©2013 Denver Nowicz All rights reserved

Is employee financial stress costing you profits?

How helping employees plan for their future helps

your bottom line.

Denver Nowicz is an independent financial services professional. Over the last 12 years, he has successfully developed and implemented comprehensive, wealth-building retirement plans for individuals and businesses of all sizes. As the founder of Equity4Profit and Wealth For Life Financial Solutions, his dedication and personal attention have helped his clients achieve greater certainty and peace of mind by eliminating risk, reducing taxes, and achieving more predictable results. For more than five years he has hosted the “Get Wealthy Arizona” radio show featured throughout the state. Learn more about Denver by clicking this link:

www.linkedin.com/in/denvernowicz

About the AuthorDenver Nowicz

Financial stress in the workplace causes lower productivity and higher absenteeism.

Say employees are less productive while at work when they are woried about personal financial problems

Say that financial stress contributes to employee absences at their company

78% 58%EMPLOYERS SPEAK:

“ I see it every day. We’ve had so many employees whose homes have gone into foreclosure, their spouse was laid off, they’re sick. We’re seeing a lot of absenteeism surrounding those issues...”

HR Professional (4,000 + employees)San Francisco, July 2010

Financial troubles can decrease productivity by as much as 20 hours per month.

Cost to business: $15,000 per year per affected employee.

Source: The Journal of Employee Assistance. 1st Quarter 2009. January 1, 2009.

The Business Cost of Poor Productivity

Financial Stress and Productivity

“Having spent my career helping individuals and corporations increase productivity, I’ve become convinced that one of the greatest, unnoticed drains on individual productivity is the distraction that financial stress puts on people.”

DR. STEVEN R. COVEYAuthor of “The Seven Habits of Highly Effective People”

One of the biggest financial stresses is running out of money in retirement.

Percentage of Americans ages 44-49 who selected this as what they fear more:

Outliving money in retirement

23%

77%

Death

Why is running out of money such a big fear?

Retirement used to look like this

Guaranteed Income Sources

Risk Money

80% - Social Security & Pensions

20% -

? provided the bulk of retirement income

Investments could go up or down; provided for only a small portion of retirement needs

Guaranteed Income Sources

Risk Money

80%

20%

Today, government shortfalls, debt, taxes and the “all in” stock market philosophy have made retirement income look like this

Provide only a small portion of retirement income

The majority of retirement income comes from investments that are not guaranteed and could lose value

“Why I feel somewhat insecure— the uncertainty of the economy down the road and whether or not what I will be getting from Social Security or retirement would be enough to cover the rise of expenses and the cost of living and that kind of thing.”

—Older Boomer

I was in great shape, and then all that [the recession] hit, and I took a nose dive on a lot of things—personally, professionally—a lot of things hit.”

—Younger Boomer

“

To Help Reduce Employee Financial Stress...

75% 74% 78%Guarantees that offerstable but somewhatlower returns.

25% 26% 22%A higher degree of riskbecause the returnscould be greater.

81%

19%

Gen Y Gen XYounger Boomers

OlderBoomers

Employees say that when it comes to achieving their financial goals they prefer:

One part of a solution is to add a guranteed lifetime income option to your 401(k) or retirement plan

A guaranteed lifetime income (GLI) option is simply an annuity that employees can add money to over time, provides guranteed growth with no market risk and income for life at retirement.

• works with existing 401(k)s • has no asset fees to employer• little to no administration cost• plan is portable if EE leaves

Advantages of a GLI product:

Why add a guaranteed lifetime income option??

A Reliable “Paycheck”In Retirement

69%

15%

Employers who currently offer annuities

Employees who want an annuity in their 401(k) plan

• Many variable annuities offer lifetime income but the real account values are still subject to market risk and can lose value

• They also can contain fees as high as 3.5% per year

• The lifetime income values may not be portable if the EE leaves

As a result of risk, high fees and reduced control, variable annuities do not provide the peace of mind that is one of the major goals of the strategy.

Beware of theVariable Annuity Trap!

Summary

Financial stress at the workplace causes lower productivity and higher absenteeism. One step in reducing financial stress for employees is to provide a guaranteed lifetime income option for a portion of their retirement savings.

Please call our office and request a detailed proposal for your workplace: 480-970-5663

Also inquire about customized financial education events at your company. We can provide quarterly education events at your workplace covering your employees’ top financial concerns, such as:• Mortgage Payoff• College Funding• Retirement Planning• Personal Finance

To learn more visit:www.wealthforlife.netwww.linkedin.com/in/denvernowicz