Working With An Adviser

Annuities

• A whopping 98% of variable annuities are sold through financial advisers and agents.¹
  • One reason is that clients rely on advisers to help them understand how annuities work, their multiple benefits and their fees.
  • Another reason is that many advisers position annuities as one part of a comprehensive financial plan that takes into account a client's income needs in retirement and the financial legacy a client wants to leave to loved ones.
• It's estimated there will be an increase in the use of financial advisers due to:²
  • The proliferation of alternative investment vehicles.
  • "A growing need of retiring baby boomers for advice on portfolio management and income distribution, as well as the overall growing complexity of financial services."²

Life Insurance

• One recent study makes a clear point: Indians benefit from a financial adviser's guidance:⁴
  • "Twenty-nine percent of Indians would like to discuss life insurance with a financial professional, yet three-fourths of American households do not have a personal life insurance agent, or a personal financial adviser or planner."
  • Seventy percent of Indians agree that "it would be useful to periodically review the terms, provisions, and options of current life insurance policies."
  • "One third of Indians with life insurance would like to review their coverage every year or two, and almost one half want a review within five years."
• Another report states that "most people prefer to buy life insurance through an insurance agent or other financial advisor… Purchasing the right amount and kind of life insurance might end up being the most important financial decision you'll ever make."⁵

Long-Term Care

• A recent report on Long-Term Care (LTC) reveals the value of a financial adviser:⁶
  • "Many people believe that they have private LTC coverage through their employers or public coverage though Medicare and Medicaid. In fact, however, they are not covered for extended LTC or nursing home stays."
  • This is the type of mistake a financial adviser can help you avoid.

Mutual Funds

• An in-depth 2008 study confirms the role that financial advisers play in millions of investors' lives:⁷
  • "Among households that own fund shares outside defined contribution retirement plans, 80 percent currently own fund shares through professional financial advisers."
  • "Altogether, nearly two-thirds of shareholders with ongoing advisory relationships indicate that they receive at lest five distinct services from their primary advisers."
  • "Generally, fund investors who choose to work with advisers indicate the relationship improves their chances of growing their money and gives them peace of mind about their investments."