3:49] Mark: Gift card. [3:50] Justin: Those worst gift cards contribution going into the, into their plan. [3:54] Laura Rogers: Like a. [3:55] Mark: No, they can't do that. Right. They're not. [3:58] JD: And I would see the taxable thing is just like when you get rewards from an airline or something or I mean these types of things happen. [4:06] Mark: There's probably a, maybe a $250 threshold because if it's a gift, you don't have to consider it taxable. I don't know. [4:15] JD: There's a catch, right? [4:16] Mark: There are catches. And I always wonder too, like from a business side of things, actuary sat down and they figured out what their cap was, how much this is going to potentially cost us. You have to be in the plan and contributing north of 8% for 12 full months before you get it. Yes. If making under 60k and you're employed with that employer that happens to be using this provider human interest for 12 months and you stay employed and you continue to attribute 8% then you're gonna get 3% cash back when you apply for it. So how many folks are going to apply for it? [4:50] Laura Rogers: How many folks. [4:50] Mark: Look at the people making under 60k are going to turn over quite often. So I think they're smart. [4:59] JD: No one's going to use it and they get to advertise with it. [5:02] Mark: I think it's a wonderful thing they've done. I don't think it's going to end up being as big or impactful. Now, how many clients will go, oh, shit, I'm going there because they're going to give my employees $250. [5:13] Laura Rogers: Right. [5:13] Mark: We'll see. [5:15] JD: That's cool. [5:15] Mark: We'll see. [5:16] Justin: As like a saver. The reality is there people, the people that actually can save all make over 60 for the most part. [5:23] JD: Right. [5:23] Justin: They're just not going to have a lot of people capturing this. And so it's not going to cost them anything, but they're going to bring in a ton of clients. [5:29] JD: I didn't even think what Chad said, because it is true. [5:31] Speaker B: You do have to fill out a [5:31] JD: form after 12 months. [5:32] Justin: Yeah. [5:33] JD: Everyone's gonna forget about it. You're not going to fill it. [5:35] Mark: And what about as a fiduciary? If you're an advisor or the client, the plan sponsor, and you implement automatic enrollment. What if you implemented automatic enrollment at like 6% instead of 8 and not getting people to the threshold that will then get them this 250? I would say that would be frowned upon. [5:51] JD: Heavily spoken like a true by attorney. There was one other catch. They have a wellness solution, which I was not aware of, by the way. So human interest has a wellness solution that's called Kickstart. We named a program Kickstarter. Their parentheses is on. Theirs is on the second K. Whatever. I'm not going to sue them. But so they got this wellness and apparently if you want this 3% cash back, you're automatically enrolled in their wellness platform. So I put on my tinfoil hat and I wonder, is this another way to try to sell something else, like a sleight of hand? But I'm being a meanie. Like, that's probably not. [6:33] Mark: B is not looking at me. [6:34] JD: He's making money. [6:35] Mark: Maybe being awkward. Where you make your money. That's where you make your money right there. [6:39] JD: So whatever. [6:41] Mark: Just more money going into the plan. They do have a small asset charge [6:44] JD: or trying new things. Do you remember the evo share? [6:47] Laura Rogers: Yeah. [6:48] JD: That's gone kaput, right? [6:50] Laura Rogers: Yep. So, you know, I think anything that helps people incense them to get them in and saving is probably a good thing. I think it's early, it's disruptive. We're talking about it, so good for them. Yeah, we'll see what Happens. [7:03] JD: We'll see. So anyways, less. I don't. I. I am fearful of spinning the wheel of ice right now. [7:10] Mark: But you've been crushed lately. [7:12] JD: We're going to spin it and someone's going to drink a Smirnoff ice. Red, white and berry. [7:17] Mark: I was going to say red, white and berry too. [7:25] Speaker B: I might be more nervous about this [7:26] JD: than I've ever been of anything in my world. [7:28] Mark: Mark might throw up. He drinks this. [7:31] JD: God. [7:35] Speaker B: At least it's on a mallard. [7:36] Mark: I think someone hacked into the system. [7:39] JD: I'm like batting.800 right now. [7:42] Mark: It's been like two this year that you haven't got. [7:44] Speaker B: I give Brandon a 3% Mac cap of 250. Incentive. [7:50] Laura Rogers: I'll give you 250. [7:51] JD: Right. All right, let me get you started. [7:53] Justin: First episode or just for the year? [7:55] Speaker B: I don't know. [7:55] Laura Rogers: Sends me an invoice after 12 months. [7:57] JD: Let me get you started before I dive into this beautiful blue liquid. Vince Morris up on the stage for the opener yesterday to kind of kick off this whole conference, started putting up these explainer, you know, those little explainer hand drawn things which by the way, I think are really cool. They're kind of nice on the brain like you get in there. But what I thought I saw was him explaining these like new like referral relationships that were happening. Can you tell us more about that? Because she's kicking it off this whole conference. He's starting with that. It's got to be a big deal. [8:32] Speaker B: Can I just say real fast, I think there's a pretty specific acronym that goes along with all of this. So just be careful. [8:39] Mark: Tee her up. [8:40] Speaker B: No, I want her to stay happy and comfortable. [8:46] Laura Rogers: It's relative. Happy and comfortable, by the way. Yeah, so you mentioned Financial Elements in my intro, which actually is dead and gone. [8:55] Mark: Sunsetted. [9:00] Laura Rogers: Sounds very. [9:01] JD: It was kind of fun to read Vince's speech before he was saying it too. [9:05] Laura Rogers: That's okay. I was doing that too, by the way. So Financial Elements was a one dimensional financial wellness questionnaire. People get a score. Okay, great. What we've evolved to with personal financial planning, that has an acronym I won't use. Good job, by the way. [9:24] JD: Wow, that was impressive. [9:24] Laura Rogers: That was impressive. [9:28] JD: Okay, go on. [9:29] Laura Rogers: Is a much more three dimensional, four dimensional experience for employees in retirement plans. Meaning they have a platform they can go to for online tools and resources. They have point in time advice by a team of CFP candidates. CFP charter holders, certified financial planners. [9:48] JD: Yeah, finish your thought. Year two, keep going. [9:51] Laura Rogers: And then they can go directly To a wealth advisor for more, if they have more complexity or beyond, sort of [9:58] JD: mainstream needs, a more robust version of [10:01] Mark: what you have that counts for both [10:05] JD: with elements and elements was built on a Questis chassis. Is that right? And that they're no longer part of this? [10:14] Laura Rogers: That's correct. [10:16] JD: I'll be right with you. [10:17] Laura Rogers: Okay. Oh, sorry. [10:19] Mark: Malort. That's the Malort. [10:21] Laura Rogers: Malort will get you the gift that keeps giving. [10:24] JD: So completely off the quest, this chassis. So this is a whole new thing, like for real. You didn't just modify what you had. [10:31] Laura Rogers: So part of what we did at OneDigital is we hired a head of product. He came in last year, Vinay Gidwani and him and his team really built this one digital platform for employees to come in. Before our website was very much sort of employer focused. So now we have an employee site they can all come in through, get the tools and resources online, self sourcing or engage with one of the advisors who is a certified financial planner candidate or a charter holder. [11:03] JD: So I'm always thinking, I'm kind of thinking about all the advisors that are under your umbrella and the value and the services that they get. It sounds like this new program is built to be more inclusive of them. Where before they're kind of just going off to what did we call them at financial? Their mentor. Yes, they go to their mentor. It's just kind of a one on one thing. Is it true now that in this new platform you're really involving these advisors across the country? [11:32] Laura Rogers: That's correct. Okay, so we've regionalized. I'm still dealing with that. We've regionalized the formerly known as mentors. So they have regions which creates alignment with each of those field offices on the retirement advisor side, on the wealth advisor side. So now there's a team at each office with the dedicated advisor at home [11:53] JD: office feels more like an extension of their 100%. When did this come out? How long ago? [12:00] Laura Rogers: Let's see, it's probably been three, four months. Normally pretty new. Yes, very new. [12:06] JD: And don't give me like the corporate yay pitch, but what's, what's the response been and is it. It's in action right now with a lot of your, your advisor. So how's it going? [12:15] Laura Rogers: In action right now. So we are ramping up. So the first sort of portal entry point we've got anywhere from 700 to 1,000 people attending webinars every month. So that's sort of step one. Again we're about 90 days in on that whole Outreach and invitation process. So that's pretty good. It will continue to grow from there. We've got about 30,000 employees that we've put on the personal financial planning experience. Okay. And we are. Let's see, we've captured probably about a couple dozen referrals off to the wealth side, totaling over $25 million. [12:54] Mark: Capture There is otherwise could have gone somewhere else, but now they're in the phone, the door. [13:00] Laura Rogers: That's correct. [13:00] JD: Correct. Yeah, but there's. So there's a data thing happening in a good way. Yes, there's a data thing happening where you're surveying all this stuff and finding opportunities. Because I'm imagining these wealth management solutions where, I mean, people have higher net income and, or net worth and we're able to find. [13:17] Laura Rogers: It's a function of complexity and asset size, frankly. [13:20] JD: Right. [13:20] Laura Rogers: Or if they want to meet with somebody local across the desk, we're going to facilitate that happening. [13:27] JD: And this whole platform, this whole solution, this is not a cost to the employer or the participant. [13:35] Laura Rogers: Minimal cost for the personal financial planning. Very minimal. Minimal, yes. [13:42] Mark: The plan of the participant is getting comes at a cost to the participant. [13:46] Laura Rogers: If the individual elects to hire a wealth advisor and have an ongoing relationship, there's a cost to the individual, just like you'd expect. But for the employer to add this availability for everybody, there is a minimal sort of onboarding fee. [14:00] JD: Okay. [14:02] Mark: And you've said minimal a number of times. It's not headway for a small account balance because that's who you're trying to target. [14:09] Justin: Right. [14:10] Mark: It's trying to be a resource for the folks that otherwise don't have a relationship with an insurance. [14:14] Laura Rogers: We are educating and providing education. Right. But to the extent somebody has a need along the spectrum, then we handhold and walk them across that experience over to the wealth advisor if they want to go there. So the fee is flexible and four digits. [14:33] Mark: But the, the fee is not just from the wealth advisor. It's part of the personal financial planning platform. [14:39] Laura Rogers: Employer pays a fee to have the service available for everybody. [14:42] Mark: Okay. [14:43] Laura Rogers: Individual who wants to go to wealth, [14:45] Mark: wants more, has their own. [14:48] JD: Can I say it out loud and for everyone, fees are not bad. You're supposed to have their fees. We're in business. That's what we're doing. Like we're not hitting you hard on the fees. [14:57] Mark: But I think what I, what I heard from Vince, what I'm hearing from you, is that this solution should help the person who otherwise doesn't already have a wealth planner. So that's the Ideal. [15:09] Laura Rogers: There's two scenarios. Yes, most people don't, but also we offer a second opinion service. Let us just run a second opinion for you. If you're working with somebody, they're working [15:19] JD: with someone, but they can have. [15:20] Laura Rogers: Yeah, second opinion. [15:21] JD: Well, I tell you, we have talked about wellness on this show many, many times. [15:27] Laura Rogers: I was there for one of them. [15:28] JD: I've kind of gotten, I've kind of come over to your side of things. I've kind of felt like it's never got any traction anywhere. We talked about it a lot. It was going to change the industry. It was going to be this big deal. And now in the real world of 401k, I just don't see it happening. At least not in our space of the micro market space. Maybe it's happening for big Fortune 500 companies and stuff. So it's. I'm not trying to kiss your ass, but it's nice to see someone like one digital implement something like this and then push it and have the 30,000 and it'll grow and get bigger. So that gives me some hope, I guess is what I'm saying, that we [16:06] Laura Rogers: are here to give you hope. [16:08] JD: This kind of shit can work. I like the concept. [16:11] Speaker B: That's going to be their tagline for the next. [16:15] JD: You said webinars earlier is webinars. The entry point is, is that how you advertise this stuff to participants is by inviting them. The webinar, all you got. [16:24] Speaker B: That's it. [16:26] Laura Rogers: Webinars are sort of the table stakes just to have the conversation with employees. Yes, scalable. That's scalable. It's. It's easy. We pump people through that system to get invitations. [16:37] Mark: What do you do? [16:37] JD: You send them an email saying you should join this, click this link, but they don't have the information. So I'm guessing at the webinars they learn some stuff, but then they also learn about the program a little bit. [16:48] Laura Rogers: Not today. So the webinars are really standalone education available to any of our employers. So that's sort of step one. If you want to level up that experience as the employee employer. You can add personal financial planning. That's where you really get the dedicated advisor, the outreach to you personally from your advisor. That kind of. [17:09] JD: Okay, I'm an employer. I sign up for the. What's it called again? [17:13] Laura Rogers: Personal financial planning. [17:14] JD: Personal financial planning and say, yes, I want this. I've got 100 employees. What, what does it look like? How do we, how do we get the message to them and get them aware of that this is available to them. [17:26] Laura Rogers: So there's a series of email outreach campaigns that kicks it off. We do employer launch meetings, kind of a train the trainer type session. And then we do employee launch meetings. And this is where we're really engaging our field educators across the country. We have the MJ's of the world that are great at employee education. That's actually his name, but nice try. [17:50] Justin: Oh, never mind. No, we're okay. [17:52] Laura Rogers: We're good. [17:53] JD: Yeah, good old fashioned 401k education meeting. You're putting people in front of a room and teaching them through a PowerPoint deck or whatever that about this program, correct? [18:04] Laura Rogers: Or digitally or whatever. Yes. Yeah. [18:07] JD: On Zoom these days, same kind of. [18:08] Mark: I just look at that and go that, that side of it has been there, it's succeeded, it's failed in some ways. Like nothing's new there. What I heard and what I think I'm most excited about for the folks that are here and in these rooms is that now if you're a participant, your plan sponsor's elected to offer this, you have a solution to actually get some wellness support. You have certified financial planners that you can speak to. And then if you are ready to engage with an actual advisor and go to the next step, you have someone through what the employer is offering you. I've said it for years. It is in my opinion that all employees, employee services, all financial services are going to come through the employer in the future. I want insurance, I'm going to go to my employer. I want car insurance, I'm going to go to my employer. Well, what's advice? [18:55] Laura Rogers: The American worker says like 60% of people look to their employers to help them with all things financially. [19:01] JD: If the employer would be proactive and aggressive in that kind of role, then I think you really, it's a recipe for success. Like you need the employer to be [19:10] Laura Rogers: like they have to. This is it. [19:12] JD: This is what we're doing. This is why we're doing it. We want you all to participate in it. We're putting time and energy and money into it. Like get on board. I am in the middle of a request for a proposal for one of our larger clients right now working in partnership with the advisor. And the advisor wants me to come back to him with some new record keeper options. Justin's going to help me when we get back home. [19:34] Laura Rogers: Okay. [19:35] JD: The number one. The number one. [19:38] Laura Rogers: Did you say request for proposal? [19:42] JD: The number one, the number one need or want of this large client is what I would call wellness or support. So when I ask them okay, we're going to go out to the market, we're going to find you some new solutions. Because they're a little upset with their current record keeper. I said, what are you really looking for? This trumped everything else. They want help for their participants and financial planning and budgeting and saving and all these things that are not even 401k stuff. And so. [20:12] Mark: And that's because to your point, you used it in a different term earlier. But jd, all the things we sold on for years are now table stakes. Institutionalized investments, table stakes. You know, billable access to billable fees, table stakes. Like everybody has all of these things now. Robust websites, tech, mobile apps, functional transactional mobile. They all have it. So what's the next wave? What's new? And it's going to be, it is, it has been for a little while now, but it's going to be actually implementing and making it work. Wellness solutions. [20:41] JD: Because I don't even think it's a shiny mouse trap. Like I'd love to label it that, but I get it when that plan sponsor says to me this is what I want, like it makes perfect sense to me. Like of course that's what you want. Like employees want it. Good question. [20:58] Mark: Do they need it? The difference between need and human resources [21:02] Speaker B: and the finance people, the chief executive officers want the feel good look what we do. And then they, and then it falls on deaf ears. There's no one proactive there pushing again previously the campaigns and all that like that is where it just falls by the way. [21:18] JD: Of course, number one there, we'll put [21:22] Speaker B: costs down here somewhere. [21:23] JD: But that's more important. Okay, I mean what do you say to that? Like are we just inevitably gonna fail in this? The no. [21:32] Speaker B: But this wasn't pinpointed at this specific. I say in the general landscape of [21:37] Mark: this and we've seen that for five [21:38] Speaker B: years when the, the client is asking for it. It's not that they surveyed their employees and 95 of them said this is what we want. [21:46] Mark: No, they didn't. I guarantee it. [21:48] Laura Rogers: So here's where we think we, we're unique in this offering. We have an HRC practice that connect human resource consulting business that can actually survey the people. We have health savings account benefits on the other side on the benefit side of the house. So we can wrap all of that into a conversation with those employees. And that's where we really think have a unique position and can really add some value for that. [22:22] JD: And can I also counter you in an optimistic way? I've said this before. But. But the employer can also make a difference. Like the employer can say, look, this is how we run this company here. We care about you. I've said this before. Like when you become an employee at abc. [22:42] Laura Rogers: Okay, [22:45] JD: I heard too generic company name. [22:48] Laura Rogers: We want to. [22:49] JD: We want to bring you on. [22:51] Laura Rogers: Insert name here. [22:52] JD: We want to bring you on, get you in our 401k plan, get you into our group health stuff. So you've got good health insurance stuff. And we are going to force you into like a financial wellness type of solution. This is how much we care about our employees. So regardless of whether you want to as a participant or not, going to put you in there, put you through the program because we want our employees to be happy and healthy and low anxiety when it comes to their finances. And I think if you share that, [23:22] Mark: offer this to us. [23:23] JD: Yeah, sure. [23:26] Justin: Always comes back to that. [23:28] JD: We actually have one advisor. So anyways. Okay. [23:32] Laura Rogers: Who are they? Let's get them. [23:34] JD: Sne White. Yeah. [23:36] Laura Rogers: Great. You're in great hands. [23:37] JD: Yeah. Okay. Laura, thank you. Quick little show. You got speaking gig later today. [23:44] Laura Rogers: Tiny little presentation of a thing. [23:46] JD: One more shot of Mallorp will warm you up for that. And we appreciate it. It's great to see you again. [23:52] Laura Rogers: Nice to see you. [23:53] JD: Thanks to One Digital for having us back here again. Might be our last. [23:56] Laura Rogers: For your last ever evolution. [23:59] JD: And yeah, thanks for tuning in. [24:01] Laura Rogers: We're the evolving clicks. [24:03] JD: We know what we do. [24:04] Laura Rogers: The evolution stops here. [24:05] Mark: Yeah. Right. [24:06] JD: We're changing the retirement plan industry one lukewarm Coors Light at a time. [24:12] Laura Rogers: Thank you. Thanks, guys.