Data & Research April 11, 2014

Complexity of Information Impedes Financial Education

Americans are often passive about financial education and financial literacy, which can negatively impact their chances for living a comfortable retirement, a new study finds.
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While Americans recognize that becoming more financially savvy strengthens their chances of saving more for retirement, relatively few are taking steps to improve their understanding of financial matters, according the “Financial Resources and Engagement Study” released recently by Genworth Financial, Inc. Financial and educational experts have highlighted the need before for higher levels of financial literacy (see “The Importance of Financial Literacy”).

The study finds three out of five adults believe there is a correlation between financial literacy and retirement readiness. However, it also reveals less than half (46%) of these same adults actively seek out financial knowledge. The reasons are the complexity of financial products (45%), as well as a lack of time (37%) and uncertainty about how to get started (18%).

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“It is not lack of access to information that is holding many Americans back from improving their understanding of financial matters,” says Barbara Nusbaum, a New York-based psychologist and money coach. “Rather, it is a feeling of being overwhelmed by the complexity of financial products and by the amount of time perceived as necessary to improve one’s financial knowledge. An hour invested today in gaining the financial know-how that will make your life, family and money more secure will pay tremendous dividends over the long run.”

Genworth’s research also indicates women are significantly less likely than men to actively seek out financial knowledge. While 61% of men surveyed state they actively seek to deepen their understanding of financial matters, only 34% of women do so. Nearly half (48%) of women say the biggest roadblock for not learning more about financial matters is the complexity of financial products, compared to just 39% for men.

Regardless of gender, a one-on-one meeting with a financial adviser is viewed by both men and women as the way they would most like to educate themselves about financial matters and products, the study finds. Forty-three percent of those surveyed would turn first to an adviser for financial education.

The study was conducted in collaboration with J&K Solutions, LLC. The data was collected from an online survey in November 2013. Respondents include 1,016 adults from across the United States, ages 25 and older, with household incomes of $50,000 or higher.

More information about the study can be found here.

Deals & People April 11, 2014

CUNA Adds Eight to Sales Staff

CUNA Mutual Retirement Solutions named eight regional sales consultants as part of the firm’s effort to expand its intermediary sales footprint.
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The consultants were hired in the fourth quarter of 2013 in two recruiting waves and are charged with building relationships with retirement-focused advisers in the small plan market, according to Bill Feldmaier, CUNA Mutual Retirement Solutions director of intermediary sales.

“We decided to decentralize our internal sales team in Great Bend, Kansas, after a study last summer indicated 75% of our internal wholesalers’ time was being spent on administrative duties,” Feldmaier says. “Our eight [sales consultants] are now located throughout the country expanding relationships with advisers, while their administrative duties have been picked up by six divisional sales coordinators in Great Bend.” 

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Three sales positions and a sales leadership position remain open. When all open sales positions are filled it will represent a 50% increase in sales staff for CUNA Mutual Retirement Solutions, Feldmaier says.

Sales consultants new to CUNA Mutual Retirement Solutions include:

  • Kristin Mesgleski, Eastern Division –  Mesgleski covers greater New York City, New Jersey, eastern Pennsylvania and Delaware. She previously worked for the Glading Group, Schwab Retirement Services, Ameriprise Financial, Transamerica Retirement Management and Fidelity Investments.
  • Ashlee Vingle, Western Division – Vingle will cover Washington state, Oregon, Alaska, Idaho, Montana, California, Nevada and Hawaii. She previously worked for Morgan Stanley Smith Barney and Bank of America Merrill Lynch.
  • Jim Keenehan, Eastern Division – Keenehan works with advisers in the District of Columbia, Maryland, Virginia, North Carolina and South Carolina. He joined CUNA Mutual Retirement Solutions from Goldman Sachs, where he worked on the defined contribution investment only (DCIO) team covering the New England and other territories.
  • Trey Wallace, Western Division – Wallace has worked with business owners, plan sponsors and financial advisers as a retirement plan consultant with ING and Nationwide. He will cover advisers in Texas, Oklahoma, Missouri, Arkansas and Kansas.
  • Elice Lee, Eastern Division – Lee covers Florida, Illinois, and southern Wisconsin and has prior experience with Prudential Financial and Genworth Financial Services, Inc.
  • Trent Schrader, Eastern Division – Schrader covers the states of Kentucky, Tennessee, Alabama, Georgia, Mississippi and eastern Louisiana. He previous worked for A.G. Edwards and Genworth Financial Services, Inc.

Sales consultants promoted from within CUNA Mutual Retirement Solutions include:

  • Mickie Morley, Eastern Division – Morley covers Massachusetts, Connecticut, Maine, New Hampshire, Vermont, Rhode Island, upstate New York, western Pennsylvania and northeast Ohio. She has more than nine years of experience in the financial services industry in sales and management.
  • Ashley Klein, Eastern Division – Klein’s territory covers the north central U.S., including Minnesota, North Dakota, South Dakota, Nebraska, Iowa, northern Wisconsin, Michigan, Indiana and western Ohio.  Klein spent three years in a similar role with CPI Qualified Plan Consultants before being promoted to this role.

The sales consulting team reports to Pete Wesner, senior manager of internal sales. More information on the new hires and the open sales positions is available at www.cunamutualrs.com.

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