Products July 30, 2009

Resource Helps Advisers Deal with Clients’ Job Changes

John Hancock Funds said it designed a section of its Web site to help advisers assist clients who are facing job changes or losses.

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Under the “Retirement Planning” tab of the financial adviser site at www.jhfunds.com , advisers will find a resource center with worksheets, sales tools, a client seminar, and brochures, all developed to help clients keep their financial plans on track amid job disruptions due to the recession, John Hancock said in a press release.

“Advisers obviously cannot control the job market, but they can control the quality of their relationships with clients,” said Carey Foran Hoch, senior vice president and head of marketing for John Hancock Funds. “When clients have successfully navigated job shifts and the overall outlook improves, they will remember the financial adviser who went the extra distance for them in a tough time.”

John Hancock said the site offers tips such as ideas for organizing a networking event for “downsized” clients. It also provides a “Know Where You Stand Today” worksheet to help clients gain better control over spending habits and cash flow. A “Retirement Tracker” guide helps clients monitor and manage all their accounts, and reminds them to be aware of their options for rolling over into individual retirement accounts (IRAs).

Data & Research July 30, 2009

Fee-Based Advisers Expect Growth


Fee-based advisers expect growth in demand for fee-based advisory services and managed accounts, according to a survey from Jefferson National.

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Jefferson National found that 70% of fee-based advisers believe there will be a surge in the growth of fee-based advisory services.

Tax-deferral is considered “more important than ever” by 74% of advisers, especially in light of anticipated increases in both taxes for high-net-worth individuals as well as capital gains taxes once the recovery is in place, according to a release of the results from Jefferson National.

“There is a general consensus among advisers that taxes may increase and many consider tax deferral key to addressing the issue,” said Laurence Greenberg, president and CEO of Jefferson National. “In addition, tax-deferral can potentially generate higher after-tax returns for ctax-inefficient’ assets, such as REITS, bond funds, and actively managed stock funds.”

Furthermore, 85% of advisers surveyed said accumulation is critical, especially in light of the market downturn, according to Jefferson National. “Retirement ground rules used to be simple: Stay with a company, retire at 65, collect a pension and Social Security,” said Greenberg. “But faced with a failing retirement safety net, volatile markets and rising costs, a majority of advisers believe that investors need new ways to save more.”

Advisers see a future in alternative strategies and managed accounts. The majority (79%) of advisers surveyed think that there will be an increase in the use of managed accounts.

Of advisers surveyed, 70% believe that in the current market conditions, the use of more alternative investment strategies and non-correlated assets are a means of achieving greater diversification. “In today’s market, many advisers will argue that the traditional 60/40 equity and fixed-income portfolio is incomplete, and they work hard to strike a balance that includes more alternative asset classes and tactical asset management strategies,” said Greenberg.

More than 1,000 responses were collected online between March and June by Jefferson National.

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