What is the most valuable service advisors provide?

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Advisors say that preventing their clients from running out of money in retirement is one of their most important jobs.

 

The LIMRA Secure Retirement Institute asked more than 1,000 financial professionals to name the most valuable service they provide. The top response from advisors in all fields was ‘keeping their clients from running out of money in retirement.’ When asked if this could be accomplished by putting some of the client’s funds into a guaranteed income product, about 1 in 3 agreed.

 

As for how much should be invested in a guaranteed income product, responses varied depending on the advisor and segment of the market he or she served. "On average, advisors suggested that just under one third of their assets should be used to buy a guaranteed income product," says LIMRA "However, while 9 in 10 advisors agree guaranteed income products provide their clients peace of mind, 40% of advisors say these products compromise their ability to properly manage their clients’ portfolio and 30% believe the products are too complicated."

 

Which demographic should own these kinds of products? More than 70% of the advisors surveyed said that affluent (assets between $500k and $999k) and mass-affluent (assets between $100k and $499k) clients are the most suitable markets for guaranteed income products. LIMRA notes that just 3 in 10 advisors who work in the high net worth market (assets of $1 million or more) believe these clients would benefit from guaranteed income products.

 

As published in The Insurance & Investment Journal by Andrew Rickard Sept. 29, 2016  01:30 p.m.

 

If you would like to be confident that you won't run out of money in retirement, call 1-866-235-0004 and talk to a Four Points Financial Solutions advisor today - because tomorrow could be to late!