FOR INVESTMENT PROFESSIONAL S
Stay ahead of the game by offering
services that retirees may need
Fidelity Advisor Retirement Income Services | Overview
Evolve to a more efficient, profitable
business model
As more of your clients approach retirement age, your business model may need
to change. Analysis from Cerulli Associates & Fidelity shows that the increased
complexity and time intensity of retirement income planning may result in
advisors needing to reduce the number of clients they serve by 18%.1 In order
to remain profitable and continue to provide quality service, advisors need to
become more efficient.
The following suggestions are intended to help you establish a more efficient,
best practices approach to retirement income planning:
•S
hift your business focus toward investments that may be appropriate for
retirees, including annuities and other income-producing products.
•K
now how to help clients navigate rollovers from their 401(k) plans.
Build lasting client
relationships with retirement
income products
One of the first steps to building
retirement income plans is to
quantify clients’ essential expenses
and determine whether or not
reliable income sources such
as Social Security and pensions
will be enough to cover them
throughout retirement.
More often than not, these income
sources will be insufficient,
requiring clients to fill gaps by
Many pre-retirees and retirees may have substantial balances across one
converting a portion of their assets
or many retirement investment accounts.
into reliable income streams.
•D
eliver wealth management services designed to help clients protect,
grow, and transfer their money during retirement.
•U
se automated tools and advanced calculators to help manage the
complex, time-intensive nature of retirement income planning.
•E
xpand your professional network to be able to provide comprehensive
products and services to retirees.
Increase share of wallet
Wealthy older investors may prefer to work with a single provider that can
manage all of their financial matters.2 This “advisor consolidation” could help
you earn greater share of wallet from clients and prospects.
Not FDIC Insured • May Lose Value • No Bank Guarantee
* Subject to the claims-paying ability of the issuing insurance company.
1. Cerulli Associates & Fidelity Investments analysis, 2006.
2. Cerulli Quantitative Update, Retail Investor Metrics, 2009.
For Investment Professionals
For many retiree clients,
annuities may be a
suitable way to generate
lasting, reliable income.*
For retirement-focused
advisors who are helping
clients draw down assets,
the steady revenue that
annuities provide may
become a more important
part of their business.
More resources available
Please visit advisor.fidelity.com
or call your Fidelity representative
for planning tools, educational
information, and shareholder
materials designed to help you
take advantage of this opportunity
to build a successful retirement
income planning business.
Broker-Dealer Advisors
and Planners
800-544-9999
Insurance Inside Regional
Investment Consultants
800-544-1916
Insurance Relationship
Management
877-236-8119
Registered Investment
Advisors
866-544-1742
Expand your network to provide
more services
As clients begin to require a wider range of wealth management products
and services in retirement, you may want to consider tapping the expertise
of professionals in various fields. By developing relationships with attorneys,
insurance agents, tax and health care experts, and other professionals, you
may be able to operate more efficiently and, at the same time, offer more
comprehensive services to your clients.
If you have the flexibility to do so, taking a broader team-based approach to
retirement income planning can help you add value for retirees and potentially
generate revenue from products and services outside your area of expertise.
Mortgage broker and real estate agent
For many people their home is their largest asset and represents a significant
source of retirement wealth. Retired clients may look to you for guidance on
downsizing, relocating, or with reverse mortgages.
Tax/estate expert
For retirees, tax planning and diversification can be critically important for
retirement income management and for estate planning. You may want to
partner with a professional who can offer assistance in these areas.
Health care expert
Working with someone who is well versed in the highly complex issues related
Trust Institutions
866-544-1742
to health care, health insurance, and other geriatric concerns may help you
address one of clients’ primary retirement worries: health care costs.
Other product specialists
You may want to make connections with professionals within or outside of your
organization who have experience with annuities, 529 college savings plans,
and other investment products. Many retirees may seek to round out their
portfolios with additional investment vehicles such as these.
Fidelity Investments
Institutional Services Company, Inc.
100 Salem Street, Smithfield, RI 02917
542228.2.0 1.907166.101
0910
Fidelity Investments & Pyramid Design is a registered service mark of FMR LLC.
Not NCUA or NCUSIF insured. May lose value. No credit union guarantee.
For investment professional use only.
Before investing, have your client consider the funds’ investment objectives,
risks, charges, and expenses. Contact Fidelity for a prospectus, or if available,
a summary prospectus containing this information. Have your client read
it carefully.