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APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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How 401(k) Participants Find Their Financial Advisor

Most defined contribution plan participants find advisors through referrals or websites.

| BY Kent McDill

Friends and family provide all sorts of support, and they are key to finding an advisor for defined contribution plan participants.

In the new Spectrem’s Millionaire Corner study Advisor Usage Among DC Plan Participants, 36 percent of 401(k) participants found their financial advisor through a referral from a friend or family member. No other specific method for finding an advisor garnered more than 9 percent of the responses, although “other’’ was selected by 26 percent of participants.

Nine percent of participants found their advisor through a website that provides detailed information on advisors, and 7 percent found their advisor at a seminar or special event. Other ways advisors were found was through a general advertisement (6 percent), investigating a certain product and finding an advisor that specialized in that product (6 percent) or the advisor made first contact (6 percent).

Overall, only 33 percent of 401(k) plan participants use a financial advisor for any investment decisions.

There were some significant differences in how certain segments of plan participants found their advisor. For instance, 44 percent of female participants used a referral from friends and family to just 27 percent of males. The male population was more likely to find their advisor through a website (13 percent male to 5 percent female).

Among plan participants with a balance of over $100,000, 43 percent found their advisor through a friend or family referral. But 43 percent of those with a balance below $10,000 had some other unspecified way to find their advisor. Twenty percent of participants with a balance between $10,000 and $49,000 found their advisor on a website that provides information on advisors.

Ninety-four percent of plan participants considered honesty and trustworthiness to be a key characteristic of the advisor they chose. Eighty-nine percent selected the investment track record of the advisor as a significant component, and 89 percent said transparency and a willingness to keep the participant informed of what they are doing were factors in choosing an advisor.

About the Author

Kent McDill


Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.