SEIZE THE RETIREMENT INCOME
OPPORTUNITY
February 24, 2015
PRESENTERS:
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
RETIREMENT INCOME
NOW!
Jerry Patterson
SVP Retirement and Investor Services
Principal Financial Group
@pattege55
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10,000
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“No big deal. I am
confident.”
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ADMIRING A BALANCE
INVINCIBILITY
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PLENTY OF PLAN Bs
RETRAIN OUR BRAINS
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THE
Big Zig
From a life of…
EARN
To a life of…
SPEND
SPEND
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SAVE
Dinking around
for decades.
Time for a surge...
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RETIREMENT INCOME
SURGE!
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TOOLS AND RESOURCES
Approaching
Clients
Planning
Tools
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Client workshops
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Retirement
Income Review kit
Principal Income
Protector
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Social Security
Calculator
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Retiree videos
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Direct mail
(emails, postcards)
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Social media
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Social Security/
Medicare
materials
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Financial
Strategies/
Financial
Strategies Pro
Product
Solutions
Coming
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Mutual funds &
Fee-based
solutions
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Retirement
income advisor
website
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Annuities
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Advisor videos
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Qualified
Longevity Annuity
Contract (QLAC)
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Thought capital
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Webinar series
Life insurance
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Retirement
Income Academy
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MoneyGuide Pro/
eMoney 360 Pro
Do not copy, forward or duplicate without express permission.
Retirement Income Certified Professional® (RICP®)
Practical.
Current.
Comprehensive.
The Retirement Environment
• Retirement is Booming: 7,000 Americans
reaching retirement age every day for the
next 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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
So Many Issues to Face
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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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
• Where to live
• Using housing wealth
• Contingencies
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Life expectancy
Inflation
Market risk
Law changes
Bad timing
Unexpected expenses
Frailty
Impact of Good Advice (Decisions)
Strategies
Social Security Claiming
Dynamic Withdrawal Strategy
Tax Efficiency
Total Wealth Asset Allocation
Annuity Allocation
Liability Relative Optimization
Total
Increase in income*
9.0%
8.5%
8.2%
6.1%
3.8%
2.2%
38%
*Blanchett, video discussing article “Alpha, Beta and now Gamma”
Copyright © 2014, The American College.
All rights reserved. Used with permission.
Leadership
Dave Littell, JD, ChFC®, CFP®
Jamie Hopkins, Esq, JD, MBA
Director, Joseph E. Boettner
Chair in Research, Professor of
Taxation
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
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Video Library retirement.theamericancollege.edu
Retirement Income Certified Professional® (RICP®)
Thought Leadership and Visibility
RICP® Retirement Income Literacy Index
Copyright © 2014, The American College.
All rights reserved. Used with permission.
www.theamericancollege.edu/retirement
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Researchers
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Ameriks
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Babbel
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Basu
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Blanchett
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Finke
Milevsky
Pfau
Reichenstein
Sass
Vanderhei
Warshawsky
Copyright © 2014, The American College.
All rights reserved. Used with permission.
Educators
Franklin
Hegna
Jordon
Rappaport
Timmerman
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Tools
Freitag
Hegna
Malhotra
Meyer
Pechter
Huxley
Practitioner/
Experts
• Baldwin
• Caudill
• Cloke
• Kitces
• Guyton
• Newman
• Schiff
• Rosen
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.
Copyright © 2014, The American College.
All rights reserved. Used with permission.
Course #1: HS 353
The Retirement Income Process
1.
2.
3.
4.
5.
Evaluate the client’s current
situation
Identify and prioritize
retirement goals
Estimate retirement income
needs
Identify sources of income
and assets available to
generate retirement income
Make a preliminary
calculation of the client’s
preparedness for retirement
Copyright © 2014, The American College.
All rights reserved. Used with permission.
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 354
Sources 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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
Course #3: HS 355
Managing the Retirement Income Plan
• Choosing tax compliant distribution options from taxadvantaged 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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
Selected Top Placements
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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)
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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)
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February7th – By Kathryn Buschman Vasel - 7 Tips For Women To Have A More
Secure Retirement (Dave Littell)
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)
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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
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November 11th – By Amy Feldman - Thinking Long Term (Jamie Hopkins)
January 12th – By Anne Tergesen - What You Know About Retirement
Investing Is Wrong (Wade Pfau)
Selected Top Placements
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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)
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November 8th – By Paul Katzeff - How To Grow Your Business: Tips
For Financial Advisers (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)
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December 19th - By Janet Kidd Stewart - Some Final Tax Moves To
Consider In 2013 (Dave Littell)
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April 30th – By Richard Eisenberg - Is Too Much of Your Retirement
Money in Stocks? (Wade Pfau)
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October 29th – By Anne Tergesen - What Retirement Experts Lack:
Expertise (Dave Littell)
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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)
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
Copyright © 2014, The American College.
All rights reserved. Used with permission.
SEIZE THE RETIREMENT INCOME
OPPORTUNITY
CALL TO ACTION:
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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
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Learn about the NEW Social Security Calculator!