The turnkey retirement income program is designed to help JHFN advisers maximize sustainable retirement income for their clients and potentially minimize the risks clients may face, according to the company. It includes a Web-based product allocation analysis tool, an array of multi-media educational and training materials for clients and advisers. The materials have been submitted to FINRA and JHFN is awaiting its review.
The foundation of the Retirement Ready program is a product allocation tool called the RSQ (retirement sustainability quotient) Analyzer. An RSQ can range from a score of 0, where there is no likelihood of obtaining the desired income at retirement, to a score of 99, where the income stream is highly likely to be sustainable for life.
The RSQ Analyzer tool leverages a methodology developed by Moshe A. Milevsky and The QWeMA Group to determine each client’s optimal product mix and provide a quantitative measurement of the relative likelihood that their portfolio will generate the income they desire for the rest of their lives. The tool employs a product allocation strategy, which involves placing assets into distinct product categories to create an optimal mix of products, based on a client’s personal needs, which tap into each product’s features and benefits, the company said.
“Traditional strategies such as asset allocation, where clients invest in different asset classes according to their risk tolerance, may work well when accumulating assets. Alone, however, they are often not enough to help protect clients from key retirement risks such as volatile equity markets, inflation, sequence of returns, and longevity,” said Bruce Harrington, head of retirement sales and strategy, JHFN.
The tools available on JHFN’s Retirement Ready microsite include the RSQ Analyzer, multi-media educational and training materials, an expense calculator, worksheets, promotional literature, and a way for advisers to create personalized client reports.
A dedicated team of director Greg Melton and retirement income sales consultant Danny Francisco will support advisers in the retirement income effort, along with shared support staff members. Additionally, JHFN will be holding a series of training sessions during October and November in locations including Boston, San Francisco, Newark, Washington, D.C., Detroit, and Orlando.