One plus one is two, right? Not so, says Phil Kim, Founding Member and Managing Director of Signature Wealth Concepts, making the case for collaboration in the 403(b) marketplace.
“One plus one is greater than two,” said Kim in the June 21 NTSA Webcast, “The Case for Collaboration in the 403b Marketplace,” arguing that collaboration puts all parties to it in a stronger position. Robert Young, President, One2One Wealth Strategies, LLC, struck a similar note, remarking, “If I have an idea and you have an idea, we both have an idea. If we share our ideas, we both have two ideas.” Adam Pearce, Certified Financial Planner, Lincoln Investment, joined them in the discussion.
The three discussed the merits of working together in a competitive marketplace, and how collaboration led to significant advances in their own individual businesses over a short period.
They all have practices in the Phoenix, AZ area and the climate had been toxic before they decided to collaborate, said Kim, and that decision “raised eyebrows, even from co-workers.” But the result, he said, is that “Our careers have progressed in ways we could not have imagined.”
Results
Kim, Pearce, and Young found that meeting potential clients together has proved to be very effective.
“There is nothing more powerful” than having one or two other managers of a competing firm along when meeting with a potential client,” said Pearce. “That sale was made as soon as we sat down,” Kim added.
“We’re comfortable setting the rules for playing in our sandbox,” said Kim, adding that they will walk away from a school system that won’t follow those rules.
Collaboration, Young said, has many advantages; among them:
- it gets rid of bad actors;
- it better accomplishes employers increasing their efforts to educate employees; and
- it dramatically increases participation in retirement plans.
The overall result, said Young, has been an increase in profitability for all of them.
The Bottom Line
“We support each other,” said Kim. He continued, “we understand the market is fragile,” and that if one party damages it, that affects everyone.
Available on Demand
The June 21 NTSA Webcast “The Case for Collaboration in the 403b Marketplace” is available on demand. Click here:
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