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Retirement Priorities Challenge Your client visited helpmysavingslast.com and completed the Retirement Priorities Challenge. This challenge is an interactive tool that helps investors consider their goals and risk preferences in retirement. By using 10 coins, your clients place each of the coins in one of the six categories – Rising Cost of Living, Market Returns, Years in Retirement, Cash Availability, Portfolio Management and Inheritance - according to what will matter most to them in retirement. When your client has completed the challenge, a report is generated that outlines their retirement priorities based on where they distributed their coins. They are prompted to contact you to see how their specific goals and concerns can be addressed using a Product Allocation approach to their retirement income planning. Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, and Product Allocation from Manulife are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. H e l p p r o t e c t a n d s u s t a i n w h a t y o u ' v e e a r n e d w i t h P r o d u c t A l l o c a t i o n . H e r e ' s h o w y o u d e s c r i b e d y o u r r e t i r e m e n t p r i o r i t i e s In the exercise you just completed, you determined some priorities regarding your goals and the risks you'll face in retirement. The more coins you put in any one bucket, the higher your priority for that category - in other words, you've ranked your level of concern for risk management and goal achievement. The results provided in this report are not intended to be investment advice. Results should not be solely relied upon when making investment or retirement planning decisions. By establishing your goal and risk preferences, you have the basic information you need to get your advisor started in putting Product Allocation to work for you. Product Allocation determines the optimal mix of financial products, according to your individual needs, for creating sustainable income throughout retirement. N e x t s t e p s Simply print this form, or forward it by email, and ask your advisor to determine your optimal Product Allocation. P o r t f o l i o M a n a g e m e n t - Y o u w a n t t o m a n a g e y o u r i n v e s t m e n t s n o w s o t h a t i n r e t i r e m e n t ( w h e n y o u ' r e m u c h o l d e r o r h a v e h e a l t h c o m p l i c a t i o n s ) y o u w o n ' t h a v e t o a d j u s t y o u r h a b i t s . C a s h a v a i l a b i l i t y - Y o u w a n t e a s y a c c e s s t o y o u r i n v e s t m e n t s t o h e l p c o v e r u n e x p e c t e d e x p e n s e s . Y e a r s i n r e t i r e m e n t - Y o u w a n t g u a r a n t e e d i n c o m e f o r l i f e . M a r k e t r e t u r n s - Y o u w a n t g u a r a n t e e s s o t h a t v o l a t i l e m a r k e t r e t u r n s d o n ' t h a v e a d r a m a t i c i m p a c t o n y o u r p o r t f o l i o ' s s u s t a i n a b i l i t y . I n h e r i t a n c e - I t ' s i m p o r t a n t t o l e a v e s o m e t h i n g t o y o u r f a m i l y , f a v o r i t e c h a r i t y o r c h u r c h . R i s i n g c o s t o f l i v i n g - Y o u a r e c o n c e r n e d t h a t o v e r t h e l o n g t e r m i n f l a t i o n c o u l d e r o d e y o u r b u y i n g p o w e r . Print your report
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Transcript of helpmysavingslasts3.amazonaws.com/zanran_storage/… · · 2012-05-01e nts ow o th ti r eti m...
Retirement Priorities Challenge
Your client visited helpmysavingslast.com and completed the Retirement Priorities Challenge. This challenge is an interactive tool that helps investors consider their goals and risk preferences in retirement. By using 10 coins, your clients place each of the coins in one of the six categories – Rising Cost of Living, Market Returns, Years in Retirement, Cash Availability, Portfolio Management and Inheritance - according to what will matter most to them in retirement.
When your client has completed the challenge, a report is generated
that outlines their retirement priorities based on where they distributed
their coins. They are prompted to contact you to see how their specific
goals and concerns can be addressed using a Product Allocation
approach to their retirement income planning.
Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, and Product Allocation from Manulife are trademarks of The
Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.
Help protect and sustain what you've earned with Product Allocation.
Here's how you described your retirement priorities
In the exercise you just completed, you determined some priorities regarding your goals and the risks you'll face in
retirement. The more coins you put in any one bucket, the higher your priority for that category - in other words, you've
ranked your level of concern for risk management and goal achievement.
The results provided in this report are not intended to be investment advice. Results should not be solely relied upon when making investment or
retirement planning decisions.
By establishing your goal and risk preferences, you have the basic information you need to get your advisor started in
putting Product Allocation to work for you. Product Allocation determines the optimal mix of financial products,
according to your individual needs, for creating sustainable income throughout retirement.
Next stepsSimply print this form, or forward it by email, and ask your advisor to determine your optimal Product Allocation.
Portfolio Management - You want to manage your investments now so
that in retirement (when you're much older or have health complications)
you won't have to adjust your habits.Cash availability - You want easy access to your investments to help
cover unexpected expenses.Years in retirement - You want guaranteed income for life.
Market returns - You want guarantees so that volatile market returns
don't have a dramatic impact on your portfolio's sustainability.
Inheritance - It's important to leave something to your family, favorite
charity or church.
Rising cost of living - You are concerned that over the long term
inflation could erode your buying power.
Print your report
Product Allocation is a retirement income solution that
can help you work with your clients to address their
concerns and preferences. In the past, investors used
to believe in working with multiple advisors so all their
retirement savings weren’t in one basket. But now
investors want to work with advisors that know their
complete financial situation and can create one plan
that maximizes their retirement income potential and
helps ensure that it will last for life.
Where to start?
Product Allocation creates an optimal mix of products
based on individual financial situations that tap into
the guarantees and features of each of the following
three product categories: Systematic Withdrawal Plan
(SWPs), Guaranteed Minimum Withdrawal Benefits
(GMWBs) and Annuities. A Product Allocation strategy
not only taps into the guarantees of the product
categories but it can also be adjusted to address
investors’ risk and retirement preferences.
To start implementing this strategy, use the innovative
Product Allocation Tool to calculate whether an Optimal
Product Allocation mix exists for your clients. This mix
determines the highest likelihood of sustainability
for your client’s retirement income. You can adjust
the Product Allocation mix to help meet your clients’
individual needs and retirement goals, such as the
ability to access their investments or help ensure that
their money won’t be affected by rising inflation rates.
hoW you can help implement your clients’ preferences?
The following examples may help you better
understand how your clients’ priorities could
influence the product mix you develop for them
using a Product Allocation approach.
ReTIReMenT PRIORITIeS
years in retirement – concerned about
outliving retirement savings
With Canadians living longer compared to previous
generations, your client could spend as much time in
retirement as they did working. Product Allocation
can help ensure your clients have a retirement income
plan that can last throughout retirement. To help
address this concern you may be able to adjust the
Optimal Product Allocation results to increase income
from guaranteed sources like annuities. Annuities can
provide a stable stream of income for life in exchange
for a single lump sum deposit.
inheritance – important to leave a
financial legacy
For many of your clients an important aspect of
retirement planning will be the ability to leave a
financial legacy. Recent market downturns have
demonstrated how volatility can deplete a planned
inheritance as investors realize they’ll need to use
their savings to fund their retirement. With a Product
Allocation strategy you can help ensure your client’s
potential financial legacy is sufficient and to provide
increased certainty, you can select to add life insurance
to your client’s portfolio. If your client has a very
high likelihood that their retirement income will be
sustainable, the Product Allocation Tool makes it
easy to determine if your client can take additional
retirement income to fund the premiums of a life
insurance policy. When your client passes, the
insurance’s death benefit proceeds help contribute to
their financial legacy.
cash availability – easy access to investments
Within the categories of Product Allocation, products
offering Systematic Withdrawal Plans (SWPs) tend to
have the highest degree of liquidity. If your client has
expressed a strong preference to have the ability to
access their money, you can increase the percentage
of assets in the SWP category in the Optimal Product
Allocation section. Guaranteed Minimum Withdrawal
Benefits (GMWBs) can also accommodate for liquidity
because they provide access to withdraw funds
but it could impact future income payments if the
withdrawals exceed the predetermined limits and
fees may apply. In order to be able to increase the
percentage of funds within the SWP category you may
consider decreasing the weighting in the annuities
category. Annuities can provide a stable stream of
income for life but they do not allow for flexibility to
change the investment or access the funds.
rising cost of living – concerned that inflation
over the long term could erode buying power
If inflation risk is a key concern for your client,
then you may want to consider allocating a higher
percentage of retirement savings to products that
help keep up with inflation. GMWBs can offer some
inflation protection through resets – when the markets
rise, the reset feature can increase the amount
of guaranteed payments. SWPs also have growth
potential to help keep up with inflation as long as the
investment is performing at a rate higher than the rate
of withdrawal.
portfolio management – desire to manage
investments now in order to be prepared for any
changes in the markets
Behavioural risk is another common concern for
investors either in or approaching retirement. As the
markets fluctuate and as investors grow older, the
ability to maintain composure and make rational
decisions during times of uncertainty can sometimes
diminish. This behaviour can have a negative impact
on a retirement income plan. With these types of
clients, you may wish to consider a stronger weighting
of investments towards products that can provide
guarantees like GMWBs or products that aren’t
affected by market performance like annuities.
market returns – a want for guarantees
to protect against the impact of volatile
market returns causing a dramatic impact
on portfolio’s sustainability
During retirement, your client’s rate of withdrawal
and the sequence of market returns can have a
dramatic impact on their portfolio’s ability to last
through retirement. If your client experiences poor
market returns early in retirement this may impact
how much income they can continue to take or how
long it will last. Product Allocation can help address
your client’s concern of not being able to cover their
essential expenses in retirement by allocating more of
their retirement savings in products offering sources of
guaranteed income. For discretionary expenses such
as travel or lifestyle expenses, investors may have more
tolerance for risk of market volatility and you can look
to select products with increased growth potential.
your opportunity With product allocation?
By implementing a Product Allocation approach with
your clients, you are demonstrating that you have the
ability to help ensure their retirement preferences can
be met and that you have a solution to help address
their retirement concerns. Product Allocation is a
retirement income strategy that can help ensure your
clients’ income lasts throughout retirement and one
that can help build and sustain your business.
Product Allocation can help you retain clients
throughout the retirement phase of their lives and
increase the value of your book of business by
expanding your range of products to gather additional
assets while being viewed as the advisor of choice.
FOR ADVISOR USE ONLYManulife, Manulife Financial, the Manulife Financial For Your Future logo, Product Allocation from Manulife, and the Block Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.TMK1165e 06/11
strong reliable trustworthy forward-thinking
for more information on product allocation, visit productallocation.ca, or for Questions regarding the product allocation tool, email [email protected]
