Advisor Trend Monitor Survey

Transcription

1 2013 Advisor Trend Monitor Survey Advisor Plans For Retirement Income Published December 2013 Conducted by Advisor Edition Price: $150.00

2 The 2013 Advisor Trend Monitor Surveys Advisor insights on issues critical to asset managers In 2013, WealthManagement.com has teamed up with Fuse Research Network on this important series of research studies designed to explore advisor views on important topics that are of specific interest to the asset management community. Each study surveys the views of between 500-1,000 advisors and provide insights on what advisors are thinking and how that effects their decision making. The 2013 Advisor Edition reports are $150 each, or $500 for the complete set of four. Special Asset Manager Edition reports with custom cuts of the data designed to inform sales, marketing and product development decisions are available for $2,500 each. Purchase reports at WealthManagement.com/AdvisorTrends About WealthManagement.com As the digital resource of REP. and Trusts & Estates, WealthManagement.com provides everything wealth professionals need to know to stay knowledgeable about the industry, build stronger relationships, improve their practice, and grow their business all from one site. It boasts more than 60 editorial contributors who provide content for the more than 645,000 members of our wealth management community. About Fuse Research Network FUSE Research Network is a leading-edge decision support firm that employs a highly refined market intelligence capability to deliver informed, decisive, and forward- looking guidance to firms in the asset management industry. FUSE delivers tactical research-based, client- specific recommendations that improve the productivity and effectiveness of the resources devoted to sales, marketing, and product management Advisor Trend Monitor Survey Report Calendar February Advisor Use Of Alternative Investments August Advisor Views On Firm Marketing Support April Advisor Views On Wholesalers December Advisor Plans For Retirement Income (Page 2)

3 2013 Advisor Trend Monitor Survey Advisor Plans For Retirement Income TABLE OF CONTENTS General Information Firm type Principal job function Firm Profile How prominent retirement income is at the firm Whether advisors consider themselves and/or their firms as retirement specialists Retirement services they offer Whether retirement services are offered as a solo practitioner, or in partnership with other wealth advisors (and if so, who) Retirement Planning Products used or recommended for retirement planning Time spend on retirement planning for clients Portion of their AUM related to retirement investments Support Services Retirement assistance they value most from fund groups Relative importance of their needs for additional guidance Best firms for retirement planning support Sources of information for retirement planning decisions Retirement planning software they use Client Profile About The Survey Respondents The age distribution of their clients Years of experience Whether they have a targeted replacement rate and if so, what it is Age, gender The level of concern clients have for different situations in retirement Number of clients Outliving their money, sustaining their quality of life, the cost of Member of team vs. independent healthcare, aging out of their homes, inheritance issues, low interest Assets under management rates, rising inflation, long term viability of social security, general economic uncertainty Appendix (Page 3)

4 2013 Advisor Trend Monitor Survey Advisor Plans For Retirement Income A1: What type of firm do you work for? (646 respondents) Wirehouse or national firm % Regional firm % Independent B/D % RIA % Insurance firm % Bank brokerage % Other (See Appendix I) % A2: What is your primary job function? (635 respondents) Financial advisor % Financial planner % Registered investment advisor % Branch manager % Bank investment sales 4 0.6% Portfolio manager % Executive management/owner/principal % Sales assistant 5 0.8% Other (See Appendix II) % A3: Once you've taken the survey, would it be okay for the WealthManagement.com editorial staff to contact you directly with further questions? (660 respondents) Yes % No % (Page 4)

5 FIRM PROFILE B1: How prominent is retirement/retirement income as a theme at your firm? (618 respondents) Very prominent % Somewhat prominent % Not very prominent % Not at all prominent % B2: Do you consider your firm to be a specialist in retirement? (618 respondents) Yes % No % B3: Do you consider yourself to be a retirement specialist? (617 respondents) Yes % No % B4: Which of the following retirement services do you offer? (Select all that apply) (619 respondents) 401(k) rollover % IRA % Asset allocation % Comprehensive support % Choosing investments % Determining withdrawal rates % Estate planning % Tax services % Budgeting % Healthcare insurance % Other (See Appendix III) % None of the above % B5: Do you typically provide retirement services as a solo practitioner, or in partnership with other wealth advisors? (598 respondents) Solo practitioner % In partnership with others % (Page 5)

6 B6: If retirement services are provided in partnership with others, who do you typically partner with? (Select all that apply) (425 respondents) CPA/accountant % Healthcare expert % Insurance agent % Tax/estate attorney % Mortgage broker % Real estate agent % Other (See Appendix IV) % CLIENT PROFILE C1: What is the approximate age distribution of your clients? Silent Generation ( ) (521 respondents) 0-4% % 5-9% % 10-14% % 15-19% % 20-24% % 25-29% % 30-34% % 35-39% % 40-44% % 45-49% % 50-54% % 55-59% 9 1.7% 60-64% % 65-69% 7 1.3% 70-74% % 75-79% 3 0.6% 80-84% 2 0.4% 85-89% 4 0.8% 90-94% 3 0.6% 95-99% 1 0.2% 100% 2 0.4% Average: (Page 6)

7 C1b: Baby Boomers ( ) (531 respondents) 0-4% % 5-9% 3 0.6% 10-14% % 15-19% % 20-24% % 25-29% % 30-34% % 35-39% % 40-44% % 45-49% % 50-54% % 55-59% % 60-64% % 65-69% % 70-74% % 75-79% % 80-84% % 85-89% 4 0.8% 90-94% 4 0.8% 95-99% 0 100% 5 0.9% Average: C1c: Gen X ( ) (513 respondents) 0-4% % 5-9% % 10-14% % 15-19% % 20-24% % 25-29% % 30-34% % 35-39% % 40-44% % 45-49% 9 1.8% 50-54% % 55-59% 4 0.8% (Page 7)

8 C1c: Gen X ( ) (continued) 60-64% 1 0.2% 65-69% 1 0.2% 70-74% 1 0.2% 75-79% % 1 0.2% 85-89% % % 0 100% 0 Average: C1d: Gen Y/Millennials ( ) (468 respondents) 0-4% % 5-9% % 10-14% % 15-19% % 20-24% % 25-29% 7 1.5% 30-34% 7 1.5% 35-39% 2 0.4% 40-44% 2 0.4% 45-49% % 2 0.4% 55-59% % 1 0.2% 65-69% % % % % % % 0 100% 0 Average: 8.49 (Page 8)

9 C2: Do they have a targeted replacement rate? (551 respondents) Yes % No % C3: If yes, what is it? (125 respondents) Less than 60% % 60% - 69% % 70% - 79% % 80% - 89% % 90% - 99% 8 6.4% 100% or more 8 6.4% Average: C4: On a scale of 1-10, with 10 being of greatest concern, how would you rate the level of concern among clients for each of the following situations in retirement? (552 respondents) Outliving their money Average: 8.21 Sustaining their quality of life Average: 8.22 The cost of healthcare Average: 7.84 Aging out of their home (assisted living) Average: 6.63 Inheritance issues Average: 5.64 Low interest rates Average: 6.10 Rising inflation Average: 5.90 Long-term viability of social security Average: 5.91 (Page 9)

10 C4: On a scale of 1-10, with 10 being of greatest concern, how would you rate the level of concern among clients for each of the following situations in retirement? (continued) General economic uncertainty Average: 7.11 Other (please specify) Average: 6.44 C4other: If other, please specify (50 respondents) (See Appendix V) RETIREMENT PLANNING D1: What products do you use or recommend for retirement planning? (Select all that apply) (533 respondents) Life insurance % Annuities % Mutual funds and ETFs % Stocks % Laddered bonds % Other (See Appendix VI) % D2: What portion of your time is spent on retirement-related planning for your clients? (539 respondents) Less than10% % 10%-19% % 20%-29% % 30%-39% % 40%-49% % 50%-59% % 60% or more % Average: D3: What portion of your assets under management is related to retirement investments? (511 respondents) Less than 25% % 25%-49% % 50%-74% % 75%-100% % Average: (Page 10)

11 SUPPORT SERVICES E1: Please select the three types of retirement planning assistance you value most from fund groups. (Select up to three) (471 respondents) Decumulation strategies % Social Security planning strategies % Managing retirement healthcare expenses % Minimizing retirement taxes (e.g. by account registration and RMDs) % Regulatory updates % Retirement planning and investing tools (e.g. JP Morgan s Target Date Compass) % Access to consultative retirement resources group (e.g. Janus Retirement Strategy Group) % Other (See Appendix VII) % E2: On a scale of 1-10, with 10 being most needed, how would you rate your need for additional guidance in each of the following areas? (478 respondents) Taxes in retirement Average: 5.85 Income generation Average: 6.40 Social security Average: 6.23 Longevity concerns Average: 6.27 Healthcare costs Average: 6.95 Guaranteed products Average: 5.38 Phased retirement Average: 5.62 Prospecting retirement clients Average: 6.26 (Page 11)

12 E3: In your view, which 3 firms are the best with retirement planning support? #1 (287 respondents) (See Appendix VIII) #2 (251 respondents) (See Appendix IX) #3 (229 respondents) (See Appendix X) E4: What other sources do you use for information on making retirement planning decisions? (Select all that apply) (470 respondents) Financial business publications % Research reports % Media websites % Investment firm websites % Newsletters % Webinars % White papers % Conferences % Other (See Appendix XI) % E5: What retirement planning software do you use? (Select all that apply) (418 respondents) emoney % LifeYield 0 Money Tree % Morningstar % NaviPlan/EISI % Still River 0 Sungard % Torrid Technologies 1 0.2% In-house / Home Office Proprietary Software % Other (See Appendix XII) % E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (326 respondents) (See Appendix XIII) (Page 12)

13 ABOUT YOU F1: Approximately how long have you been a financial services professional? (422 respondents) Fewer than 5 years % 5-9 years % years % years % years % 25 or more years % Average: F2: Approximately what is your age? (478 respondents) Under to % 35 to % 45 to % 55 to % 65 or older % Average: F3: What is your gender? (479 respondents) Male % Female % F4: How many clients do you have? (470 respondents) Fewer than % % % % % 500 or more % Average: F5: Are you a member of a team, or do you work solo? (475 respondents) Member of a team % Work solo % (Page 13)

14 F6: What is the approximate total dollar amount of ALL assets you manage on behalf of clients? (432 respondents) Less than $25 million % $25 million - $49.9 million % $50 million - $74.9 million % $75 million - $99.9 million % $100 million - $149.9 million % $150 million - $199.9 million % $200 million to $249.9 million % $250 million to $349.9 million 4 0.9% $350 million or more % Average: (Page 14)

15 2013 Advisor Trend Monitor Survey Advisor Plans For Retirement Income Published December 2013 Appendix

16 Appendix I A1: What type of firm do you work for? (Other responses) 403B group and Financial Planning firm Accounting firm (4) Accounting professor Advisory Firm Art Asset Manager Attorney at Law (4) Bank Bank Investment Group Bank Private Client Services Bank Trust and Investment Department Bank Trust Department (2) Bank Wealth Management Department Bank with brokerage dual employees Benefits consultant Board of Trustees, NC Supplemental Retirement System Business Coaching Firm Business Service Provider BFSI Domain Charitable Marketing Chase Bank College Consultant (8) CPA firm (15) (Page 16)

17 Appendix I A1: What type of firm do you work for? (Other responses continued) Custodial Services firm for RIA's Delaware Trust Company Distributor Entrepreneurial firm Estate Planning Firm (2) Estate, Financial, Tax, Retirement Planning Family Office (4) Fee only Financial research analyst Former planner Fund company Government (2) H & R Block Hedge Fund Hybrid RIA & Independent B/D Hybrid I specialize in coaching Financial Advisors In-house attorney at airline In process of building a family office Independent money manager Independent CPA Independent Financial Consultant (Page 17)

18 Appendix I A1: What type of firm do you work for? (Other responses continued) Independent financial planning Independent registered investment advisory service Individual Institutional consultant Insurance BD that is moving independent International Investment Bank Investment Management (2) Large, local CPA firm Law firm (49) Law School Lawyer solo practitioner Local CPA firm (2) Legal Legal documents Local accounting firm Local firm (4) Local law firm (3) Management consulting Managing Trustee Marketing Marketing research firm (Page 18)

19 Appendix I A1: What type of firm do you work for? (Other responses continued) Military Money Management Mortgage Bank Mortgage company Non traded REIT distribution company Non-profit (2) PE Firm Pension Services Portfolio manager via Ind. RIA (FSC) Private Bank (2) Private trust company Privately owned law firm Provider of marketing services Public Accounting Firm (2) Public Relations Real estate analysis Record keeper working with financial professionals Recruiting focused on wealth management market Regional Public Accounting Firm Research & Consulting Retail Banking and Wealth Management Retired independent b/d (Page 19)

20 Appendix I A1: What type of firm do you work for? (Other responses continued) RIA & Bank Fiduciary Self - Independent Financial Planning Firm Self employed consultant Self-employed attorney Single Advisor Office with Field oversight Single CPA practitioner Single family office Small law firm Software development firm Sole practice attorney (2) Sole Proprietor Solo practice Solo practice Solutions provider Tax accounting (2) Tax department Tax Practice Training Trust company (4) University Wealth Advisor Wealth management division of a commercial bank (Page 20)

21 Appendix II A2: What is your primary job function? (Other responses) 401k advisor Accounting and analysis Accounting and tax planning Accounting manager Administrative Asst. II Advisor to Shearson Financial Asset manager Assistant Attorney (21) Attorney and legal advisor Attorney trust and estates litigation Attorney, estate planning Attorney, Retirement Plan Administrator Attorney/partner Audit partner Audit quality control Audit/Tax Author and speaker Business Coach and Consultant Business Development (2) Business Development & Account Management Business valuation expert (Page 21)

22 Appendix II A2: What is your primary job function? (Other responses continued) CCO CEO (3) Coach Compliance Consultant (6) Consulting with financial professionals who focus on retirement CPA CPA- Tax Advisor/PFS Data Entry Education Estate and financial planning Estate and gift planning Estate and Trust compliance Estate planner (2) Estate planning and administration Estate planning and tax Estate planning attorney (6) Estate planning, wills, trusts Estate Planning/Litigation Executive Director & Publisher Fiduciary (Page 22)

23 Appendix II A2: What is your primary job function? (Other responses continued) Financial reporting Helping on discretionary decisions for private trust companies Home off director of operations trading Home office program manager Identifying wealth management candidates for my clients In-house Counsel In-house ERISA counsel Independent Consultant Insurance Broker Internal Wholesaler IT Consultant Law professor / counselor to families & foundations Lawyer (8) Lawyer/advisor Legal (2) Legal advice Legal compliance Legal Counsel Legal services Librarian Litigation and Regulatory Consultant and Expert Witness Managing Partner (Page 23)

24 Appendix II A2: What is your primary job function? (Other responses continued) Market Intelligence Marketing Marketing director Master Tax Advisor Mortgage Advisor Municipal bond trading and finance Mutual Fund Sales Of counsel Of Counsel to a Law Firm One of nine appointed NC State Trustees Operations/Client Service Manager Owner Owner/financial advisor Partner (3) Partner/ CPA Patent prosecution Planning and General Advisor Portfolio consultant Practice manager/tax accountant Prepare estate plans Primarily estate planning, probate and trust administration Primary attorney (Page 24)

25 Appendix II A2: What is your primary job function? (Other responses continued) Problem solving Producer P&C personal financial rep Producing Branch Manager (2) Product/Sales Management Professor Program management advice Real estate law Recruitment and business development Registered Rep (2) Retirement consultant Retirement Plan education Retirement Plan Sales/Account Exec Risk Consultant Sales & Distribution Sales Consultant Sales strategist Sales supervisor Sales, introducing RIA's to Trade PMR Senior Analytics Manager Support to a Financial Planner Tax advisor (2) Tax Advisor, Auditor (Page 25)

26 Appendix II A2: What is your primary job function? (Other responses continued) Tax and financial advisor Tax and financial planning Tax Attorney Tax Compliance Tax Consultant Tax Manager Tax partner in public accounting firm Tax planning Tax Preparer/Planner Tax preparer/semi-retired Taxation advisor Territory Sales Manager Training Trust Advisor Trust Marketing Trust Officer Trusts & estates attorney Vice President Wealth Management Banker Wholesaler (2) (Page 26)

27 Appendix III B4: Which of the following retirement services do you offer? (Other responses) 401(k) plans (2) 401k plan design, DB plans, fiduciary responsibility for plan sponsor 403(b) plan investment and administration 457 Deferred Comp Plan; 403(b) Plan Advice on capital preservation Advise on various retirement plans Alternative retirement distribution strategies Annuities, life insurance Asset protection/ tax mitigation Best use of assets during retirement Business strategy Charitable Gift Annuities Charitable income and estate planning Comprehensive Planning Comprehensive financial planning Consulting Services in the benefit area Creditor Protection DC and DB Employer Plans Disability Insurance and Long Term Care Divorce Financial Analysis Eldercare transition advice Employee Benefits Broker (Page 27)

28 Appendix III B4: Which of the following retirement services do you offer? (Other responses continued) Estate Management Consulting Estate planning Executive benefits Family business and trustee issues Financial Planning Software Full Service Law Firm Insurance Planning Investment Advisory Legal advice and planning related to retirement planning and asset protection Life and LTC Insurance (4) Life Insurance (6) Life Insurance as an Asset Long Term Care Insurance (6) Long-term care planning, Medicare insurance recommendations LTC Insurance/networking with estate planning attorney LTC, Medicare, social security LTCI and Permanent Insurance Managed Pension and Savings account Mortgages Multichannel Marketing Option advice Pension Trusts (Page 28)

29 Appendix III B4: Which of the following retirement services do you offer? (Other responses continued) Personally none, my firm does all Philanthropic planning (intersecting with wealth and estate planning) Planning for executive benefits Pricing for retirement products and investments Private Placement Life Insurance Record keeping and plan servicing Record keeping, training and consulting Related legal advice Retirement planning review always a part of estate planning Reverse Mortgages Risk Mitigation SEP Plans, DB Cash Balance Plans Set up 401(k) and 457(b) plan and work one-on-one with participants Setting the investment menu at the plan level Social Security/Medicare Seminars Succession planning for closely-held businesses Tax Mitigation Planning Underfunded pension & OPEB liabilities We address all that are listed as our mission is to is to serve as a nonpolitical and neutral financial awareness advocate for the public, the professionals and their associations, educational institutions, and nonprofits. Being the foundation of choice to significantly improve financial awareness and financial literacy. (Page 29)

30 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses) Actuaries All including attorneys All of the above As a librarian I provide research Bank customers Bank, Brokerage Firm, Broker/dealers Brokers Client Corporate partners Financial advisors (9) Financial Advisor/Stock Broker Financial advisors, trust companies Financial planner (4) Financial planner/advisor (2) Financial professionals Fund Sponsors General legal Gift Planners Human Resource Specialists I am also a CPA I don't participate (Page 30)

31 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses continued) In force book of bus In-house partners Independent Financial Advisors Insurance Company Reps Investment Advisors (5) Investment banks Investment Brokers Investment firm Investment Specialist Investment Broker IT consultant It is prudent to have a partner who knows my clientele LTC Consultants Members of B/D Money manager My broker/dealer services My colleagues at the firm N/A (3) None (2) Other advisors (4) Our law firm provides estate planning services Partner (Page 31)

32 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses continued) Planner Practice Management Experts Private Banker Private client investment adviser Rarely do retirement planning Record keeper Refer to active FAs Retirement specialist Retirement service firms RIA (2) Rick Edelman of Edelman Financial Services TFA Capitol Special Products/Services To major providers of systems TPAs (3) Trust Administrator (in house) We hire our 3rd party administrator and our wealth management firms. We involve other BD/RIA firms as solicitors We partner with financial planners and accountants We work with each of these types of professionals, their associations and companies as our mission is to is to serve as a nonpolitical and neutral financial awareness advocate for the public, the professionals and their associations, educational institutions, and nonprofits. Being the foundation of choice to significantly improve financial awareness and financial literacy. Wealth Consulting Group (Page 32)

33 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses continued) Wealth management group Wealth Management Team Appendix V C4other: If other, please specify (Other responses) Affordable food, gas, healthcare America or the decline of society Another large pullback in the markets Business conditions Congress and the President's lack of leadership, the culture of dependency, the creation of massive, government programs and waste Creditor protection Destructive Washington policies Doing meaningful/purposeful work -- whether paid or as a volunteer; where to live that retains some core benefits of their current lifestyle in a too-high-cost-to-stay geographical area Education costs Estate Management/Distribution Fear that they are not knowledgeable enough about investment options Federal government dysfunction Financial leadership of country Funding charitable organizations and foundations General confidence in Washington D.C. Generation skipping wealth transferring (Page 33)

34 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses continued) Gifting Growing old & who will take care of them. Also, quality of life in late years How to pass on their estates safely and economically How to plan for retirement and allocate savings I cannot answer these questions Impact of long term healthcare on estate Income and estate tax at federal and state levels deteriorating investments and income Investment-related issues Keeping their job Long-Term Health Long-term viability of Medicare Maintaining mental capacity Meeting their actuarial assumptions My focus is on tax/estate planning services N/A (2) Obama Outliving their money, fear of advisors Philanthropic planning Political uncertainty Politics Proper governance and administration of financial resources. Quality of healthcare Retirement without undue worry (Page 34)

35 Appendix IV B6: If retirement services are provided in partnership with others, who do you typically partner with? (Other responses continued) ROI Sustaining capital Taxes The current administration changing AMERICA to the worse The majority of people who reach age 70 are out of money, this is BIG social and economic problem and challenge. Their individual health Transfer taxes Uncertain economy Uncertainty and becoming "sandwiched" between generations US government malaise Appendix VI D1: What products do you use or recommend for retirement planning? (Other responses) 4-asset class diversification, actively managed portfolios Again, I perform research for the attorneys All asset classes Alternative Assets Alternative investments (6) Alternatives, especially NT REITs As a nonprofit we don't recommend specific products but provide education on these and other products used for retirement planning. You should consider adding Real Estate, small business interests, and collectibles to your list. CDs, REITs (Page 35)

36 Appendix VI D1: What products do you use or recommend for retirement planning? (Other responses continued) CDs, savings accounts Charitable Gift Annuities and Unit trusts Charitable trusts CMO's, Z-Bonds and Principal Strips Corp. and muni's Custom portfolio Deeds of Trust Do not offer or recommend (3) Equity unit trusts ETFs (2) Financial professionals recommend products Fixed income Fully funding IRA's and 401ks HECM, Reverse Mortgages I do not recommend products (2) I typically represent sellers of all of the afore referenced products I work with financial advisors who make the recommendations. If, of sufficient wealth, 2-5% in fractional gold coins/silver Individual bonds & CDs Laddered CDS Long term care insurance (3) Managed Accounts (2) (Page 36)

37 Appendix VI D1: What products do you use or recommend for retirement planning? (Other responses continued) Managed LPs Managed money Managed Money - Third Party Managers Managed money programs geared to withdrawals Managed stocks and bonds MLCD MLPs My real estate report N/A (4) None (2) Not applicable Options Options for income Our state retirement system program Partnerships Professionally managed no load funds by 3rd parties Protecting against downside risk / events REITs (2) REITs, Alternative investment REITS, BDC's REITs, limited partnerships REITS, other DPP (Page 37)

38 Appendix VI D1: What products do you use or recommend for retirement planning? (Other responses continued) Reverse mortgages (2) Separately Managed Accounts SMA SPD Trust Services UITs (4) UIT's and VA's Wills, Trusts, DPOAs, AHCD, etc. Appendix VII E1: Please select the three types of retirement planning assistance you value most from fund groups. (Other responses) Asset Liability Studies Creditor Protection Demographic changes and potential impacts Do not utilize anything else from Fund groups Don't use retirement planning assistance from outside fund groups Estate Transfer Formal planning Fund Commentaries Home values, asset allocation, withdrawal rates Investment advice Long-term investment planning geared to retirement issues Managing risk vs. reward in relation to outpacing inflation for conservative investor (Page 38)

39 Appendix VII E1: Please select the three types of retirement planning assistance you value most from fund groups. (Other responses continued) N/A (3) No support sought from MF companies None of the above (3) Personal contacts with support wholesalers Planned gift strategies Proprietary Financial Needs Analysis Protecting against non-financial event risk Qualified Plans Real Estate for planning Research on issues Savings strategies Simplicity of IRA distribution management The ability to set up automatic withdrawal accounts We use Mercer as our consultant Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 Advisors Resource AGF Alliance Bernstein Allianz (2) American Funds (15) (Page 39)

40 Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 (continued Ameriprise (2) Annexus AXA (2) Bank of America Bernstein (2) BlackRock (11) Brown and Tedstrom Charles Schwab (2) Columbia Dimensional Funds Don't know Don't use retirement planning support from outside our firm E*TRADE Edward Jones (6) Fidelity (23) First command financial planning FPA Franklin Templeton (5) Genworth (3) Gradient (3) Great West (Page 40)

41 Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 (continued) Guardian Life Insurance H.D. Vest Investment Services Hartford Have not used any firms for support Haven't found one HFS I could not say, I ignore a lot of the marketing I don't I have no idea (2) I have no opinion on this issue Instream Invesco (2) JP Morgan Jackson National (6) Janus (3) Jefferson National (2) John Hancock (6) JP Morgan (14) Key Private Bank Kiplinger Kiplinger (Page 41)

42 Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 (continued) Lincoln Financial (2) Lord Abbett (3) LPL (2) LPL MassMutual (2) Merrill Lynch (7) MetLife (2) MFS Mine Morgan Stanley (9) Morningstar (4) MSSB N/A (7) Nationwide (4) New England Financial No one comes to mind No opinion (3) None (4) Northern Trust Northwestern Mutual Not aware of these services by this term (Page 42)

43 Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 (continued) Not sure (2) Number cruncher Old Mutual Only familiar with Fidelity Oppenheimer Funds (7) Pacific Life (3) Principle Group (2) Protective Prudential (14) Raymond James (5) RBC RIA (2) RMB Capital SBI Schwab Security Benefit SEI SEI Private Trust Small local firms Smith Barney Sun America (2) (Page 43)

44 Appendix VIII E3: In your view, which 3 firms are the best with retirement planning support? #1 (continued) T Rowe Price (3) TD Ameritrade Templeton Thornburg TIAA-CREF (3) Transamerica (6) UBS (4) Unknown (4) VALIC (2) Vanguard (8) We don't interact with fund companies Wells Fargo (4) Appendix IX E3: In your view, which 3 firms are the best with retirement planning support? #2 Allianz Allianz/PIMCO American Century American Funds (24) American General Ameriprise (Page 44)

45 Appendix IX E3: In your view, which 3 firms are the best with retirement planning support? #2 (continued) AXA (3) Barnes Wealth Management Bernstein BlackRock (5) BSI CBOE Citi Columbia Commonwealth Convergent WM (UHNW) Crump DYNAMIC Federated Fidelity (23) Forethought Franklin Templeton (8) Goldman Sachs (3) Great West Hilliard Lyons HorsesMouth I could not say, I ignore a lot of the marketing (Page 45)

46 Appendix IX E3: In your view, which 3 firms are the best with retirement planning support? #2 (continued) Insurance companies Invesco (3) Investor Trust Jackson National (11) Janus (3) Jefferson National John Hancock (2) JP Morgan Chase (8) Laird Norton Legg Mason (2) Lincoln National (9) Lord Abbett (4) MassMutual Merrill Lynch (10) MetLife (3) MFS (7) Morgan Stanley (3) Morningstar Motley Fool My BD, First Allied Securities N/A (6) (Page 46)

47 Appendix IX E3: In your view, which 3 firms are the best with retirement planning support? #2 (continued) Nationwide (4) Neuberger Berman None (6) Not sure NPC back office Nuveen NY Life Oppenheimer (4) PIMCO PNC Principal (2) Prudential (9) Raymond James (5) Retirement Income Network Reuters Sammons Schwab (4) Social Security Analyzer Sun America TD Ameritrade T Rowe Price (5) (Page 47)

48 Appendix IX E3: In your view, which 3 firms are the best with retirement planning support? #2 (continued) The Cogent Advisor TIAA-CREF Transamerica (3) TRP UBS Unknown (3) US Life USAA Vanguard (10) We don't interact with fund companies. Wells Fargo (3) Appendix X E3: In your view, which 3 firms are the best with retirement planning support? #3 Adviser investments Allianz (3) American Funds (12) Aria AXA (2) Ayco BlackRock (11) (Page 48)

49 Appendix X E3: In your view, which 3 firms are the best with retirement planning support? #3 (continued) Brownson Rehmus Foxworth Capital Group Companies Carr Riggs & Ingram Cetera Advanced Planning Group Charles Schwab (8) Curian Don't know Eaton Vance Equitable Family offices Fidelity (15) Fiduciary doctors First Trust Forethought Franklin Templeton (5) Fund Architects Generalli Hartford ICICI ING (2) Investor Group (Page 49)

50 Appendix X E3: In your view, which 3 firms are the best with retirement planning support? #3 (continued) ishares Jackson National (3) Janus (2) Jefferson National John Hancock (3) JP Morgan (6) Lincoln (6) Lord Abbett (5) LPL (3) Merrill Lynch (9) MetLife (3) MFS (3) Morgan Stanley Smith Barney Morningstar Mutual Funds N/A (8) Nationwide (5) New England Securities No one comes to mind (2) No opinion None (5) (Page 50)

51 Appendix X E3: In your view, which 3 firms are the best with retirement planning support? #3 (continued) Not sure (2) NY Life / Mainstay Funds Oppenheimer (5) Pacific Life (3) PCA Pengra Wealth Management PIMCO (2) Principal (5) Protective (3) Prudential (4) Putnam (2) RiverSource Raymond James (2) Saybrus Partners Scott Trade Social Security Admin Social Security Analyzer Southwest Securities Sun America (3) T. Rowe Price (3) TD Ameritrade (Page 51)

52 Appendix X E3: In your view, which 3 firms are the best with retirement planning support? #3 (continued) The rest of the Wires (ML, MS, WFA) Three Mentors TIAA-CREF Transamerica (6) Trilogy UBS (3) Unknown (3) US Global Vanguard (9) We don't interact with fund companies Wealth Counsel Wells Fargo (3) Appendix XI E4: What other sources do you use for information on making retirement planning decisions? (Other responses) Analysis software Books Calculator Colleagues Courses for designation as RICP CPA CPE (Page 52)

53 Appendix XI E4: What other sources do you use for information on making retirement planning decisions? (Other responses continued) External Partners-Mutual Fund Companies Guide to Markets - JP Morgan Horsesmouth IMCA, Journals, NAPFA, MSTAR Infre I am a CRC Investment firms newsletters IRC IRS website, CPA Legal journals, such as Estate Planning, Trusts and Estates, and Journal of Taxation Literature from MF companies Meetings with financial advisors Mercer and Prudential My FMO My own tracking of current information N/A (3) Newspaper articles Investment Firm Presentations Online calculators Other brokers Personal face-to-face meetings Professionals, peers and associates Proprietary information (Page 53)

54 Appendix XI E4: What other sources do you use for information on making retirement planning decisions? (Other responses continued) Quant technical based, Dorsey Wright, Hedgeye, Other Reviewing financial statements Software (3) Tax publications Trusted friends/advisors Appendix XII E5: What retirement planning software do you use? (Other responses) American Dream Planner BackRoom Technician (4) Cash Flow Fingerprint CFS Financial planning Crescendo Pro e360 Envision Excel FAST. Proprietary with Edward Jones Fidelity's online tool Financial Planners Financial profiles Financial Profiles; Echowealth HP 12-c I do not personally have such software (Page 54)

55 Appendix XII E5: What retirement planning software do you use? (Other responses continued) Income For Life Insmark instream (2) LifePlan Living Balance Sheet Local Financial Service Providers referred Mercer MF Co. MoneyGuide Pro (24) MoneyGuide Pro, Fidelity's Retirement Income Evaluator tool MoneyTrax Morgan Stanley N/A (7) NetX360 None (13) Own research PIEtech - MoneyGuidePro Plan Builder Proprietary Resources of Brokerage firms Retirement Planning 2013 Silver Financial Planning Software / Money Guide Pro (Page 55)

56 Appendix XII E5: What retirement planning software do you use? (Other responses continued) Tax Tools - to calculate various kinds of RMDs Thompson's UltraTax Wealth Enhancement Group Wealthcare Word and a calculator Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments) High Yield, IG Grade, TALF Paper TLGP Guarantee Paper Floating Rate, EM Debt High and/or growing equity dividend partially principal protected structured notes with contingent coupon tied to index of choice 5% avg. increase in risk assets Munis spend more A multi-purpose approach - high yield, floating rate bank loans, mortgages business development corps, real estate (non-traded and Public), MLPs, duration extension, high dividend assets Added additional products Added alternative investments rather than bonds. Not expecting alternatives to hit home runs, but be more sustainable and better performers than bonds. Added some risk Allocating some of the fixed income bonds to non-traded REITS. Trying to eliminate rising interest rate risk Alternative Investment Allocation Strategies. e.g. Absolute Return, Currency Strategies. Alternative investments that generate income Alternative investments, high yield bonds Alternatives (Page 56)

57 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) Alternatives, corp. Bonds and dividend paying stocks Annuities Appropriate funds that offer diversification, competitive rates (non leveraged) and daily liquidity. I avoid LSD. Leverage, synthetics and derivatives. Low cost will generate better returns in bond funds and good active management will out perform an index ETF over time. Measure tax equivalent returns in all cases. Do not reach for annualized yield. And risk principal monthly. As my clients get older, the legacy issue is becoming paramount for those in that category. As for the others I am keeping away from MF and sticking with VA much of which is because of diversified companies available and death benefit. Asset allocation Asset allocation based on risk profile-buckets / 6months-two years cash depending on how close to retirement-considering fixed and variable annuities as part never all of mix. Assume more risk but add hedges. Higher yielding stocks, Master LPs in taxable accounts, REITs in tax-deferred accounts, high yield munis in taxable accounts. Couple with leveraged directional ETFs. Avoid LT Treasuries. Balanced Balanced growth and income funds Balanced mutual funds for long term, irrevocable line of credit short term Balanced mutual funds plus a bond ladder if safety of principal is more important than simplicity using bond funds or use TIAA Traditional in IRA when available Based on a comprehensive retirement income plan based on life stages. Better asset allocation to some risk. Blending a portfolio Bonds Broad diversification both within and among all 18 asset classes. Not taking any big bets, own it all!!! Broadly diversified portfolio, using closed end funds for more of the bond exposure. Bucket approach. 1 to 2 years in cash, Shortening the bond ladder and adding more income producing stocks. (Page 57)

58 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) Buy high quality dividend paying stocks and bonds, depending on the amount of income needed. We have higher risk allocations for younger participants--and lower risk allocations for older participants. Buy whole life insurance By investing in dividend paying stocks. Change of products often changing risk exposure Change products Change products to some extent. Change Products, predominately to High Yield/High Security products. Changed distribution patterns and withdrawal strategies. Changed product mix to more insured products. Indexed Universal Life, Whole Life, Indexed Annuities, Variable Annuities. Changed products Changed products Changed products and investing with caution. Short term yields Changed products and mix Changed products; dividend payers to supplement interest income Changed the product mix- more alternative income strategies. Changed to more alternative income sources Changing product mix and building more customized strategies from the ground up Changing the products that I am using. Combination of High yield, foreign bond, MLP's, Preferred, traditional fixed income, muni's and dividend paying stocks. Combination of mutual funds and individual bonds Combination of the above including annuities with living benefits (Page 58)

59 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) Conservatively Constant monitoring and balanced portfolio strategies to deal with yield changes. Continued to suggest a mix of investments---depends on clients age. Convertible bonds. Most 401ks don't offer that, but if you have an IRA, you can do that. Covered calls, cash covered put spreads CRTs -- suggest index funds with traditional 40% fixed and 60% equity portfolios. Currency exchange rates. Dividends. Industry trends. Decreased duration on bond investments Def. increase risk Depends on their fixed income sources. Some I recommend using annuities and where that is not needed appropriate, I use a combination of high yield, bank loans, dividend stock funds, and non traditional proxies for fixed income. Depends on their risk profile. Usually, I suggest 20-40% allocation to the Guaranteed Annuity Option of a variable annuity with the balance diversified over several different sectors with rebalancing. Different products. Diversification among all asset classes and managers. Added more income producing funds Diversification and structured products with a waterfall exit Diversification; slight increase in risk utilizing Target Date funds or Balanced Funds as a small portion of allocation in an attempt to gain higher return over just using Stable Value funds for instance. Diversify income streams through various different allocations. Diversifying bond funds into credit risk vs. interest rate environments, i.e., SSR loan funds and high yield funds along with convertibles and preferred stock funds. Also use Prudential Defined income fund which grows guaranteed lifetime income payouts the longer a client delays distribution Dividend paying stocks & MLPs, SR floating rate bank loan funds, shorter duration bond funds including non-us, VA's with guaranteed income riders Dividend paying stocks and high yield funds. Also seek income globally Dividend paying stocks in MF's (Page 59)

60 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) Dividend paying stocks or baskets there-of Dividend paying stocks, REITs, Dividend focused mutual funds and ETFs Dividend producing stocks Dividend stocks Dividend stocks Dividend Stocks with a long term track record of increasing their dividend Dividend-paying stocks, high yield and floating-rate bonds, REITs and real estate mutual funds Either I get them to invest 50%or more in equities, or I have been using variable or index annuities. Equity dividends, rising dividends, high yield bonds. Fixed income barbell; Short Duration/Hi Yield Corp Fixed Index and Variable annuities Floating rate, preferred, convertibles, Focus is on total return, not income, so no change in product mix. Focus on stocks longer term for younger clients, focus on clear budget and expectations Focus on Total Return GE interest direct Generally we do not provide specific advice on this Guaranteed strategies and third-party money management Have always utilized a growth factor in retirement portfolios. When distribution phase arrives, we distribute straight from the growth accounts and do not convert to income products. Have avoided treasury and more recently begun to rotate from high yield bonds as rate trend higher, will return when cycle of rising rates flattens, use equity income and have been increasing equity exposure, mostly in funds, less variable annuities as markets rise, feel the cost of benefits are not as valuable as education of sound investment strategies (Page 60)

61 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) Have increased the use of High Yield and Dividend Equities Have worked with each individually High dividend high quality focused mutual funds; Total return guidelines High quality dividend paying stocks, and high yield bonds High quality dividend paying stocks, MLPs, high-yield bonds, municipal bonds High quality dividend stocks, UITs, Mutual funds, mutual funds w/ downside protection potential. High Yield and Equities High yield bonds and international bonds High yield bonds, funds and ETF's. Some alternative investments such as REITs. High yield floating rate, tactical SMA guar annuity payouts High yield funds, REITs High Yield High Dividend High yield returns individual bonds BB and above MLPs and REITs preferred stock optimize existing annuity features High yield stocks High yield, dividends High yield, REITs, business development companies High-yield equity ETFs. Higher weighting to dividend stocks Higher yield short duration. UIT with dividend themes. Living benefit riders on guaranteed programs Hold more in cash Holding greater % of cash, short duration bonds, and non-us bonds. (Page 61)

62 Appendix XIII E6: Generally speaking, how are you recommending clients invest in the current low yield environment? For example, have you increased risk in your clients portfolios in order to generate income (e.g., turning to high yield funds, etc.)? Or have you changed the products you are using? (Comments continued) I am not directly recommending anything to our clients as I am the librarian I am not in this field. I am not a retirement adviser. I don't know why you found me! I do not provide investment advice I don't make any investment recommendations, but will recommend investment advisors for my clients. I am not qualified to make investment choices. I don't make product recommendations. I don't recommend, as I am an attorney. I encourage clients to invest for the long term and use a total return approach for withdrawing. I believe in using short term (5 years or less), high quality fixed income and take the added risk in the equity markets. Many of my clients have at least 60% allocated to equities. I generally recommend a 65% equities with dividend paying funds and 30% high yield corp bonds and about 5% in cash... I have a mix of Fixed Period Income Annuities and Deferred Annuities. This gives income now and lets the client catch the wind when the market improves. I have become much more opportunistic, looking to make profits in both up and down markets by always buying whatever is least popular and selling whatever is currently desired by most investors. For example, I have recently been purchasing the shares of mining companies, which have been out of favor for most of 2013, while selling well-known blue chips, which had become too popular. I have changed to using more UITs and less bond funds I have not changed the products due to the low yield environment other than rebalancing I probably have a greater portion in equities than I would normally like to have. I recommend according to what is suitable for each client(s)' needs. I think you put me in the wrong category. I am a business, tax and real estate lawyer, with some estate planning. I do not give financial or investment advice. I use a harvesting approach with my clients. I use target segments and invest accordingly. I have a 1-5 year harvest asset, a 6-10 year harvest asset, an harvest asset, a harvest asset and a 20+-harvest asset. Each harvest is a little bit more aggressive in it's investments because we have a longer time to harvest. I'm using Taxable Bonds I've recommended index ETF's and annuities with guaranteed withdrawal benefits In alternate investments (Page 62)