seize the retirement income opportunity february 24, 2015 presenters: jerry patterson, senior vice...

SEIZE THE RETIREMENT INCOME OPPORTUNITY

February 24, 2015PRESENTERS:

Jerry Patterson, Senior Vice President, Retirement & Investor Services

Jim Carbone, National Vice President, Principal Advisor Network

Dave Littell, JD, ChFC®, CFP® The American College, Codirector of the New York Life Center for Retirement Income

Do not copy, forward or duplicate without express permission.

RETIREMENT INCOME

Jerry PattersonSVP Retirement and Investor Services

Principal Financial Group@pattege55

NOW!


10,000


“No big deal. I am confident.”


ADMIRING A BALANCE INVINCIBILITY PLENTY OF PLAN Bs


RETRAIN OUR BRAINS


Long termBuy and holdA little adds up to a lot down the road

Asset AllocateDiversifyTarget dateGlide pathTransition


THEBig ZigFrom a life of…

EARN SPEND SAVE

To a life of… SPEND


Dinking around for decades.

Time for a surge...


RETIREMENT INCOME

SURGE!


TOOLS AND RESOURCESApproaching Clients

• Client workshops

• Retirement Income Review kit

• Retiree videos

• Direct mail (emails, postcards)

• Social media

• Social Security/ Medicare materials

Planning Tools

• Principal Income Protector

• Social Security Calculator

• Financial Strategies/Financial Strategies Pro

• MoneyGuide Pro/ eMoney 360 Pro

Product Solutions

• Mutual funds & Fee-based solutions

• Annuities

• Qualified Longevity Annuity Contract (QLAC)

• Life insurance

Coming

• Retirement income advisor website

• Advisor videos

• Thought capital

• Webinar series

• Retirement Income Academy

Retirement Income Certified Professional® (RICP®)

Practical. Current. Comprehensive.

Copyright © 2014, The American College. All rights reserved. Used with permission.

The Retirement Environment

• Retirement is Booming: 7,000 Americansreaching retirement age every day for thenext 17 years

• A recent study of defined contribution plan participants highlights the potential market among pre-retirees.

• 50% of plan participants in the critical age group of 50-64 currently do not have an advisor.

• Over 40% of plan participants will be seeking advice in the future.

*Spectrum Group


So Many Issues to Face

• When to retire• Claiming Social Security• Company plan distributions • Choosing income strategy• Investing the portfolio• Choosing withdrawal rates• Choosing annuity products• Role of life insurance• Health care planning• Long-term care planning

• Where to live• Using housing wealth• Contingencies

• Life expectancy• Inflation• Market risk• Law changes• Bad timing• Unexpected expenses• Frailty


Impact of Good Advice (Decisions)

Strategies Increase in income*Social Security Claiming 9.0% Dynamic Withdrawal Strategy 8.5% Tax Efficiency 8.2% Total Wealth Asset Allocation 6.1% Annuity Allocation 3.8% Liability Relative Optimization 2.2% Total 38%

*Blanchett, video discussing article “Alpha, Beta and now Gamma”


Leadership

Dave Littell, JD, ChFC®, CFP®

Director, Joseph E. Boettner Chair in Research, Professor of Taxation

Jamie Hopkins, Esq, JD, MBA

Associate Director, Associate Professor of Taxation

Mission• Elevate the retirement income planning knowledge of financial services

professionals in order to improve retirement security for all Americans

Current Priorities & Initiatives• Video Library retirement.theamericancollege.edu• Retirement Income Certified Professional® (RICP®)• Thought Leadership and Visibility• RICP® Retirement Income Literacy Index


www.theamericancollege.edu/retirement

Researchers• Ameriks• Babbel• Basu• Blanchett• Finke• Milevsky• Pfau• Reichenstein• Sass• Vanderhei• Warshawsky

Educators• Franklin• Hegna• Jordon• Rappaport• Timmerman

Practitioner/Experts

• Baldwin• Caudill• Cloke• Kitces• Guyton• Newman• Schiff• Rosen

Tools• Freitag• Hegna• Malhotra• Meyer• Pechter• Huxley

http://www.theamericancollege.edu/retirement


Retirement Income Certified Professional® (RICP®)

• Innovative online video delivery: The RICP® is built around the latest ideas and delivered though video interviews and lectures, all supported by a detailed outline.

• Team of experts: Developed by College faculty and supplemented by 38 outside contributors

• Ideas that are practical, relevant, and current: Practitioners are reporting that they are using what they learn right away with their clients.

• Three in-depth courses: The material is presented at the right level of detail, covering the full retirement planning process and the best solutions to offer.


Course #1: HS 353The Retirement Income Process

1. Evaluate the client’s current situation

2. Identify and prioritize retirement goals

3. Estimate retirement income needs

4. Identify sources of income and assets available to generate retirement income

5. Make a preliminary calculation of the client’s preparedness for retirement

6. Develop strategies for addressing a shortfall

7. Consider legal and tax issues that can derail plan

8. Consider retirement risks in developing solutions

9. Determine an appropriate strategy for converting assets into income

10. Integrate all considerations, present alternatives, and agree upon a plan


Course #2: HS 354Sources of Retirement Income

• Recommend the optimal Social Security claiming age appropriate for each client's situation;

• Choosing the optimal retirement age;

• Choose appropriate uses of annuities;

• Evaluate sources of retirement income including executive benefits, life insurance, benefits for federal employees, and planning for business owners.

• Building a retirement portfolio


Course #3: HS 355Managing the Retirement Income Plan

• Choosing tax compliant distribution options from tax-advantaged plans;

• Recommend the best health insurance options ;

• Select a method of funding long-term care needs;

• Help a client with retirement housing decisions;

• Ethical issues in retirement income planning;

• Managing the decumulation portfolio and the retirement income plan


Success of RICP®

• Over 7,000 have enrolled• Approximately 1,500 have completed• Designation approved for use by 38

companies• Approval in all regulatory jurisdictions• Designees listed at

www.designationcheck.com

http://www.designationcheck.com/

Placements:• November 12th – By Laura Shin - A New Breed Of Financial Advisor

Takes Off • December 17th – By Laura Shin - 5 Times A Retirement Planner Could

Come In Handy (Dave Littell) • March 31st – By Laura Shin – The New Financial Task We All Need To

Tackle Asap (Jamie Hopkins)

Wade Pfau Bylines:• March 3rd - Lifecycle Finance: An Alternative For A Lifetime Financial

Plan• March 18th - Retirement Risks: It All Starts With Longevity

• April 1st - Investment Return From Delaying Social Security? Sure Beats TIPS

Select Jamie Hopkins Bylines: • February 3rd - Planning For An Uncertain Life Expectancy In Retirement• February 18th - Unique Retirement Planning Challenges Facing Hispanic

Americans• April 21st - New and Unexpected Ways to Fund Long-Term Care Expenses

• February7th – By Kathryn Buschman Vasel - 7 Tips For Women To Have A More Secure Retirement (Dave Littell)

• November 11th – By Amy Feldman - Thinking Long Term (Jamie Hopkins)

• November 5th – What is the RICP and why should retirees care? (Dave Littell)

• December 3rd – By John Waggoner - Long-Term Care Insurance: Peace of Mind At A Price (Jamie Hopkins)

• April 5th – By Jeff Reeves - Should you bother itemizing your tax returns? (Chris Woehrle)

• April 6th – By Jeff Reeves - New IRA rollover rules hit wealthiest savers (Jamie Hopkins)

• April 14th – By Jeff Reeves - Getting a big tax refund may not be a good thing (Chris Woehrle)

• January 30th – By Tara Siegel Bernard - Obama Orders Creation of 'MyRA' Savings Accounts (Jamie Hopkins)

• February 14th – By Abby Ellin - The Childless Plan for Their Fading Days (Dave Littell)

• April 11th – By Paul Sullivan - Tips to Manage Spending in Retirement (Dave Littell)

• January 12th – By Anne Tergesen - What You Know About Retirement Investing Is Wrong (Wade Pfau)

Selected Top Placements

Selected Top Placements

• April 9th – By Jennie Phipps - Create a digital estate plan (Jamie Hopkins)• April 14th – By Jennie Phipps - 8 ways to hedge a longevity bet (Dave Littell)

• April 30th – By Richard Eisenberg - Is Too Much of Your Retirement Money in Stocks? (Wade Pfau)

• November 8th – By Paul Katzeff - How To Grow Your Business: Tips For Financial Advisers (Dave Littell)

• April 6th – By Suzanne McGee - Why the best laid schemes for retirement often go awry (Jamie Hopkins)

• April 7th - By Lynnette Khalfani-Cox - 20 Things That Can Ruin Your Retirement – Part I (Dave Littell)

• April 8th - By Lynnette Khalfani-Cox - 20 Things That Can Ruin Your Retirement – Part II (Dave Littell)

• October 29th – By Anne Tergesen - What Retirement Experts Lack: Expertise (Dave Littell)

• January 1st – By Susie Poppick - How Much Should You Hold In Stocks? (Wade Pfau)• February 25th – By Donna Rosato and Penelope Wang - Building The New Retirement

(Wade Pfau)

• December 19th - By Janet Kidd Stewart - Some Final Tax Moves To Consider In 2013 (Dave Littell)


Retirement Income Literacy Survey

• Tested retirement income literacy 60-75 year olds• 20% passed with average score of 42%• Mentioned in:

– What's your retirement IQ? For most, it's lousy – USA Today– Are you smart enough to retire? – The Washington Post– Can You Pass This Retirement Planning Quiz? – AARP

http://www.usatoday.com/story/money/columnist/brooks/2014/12/03/retirement-financial-adviser-401k/19732597/

http://www.washingtonpost.com/news/get-there/wp/2014/12/03/are-you-smart-enough-to-retire/

http://www.aarp.org/work/retirement-planning/info-2015/retirement-planning-income-quiz.html

SEIZE THE RETIREMENT INCOME OPPORTUNITY

CALL TO ACTION:• Sign up for the first RICP course – if you have not already done so! • Schedule appointments with 3-5 clients with whom you need to discuss the

Big Zig.• Be engaged and act as an Ambassador for the initiative

NEXT MONTH: March 24 from 10:30 -11:15 CST• Learn about the NEW Social Security Calculator!

seize the retirement income opportunity february 24, 2015 presenters: jerry patterson, senior vice...

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retirement income surge

retirement income opportunity

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