March 17, 2008 10:15 ET
Wealth2k® Introduces Innovative Post-Retirement Income Solution
Creates Website to Highlight Competitive Advantages in Communications, Investing Framework, Compliance
CANTON, MA--(Marketwire - March 17, 2008) - Financial advisors and broker-dealers face a
massive yet challenging business opportunity in terms of helping Boomer
clients generate durable, inflation-adjusted retirement income. Today,
Wealth2k introduced The Income for Life Model® v.2.0, a
competitively-advantaged, post-retirement income distribution solution. A
new website, www.incomeforlifemodel.com, describes six areas that help
define that competitive advantage:
1. A time-tested financial model (time-segmented, "laddered" asset
allocation)
2. The inclusion of advisor-centric communication technology that educates
investors in a confidence-building manner
3. An illustration engine that allows for the flexible design of suitable
income-generation frameworks using strategic product combination
4. The capacity for compliance officers to manage the entire program in
real-time across complex distribution networks
5. An online process to determine an investor's true need for guaranteed
versus non-guaranteed retirement income
6. A "cross-religion" investing framework that blends guaranteed outcome
elements with time-segmented asset allocation
According to Wealth2k founder, David Macchia, "The Income for Life Model
v.2.0 provides financial advisors and broker-dealers with an easily
implemental, scalable strategy for approaching Boomer retirement
distribution as a business. It incorporates technology that allows for mass
education of investors in an advisor-centric manner."
Compliance-enhancing technology is a key advantage offered by The Income
for Life Model v.2.0. Compliance officers have complete authority over all
aspects of the solution landscape. Web-based, real-time management provides
transparency assuring that, on an advisor-by-advisor basis, all
investor-facing components feature appropriate broker-dealer disclosure.
"Cross-Religion" Framework
In line with the latest thinking on retirement income, The Income for Life
Model v. 2.0 illustrates guaranteed income sources such as lifetime
annuitization and variable annuity guaranteed income riders within the
larger "laddered" strategy framework. Says Macchia, "Advisors easily
illustrate guaranteed outcome elements for situations where clients require
the security of lifetime guaranteed income. Combined with the
period-certain income streams created by the time-segmented model, the
total solution provides stability, predictability, generous rates of income
and upside growth potential in one easy package."
Assessing Investor Tolerance for Retirement Income Risk
The Income for Life Model v.2.0 also features an online process for
determining an investor's need for guaranteed versus non-guaranteed
retirement income. "Not all retirement income sources are created equally,"
explains Macchia. "Some income sources, like lifetime annuitization and
GMWB riders, are guaranteed. Others are not and, in fact, are derived
through long-term risky investing."
The key question is how much of each type of income does an investor really
need? "Our solution answers this question and helps advisors determine both
the percentage of investment that should fund a guaranteed income vehicle
and the rates-of-return targets that should be used for the long-term
investing component. This improves the overall approach for
income-generation on behalf of investors and distributors."
Superior Context for Variable Annuities
Additionally, having process and context behind the selection of variable
annuities may prove valuable in post-sale review. "Simply put, the annuity
is better positioned, not as the solution to retirement income needs, but
rather a vital component of a larger, more strategic income distribution
plan. This is an important distinction that may boost market share for
VAs."
The Income for Life Model is available with a universal license for
broker-dealers seeking a firm-wide strategy for retirement income.
Individual advisors may also license the program by visiting
www.incomeforlifemodel.com.
About Wealth2k®
Wealth2k, Inc. (www.wealth2k.com) is a developer of compliant,
business-building solutions for financial services companies. Its products
feature advanced communications technology, innovative storytelling and
transparent, web-based management.