Products April 8, 2010

Nationwide IncomeInsight Workbook Goes Online

Financial advisers now have access to an online version of Nationwide’s The Retirement Income and Income Risk Workbook, which generates a suggested retirement income portfolio for clients.
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Nationwide said the workbook was created to help clients and their advisers evaluate whether a variable annuity and guaranteed minimum withdrawal benefit (VA+GMWB) strategy, such as Nationwide’s IncomeInsight, would complement their investment portfolio. The online version asks advisers to answer eight or nine questions about their clients, and then generates a suggested retirement income portfolio, which could include an allocation to a VA+GMWB.

Nationwide also announced the release of updated Nationwide-sponsored research by Ibbotson Associates about using VA+GMWB strategies. The update of Ibbotson’s 2007 research paper “Retirement Portfolio and Variable Annuity with Guaranteed Minimum Withdrawal Benefit (VA+GMWB)” claims that using a VA+GMWB can increase retirement income potential while decreasing risk.

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For more information about the updated whitepaper and the online version of the workbook, contact your wholesaler or sales center or contact Nationwide’s Income Planning Desk at 1.877.245.0763 or IPLNDESK@nationwide.com. 

In Practice April 8, 2010

Investors Want Proactive Communication from Advisers

Financial advisers who help clients to understand the impact of the markets have more satisfied clients, a recent survey suggested.
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The survey by Genworth Financial Wealth Management found that nearly two-thirds (64%) of individuals who said an adviser helps them understand market impact are extremely satisfied, while nearly three-quarters (73%) of those who said an adviser does not help them understand the market impact are dissatisfied. Respondents who indicated their advisers are more vocal are more likely to be “extremely satisfied” with their services. Of the respondents who said their adviser is “not very vocal,” 58% are not “extremely satisfied” with services, while 32% are.

Meanwhile, the survey didn’t find a direct correlation between a client’s satisfaction and the number of years an adviser has retained the client. Genworth Financial Wealth Management said those results underscore the need for advisers to raise the bar and find new strategies to keep their clients happy.

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“Last year’s financial meltdown showed we need new ways to approach investing and risk and better ways to communicate with clients,” said Gurinder Ahluwalia, president of Genworth Financial Wealth Management, in a release of the results. “Advisers who can talk in depth with clients about what is happening in the market and develop flexible strategies are more likely to have satisfied and loyal clients.”

Proactive communication also seems to correlate with more assets. Individuals who reported to be “extremely satisfied” with the level of service they receive from their advisers are more likely to have a higher proportion of total assets managed by an adviser, according to the survey. Of those “extremely satisfied with their adviser,” 35% reported that more than half of their assets are managed by an adviser. Those who are not “extremely satisfied” are most likely (45%) to have less than 25% of their assets managed by an adviser.

The survey was administered March 4 to 8 by Opinion Research Corporation (ORC) to 2,028 adults 18 years of age and older.

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