Products November 11, 2014

PIEtech Launches ‘myMoneyGuide’ Advice Solution

PIEtech Inc. unveiled the new myMoneyGuide financial advice delivery solution, which provides streamlined investor education and one-on-one participant support.
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As explained by PIEtech, the myMoneyGuide system leads investors through an online planning experience that provides a confidential and conflict-free environment to receive and implement live, expert advice. The firm says myMoneyGuide will allow “an unprecedented number of investors to be introduced to planning and to the importance of working with an adviser to achieve their long-term financial goals.”

A main feature of the advice solution is “The Lab,” a digitally enabled 90-minute advice session through which participants build a personalized plan for retirement. PIEtech explains that myMoneyGuide instructors, who are certified financial planners (CFPs), are brought in to moderate the process. The firm says a retirement plan’s own adviser can also join to provide additional commentary and insight. Participants can ask questions of the participating adviser, the CFP instructor, and software support personnel throughout the event. Each Lab is customized according to the attending audience’s demographics, employer benefits, and other specifics.

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The Lab covers important topics on the minds of investors today, PIEtech says, including retirement goals, Social Security strategies, health care costs, risk tolerance, asset allocation, savings, and other relevant matters. Unlike traditional seminars, myMoneyGuide Labs provide information specific to each participant.

Upon completion of the 90-minute live session, participants may request a complimentary review from their adviser. All plans created by the participants remain private until they choose to share their plan with the adviser, thus protecting the confidentiality of the participants’ information and leaving control of the process with each participant, PIEtech notes.

The solution is also built to support adviser practice management efforts. For example, when a participant elects to share their retirement plan developed through myMoneyGuide, the system automatically transfers that information to the adviser’s MoneyGuidePro software dashboard, eliminating the need for duplicate data entry.

PIEtech says the solution will also help employers meet education requirements under the Employee Retirement Income Security Act (ERISA) Section 404(c). Employers can also use the program to help employees calculate retirement needs, decide between a lifetime pension or a lump sum payout and evaluate other retirement options.

More information about myMoneyGuide is available at www.mymoneyguide.com.

Data & Research November 11, 2014

Middle-Income Boomers Could Use Professional Advice

Eighty-three percent of middle-income Baby Boomers have not had any type of formal training or education about topics related to retirement financial security, a survey finds.
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According to a recent survey from the Bankers Life Center for a Secure Retirement, 59% of middle-income Baby Boomers do not receive professional financial guidance of any kind, whether formal or informal. At the same time, a majority (62%) have some doubts that they will have enough savings to last throughout retirement.

The lack of education, services, and confidence can be attributed to a disconnect between Boomers and financial professionals, Bankers Life researchers suggest. The survey shows approximately four in 10 (39%) Boomers with between $25,000 and $100,000 in annual income do not think they need financial advice because they prefer to make their own financial decisions.

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The survey also finds many middle-income Boomers could be without adequate retirement plans due to the tendency of the financial services industry to cater to wealthy Americans. Of Boomers without a financial professional, 85% have not been contacted by one asking for their business in the past year, Bankers Life says, and another 63% have never been contacted. Among Boomers with an active relationship with a financial professional, 25% sought out the relationships themselves, while a mere 6% say the relationship was initiated by the adviser.

The relationships between middle-income Boomers and professionals can have positive results. Those who do turn to a financial professional generally have more saved for retirement. More than one-quarter (26%) who have a financial professional have investable assets of more than $500,000, compared to only 5% of those without a professional.

Middle-income Boomers should realize that not all of those working with a financial professional start with high levels of assets, according to Bankers Life. The study shows less than half (43%) who have worked with a professional for less than two years have less than $100,000 in investable assets, while a strong majority (75%) who worked with a professional for 10 or more years have more than $100,000 in investable assets.

About half (48%) who work with a financial professional are confident they will have enough money to live comfortably throughout retirement regardless of current asset level, while less than one-third (30%) without a professional feel the same way.

“Options are available for nearly any income and asset level, age and risk tolerance,” says Scott Goldberg, president of Bankers Life. “Boomers need to take the initiative, reach out to one or more professionals and develop a financial plan for their future, because as we can see, the results tend to pay off.”

Additional survey findings are available here.

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