Some retirement advisors are unaware of the benefits of serving federal employees, while others choose not to work in the federal market. By doing so, they are leaving tremendous opportunities untapped. In this article, I explore five myths that too often discourage advisors from working with federal employees. Thank you to ProFeds “Top 10 Reasons to Niche Your Practice to Work with Feds” article for helping provide some of the data used below.
Myth #1: “Other advisors already specialize in handling federal employees.”
Federal employees are actually underserved. Complicated benefits often leave employees frustrated and confused, yet only 25% have ever worked with an advisor. Couple this with the fact that 14% of federal employees are eligible to retire now, and the opportunity is sizable.
Myth #2: “Working with federal employees is too complicated and not worth my time or energy.”
Federal retirement plans can be difficult, but the right tools can help you navigate the system and gain your clients’ trust. The Retirement Analysis Kit has the Federal Employees Retirement System (FERS), the Civil Service Retirement System (CERS), and a host of other government pension plans built in. This allows you to easily generate helpful reports that educate and equip your clients for a successful retirement.
Myth #3: “Niching my practice will make me lose out on other opportunities.”
The fear of missing out will quickly be eased as your sharpened expertise drives new referrals and you no longer feel the pressure to be all things to all people. Federal clients will recognize and appreciate the confidence that comes from honing your focus, and your client base will grow quickly.
Myth #4: “I need to live in Washington, DC, or in a large city.”
There’s no need to live in the nation’s capital, because 85% of federal employees work outside of the Washington, DC, area. Many smaller markets are underserved and need qualified and competent financial advisors.
Myth #5: “The government is too hard to work with.”
This may be true, but think about the people who are involved. Many federal employees have conservative leanings and will actively engage in doing what is needed to protect their retirement income. They need a qualified advisor to guide them through the process.
RetireReady Solutions is a great resource for any advisor heading into the federal employee market. Hopefully this short article has helped you reconsider the opportunity to serve federal employees. Advisors serving other markets are encouraged to think about common misconceptions in their own market and use them to focus the services they provide.
Upon downloading your free trial, federal plans are found in the Gap Analysis calculator
(call 503.831.1111 for a free web demo).