Wealth2k's The Income for Life Model® Helps Securities America Address Sophisticated Income Distribution Strategy Needs.
(Omaha NE) May 14, 2007 -- Securities America Inc. today announced an enhanced client communications and planning toolbox for representatives to use as their clients approach the income distribution phase and increasingly worry about outliving their money.
"We've been using the Income for Life Model® developed by Wealth2k for almost two years," says SAI First Vice President for Wealth Management Services Paul Lofties. "In addition to rolling out related/new marketing communications strategies, we are working jointly with Wealth2k on enhancing the proposal development system, which will support our advisors in creating illustrative portfolios for clients based on a range of variables and assumptions."
The ever-increasing complexities involved in developing an appropriate income distribution strategy are in large part driven by client emotions and behavior, Lofties says.
"We've developed a special ROI Profile – a unique client communication and planning tool – to help advisors capture and quantify their clients' fundamental concerns about reliability of income, or the new ROI," he says. "This questionnaire determines both a guarantee factor and a volatility factor. Practically applied, the guarantee factor score will determine what percentage of the client's portfolio should be dedicated to a guaranteed solution, while the volatility factor score determines what investment assumptions should be used for the Income for Life Model® portion of the client's portfolio. The score produces recommendations within ranges instead of an absolute recommendation.
Risk tolerance questionnaires are standard in the accumulation phase of planning, Lofties says.
"It's only logical that the same methodology be applied to the distribution phase, but I have never seen anyone else assess the value of guaranteeing a portion of the client's income stream based upon their responses to profiling questions," he says.
According to Wealth2k CEO, David Macchia, "The level of sophistication Securities America is applying to income distribution planning can truly be categorized as industry-leading. The income modeling capability offers significant value to clients concerned about their long-term retirement income needs."
Securities America will also provide advisors with a new tool designed to help clients identify their retirement hopes and dreams: the Imagine book and corresponding training course called, Painting Your Client's Retirement Portrait. The fourth tool is a recently-developed white paper that offers an analysis of several widely accepted distribution strategies and draws conclusions about when it would be best to apply them.
"A tidal wave of Baby Boomers is moving into retirement, and representatives must be prepared to serve them just as well in this phase as they have in the asset accumulation phase," Lofties says. "With focused training and powerful communication tools like these, we are putting our representatives at the forefront when it comes to providing clients with the best possible support."
About Securities America
Headquartered in Omaha, Nebraska, Securities America, Inc. has more than 1,800 financial professionals nationwide with more than $41 billion in client assets under their supervision. Securities America Advisors, Inc. is an SEC-Registered Investment Advisory firm with more than $12 billion in assets under management and administration that offers investment management, financial advice and financial planning through financial advisors. Securities America's mission is to foster the success of financial professionals so they can provide quality, objective advice and services to their clients. Additional information is available at www.securitiesamerica.com.
About Wealth2k
Wealth2k, Inc. provides customized income distribution solutions, rich multimedia educational presentations and web-based technology designed to enhance compliance and productivity in financial services. For more information about Wealth2k, Inc. visit www.wealth2k.com.
SOURCE: SECURITIES AMERICA FINANCIAL CORPORATION
For details or answers to questions regarding this or any Securities America topic, please contact Deb Hansen, Director of Marketing, at dhansen@saionline.com or call 800-747-6111 x.2284 or Natalie Hadley, Public Relations/Marketing, at nhadley@saionline.com or call 800-747-6111 x2508
