Products June 7, 2011

TIAA-CREF Develops RIA Network

TIAA-CREF has collaborated with the Center for Due Diligence (CFDD) and PlanTools to create the Advisor Network. 

  

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To participate in the TIAA-CREF Advisor Network, registered investment advisers (RIAs) must meet certain standards and pay an annual fee. 

The annual fee paid by advisers to CFDD for managing the program gives them support from TIAA-CREF, including personalized marketing materials, exclusive plan level arrangements, special training sessions, and participation in a new referral program, the company said.

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The Advisor Network’s minimum standards and adviser review will assist plan sponsors in meeting their fiduciary responsibilities, TIAA-CREF reported. It will also provide participants with access to a pre-screened network of qualified investment advisers who provide participant level advice at an investment advisory fiduciary standard of care.

“Our experience shows that individuals benefit from retirement planning advice and this Network offers a nice complement to the advice services we offer through our retirement plans,” said Rob Rickey, Head of Advisor Services, TIAA-CREF. “At the same time, increased focus on plan sponsor’s fiduciary responsibilities has led to greater demand for information and support. Our own experience with both individual and institutional clients has confirmed the growing need to support independent advisers.”

TIAA-CREF said it is currently selecting a limited number of advisers for a controlled launch of the Network over the next six months. This group will be the Network’s charter members and will provide feedback on the minimum standards and process for applying to the Network. The Network will be introduced nationally in early 2012.

Advisers who want to learn more about the TIAA-CREF Advisor Network should call TIAA-CREF’s Advisor Services at 888-842-0318.

Products June 7, 2011

MetLife Offers Guidance on How to Switch Gears

A recently published white paper from MetLife offers guidance for advisers about how to help clients transition from the accumulation phase to the drawdown phase in retirement.  
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The MetLife report, “Engaging Clients in a New Way: Putting the Findings to Behavioral Strategies to Work,” explains how the behaviors one has while saving for retirement should not stay the same in post-retirement years.

“There’s a delicate balance of logic, emotions, experience, and intuition that advisers today must incorporate into their practices to inspire action and confidence in their clients so they can act,” said Joseph W. Jordan, senior vice president, Behavioral Finance Strategies and one of the authors of the report.

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The report examines behavioral finance in the decision-making process. One example is the concept of “buying low and selling high;” a logical decision among investors.But as seen following the financial crisis of 2008, very few behaved accordingly.

“It becomes the task of the financial adviser to help understand and manage such behaviors, recognizing that their clients will base their decisions not only on what is sound, but also on how it makes them feel. In short, to grow and develop their businesses, advisers need to understand the clients’ emotions, help them come to decisions on their own terms, and inspire confidence so their clients can act on their best intensions,” added Jordan.

To facilitate the process, MetLife is offering a general questionnaire for advisers to complete with their clients to shed light on their clients’ income mindset. MetLife also has a similar tool for consumers called the Income Selector. The tool takes individuals through a series of questions to help uncover their attitudes towards traditional investments and guaranteed sources of income. Based on these answers, it suggests products and strategies that might be appropriate. Results from the Income Selector can be printed and shared with a financial adviser, or a link is provided to contact a financial professional to discuss specific financial products.

The white paper is available here. 

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