In an attempt to pull further away from the transactional nature of annuity sales, brokerage executives are using tools to help their advisers fit product sales into a planning context.
“It’s a process — retirement income — and more detailed conversation is needed,” Ed O’Connor, managing director of
UBS Financial Services Inc., said during a panel discussion Monday “Retirement income – Service or Product?” at the Insured Retirement Institute’s annual marketing conference in New York. “The conversation and the planning tools help you parse out what’s most important to clients.”
Asking clients about their fears — of both the markets and of running out of income during retirement — can help advisers plan for their clients’ needs, particularly when discussions goes hand in hand with planning tools, distribution executives said.
“There’s skepticism, fear and an element of distrust,” said Michael Stern, a panelist and national sales manager at Morgan Stanley Smith Barney LLC. “It’s very apparent that advisers want this integrated with their overall wealth management plan.
Since last year’s merger of Morgan Stanley and Smith Barney, the combined firm has kicked off an initiative called “the Retirement Standard.”
“It’s really centered around building competencies and awareness,” said Mr. Stern. The initiative involves a checklist to ensure that advisers are weighing factors such as Medicaid elections, pension elections and health care awareness.
Distancing itself from the transactional annuity sale,
Edward Jones has been transitioning its advisers to weigh other retirement income factors, including longer life expectancies and waning pensions. In order to help advisers get into that mindset, the firm recently launched a financial assessment tool, according to panelist Jeffrey Panchot, a principal for insurance marketing at
Edward Jones.
Newer advisers are more likely to use the tool, while their veteran counterparts already embrace the planning concept but are more resistant to change their methods. “You have those yellow legal pad advisers who just don’t embrace the planning tools,” Mr. Panchot noted.
