taking american families from concerned to confident · taking american families from concerned to...

LIFE ● DISABILITY INCOME ● INVESTMENTS ● RETIREMENT ● EMPLOYEE BENEFITS

GUARDIANLIFE.COM

Taking American Families

from Concerned to Confident

Driving Successful Behaviors to Optimize Client

Outcomes by Understanding What’s on their Minds

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH GENERAL PUBLIC.

The Guardian Life Insurance Company of America, New York, NY. Material discussed is meant for general informational purposes only and is not to be

construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual

situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. 2016-24785 (Exp. 09/18).

2© 2016 The Guardian Life Insurance Company of America. All rights reserved.

For Financial Professional Use Only.

What we do…

Educate. Motivate. Inspire



To Better Understand the Drivers

of Emotional and Financial

Well-Being of American Families.

The Guardian Study of Financial and

Emotional Confidence



3 Key Themes:

1. American families’ emotional and financial well-being

are inextricably linked

2. Clients’ behaviors and actions may not be setting them

up for success - and causes stress and a lack of

confidence to varying degrees across the population

3. There are specific, model behaviors that the most

confident and assertive Americans exhibit

What the Research Says



Change client outcomes and

demonstrate you are the Trusted

Advisor:

Partnership: By asking the right

questions and listening carefully to

understand and “hear” their priorities

Educate: Build confidence in

their ability to make decisions with

you, and re-center their point-of-view

Ownership: Drive them to the

right solutions explaining why

Plan: Help them create a plan to

close those gaps and remain

confident in their approach

EDUCATION

PLAN

Our Theory



These five traits were most often

“considered absolutely essential”

in their advisor:

1. Is trustworthy

2. Has integrity

3. Is knowledgeable

4. Listens to me

5. Is experienced

Give me a little peace, love

and understanding



Respondents report working with an average of 2 advisors, Intensity of satisfaction

matters: Pretty Good is Not Good Enough

6%

6%

6%

7%

5%

7%

8%

8%

37%

39%

41%

41%

43%

45%

45%

46%

56%

54%

53%

52%

52%

48%

47%

45%

Is trustworthy

Has integrity

Is knowledgeable

Listens to you

Is experienced

Is smart

Communicates effectively

Understands your overall financial position

Poor Only Fair Pretty Good Excellent

Q. How would you rate your main financial advisor on that?

Yet, barely half of advisors get top marks for

these critical traits



These Traits are More Important Than Ever!



You are: trustworthy

You have: integrity

You are: knowledgeable

You do: listen

You are: experienced

We Know Our Advisors Are These Things

Why are only half of advisors getting

“Excellent” scores?



So, what’s the

disconnect?



Who did we survey?

Survey Methodology: Representative national survey of:

• 4,971 workers 18+ working full-time or part-time, never retired, with household

incomes of $50k or more.

• Weighted by age, gender, household income, ethnicity, and region to conform to

Census parameters, includes…

Guardian’s Average Client Profile: An oversample of 2,921 workers 18+

with household income $100k or more, similarly weighted

Conducted online December 28th, 2015 through January 22nd, 2016.

Let’s explore the research



They have a strong plan

Work with an advisor

High growth & protection

product ownership

High financial literacy

The right attitudes about

money

More positive, most

confident, & satisfied with

their lives

21%of working Americans are

“Confident and Assertive”

Meet Jim & Jane



They lack a strong plan

Hit or miss relationships with

advisors

Low growth & protection

product ownership

Low financial literacy

The wrong attitudes about

money

Most stressed, least confident,

& satisfied with their lives

26%of working Americans are

“Stressed and Struggling”

Meet Jim & Jane’s Friends


STRESSED BUT COPING

FEARFUL OF THE FUTURE

CONFIDENTAND ASSERTIVE

STRESSED AND STRUGGLING

Grouping Americans by similar attitudes about life and money, financial

decision-making, technology, sources of stress, and drivers of happiness.

% OF TOTAL RESPONDENTS: 26% 30% 34% 21%

ATTRIBUTES:Highest

Concentration Of Women

Highest Concentration

of Small Business Owners

Looking For Guaranteed Income in

Retirement

Oldest and Most Educated

Cohort

FINANCIAL AND EMOTIONAL CONFIDENCE (FEC) SCORE

4.7 6.4 6.3 8.2

SEGMENTS

4 Unique Segments We Discovered



● The Guardian Financial and Emotional Confidence (FEC) Score is a unique, proprietary

benchmark that leverages our research to create a standardized score which indicates

overall emotional and financial well-being.

● The score is based on responses to ten questions in the Guardian Study of the

Financial and Emotional Confidence covering a range of financial confidence, emotional

well-being and overall life satisfaction dimensions including perceived job security,

personal safety, work/life balance, overall confidence and satisfaction, financial

success, overall and financial accomplishment compared to respondents’ parents,

being ready for retirement financially and being on track to meet financial goals.

● The score thus ranges from zero to ten with ten representing a positive response to all

ten questions

● The mean score for all working Americans is 6.3

The Guardian Financial and Emotional

Confidence (FEC) Score


Model the ideal behaviors of those on track to make small, meaningful changes

in the emotional and financial confidence of clients and prospects

Financial Success

Low

Stress

Let’s Help American Families Go From

Concerned to Confident



0

1

2

3

4

5

6

7

8

9

Very Comfortable Not Comfortable

Confident, ready for retirement

Do financial planning

Very satisfied with life overall

Feel confident

Very satisfied with advisor

Live within my means

Have financial plan

Own whole life insurance

Focued long term, not short

Keep expectations realistic

Understand mutual funds

Plan created with advisor

Correlates of Success between the Very

Comfortable and the Not Very Comfortable



EDUCATION

financial concept &

product

understanding

PLAN

• Live within their means

• Have some form of a written plan

with specific objectives

• Appropriate product

ownership across both

growth and protection

solution sets

• Work with an advisor

and seek the tools

they feel best assist

them to plan

The Most Confident and Assertive Americans are More Likely to:

The Model Behaviors Fall into

These Categories



Let’s Dig a Little Deeper into the Emotional and

Financial Confidence of American Families



37% are NOT

satisfied with their lives

overall

37% are considering

delaying retirement

38% feel the need to

stay on top of breaking

news minute-to-minute

Americans are Stressed



More than 1 in 5

• Feel overwhelmed day-to-day

• Feel threatened by the possibility

of terrorism at home

• Are worked up by world

events

• Feel the pace of change is

not manageable

There is a New Normal


Thinking about your life priorities, please allocate 100 points of importance across

the categories below assigning the most points to your highest priorities and the

fewest points to your lowest priorities.

As an advisor, you play a key role in the overall satisfaction of your clients’

lives… what are you doing to ensure you fulfill this hefty obligation?

Retiring with a secure/adequate income

Staying fit and healthy

Raising your children (if any) well

Having enough money to enjoy life

Having a great marriage

Being happy

6.1

6.4

7.1

7.4

8.0

10.0

What are Their Top Life Priorities?


Top major financial priorities tend to align with what we can offer -

We are the only people that can provide certain guarantees

Please indicate below the extent to which each item is a priority for your household

What if We Zone in On Major

Financial Priorities?

7%

6%

10%

10%

18%

11%

18%

34%

42%

43%

46%

39%

45%

43%

59%

52%

47%

44%

44%

44%

43%

Having at least some guaranteed income apart from SocialSecurity in Retirement

Building Savings for any reason

Having a solid long-term plan for achieving your financialobjectives

Saving for routine expenses in retirement

Protecting your family financially if you die or are unable to work

Saving for unexpected expenses in retirement

Just keeping up with your monthly expenses

Not a Financial Priority Minor Financial Priority Major Financial Priority


Only one third or less would agree these attitudes describe them “Very

accurately” when it comes to money:

33%

32%

25%

21%

19%

19%

16%

12%

Financially, I'm much more focused on the long termthan the short term

I make every effort to be sure my financial expectationsare realistic and achievable

I get more satisfaction from saving and investing extramoney than from spending it

I need a thoughtful blend of insurance and investmentsto be both safe and successful

I'm pretty good about setting up a long-term financialplan and sticking with it

Protection comes first-I buy insurance to protect myselfand my family then invest what's left

I have people in my life I trust to advise me on financialtopics

I'm willing to accept lower returns in order to avoidabove-average risks

However, Attitudes About Money are Misaligned

with their Priorities


Base: own or are at least somewhat familiar with this product.

32%

27%

26%

25%

25%

24%

23%

23%

23%

23%

22%

20%

19%

19%

18%

Workplace retirement savings plan such as a 401(k)

Individual Retirement Accounts (IRAs) apart from Roth IRAs

Individual stocks and bonds

Mutual funds

Pensions

Roth IRAs

Term life insurance

Separately managed accounts

Disability insurance

529 College Savings plans

Whole life insurance

Business insurance such as key person insurance or…

Annuities

Universal life insurance

Variable universal life insurance

Only a third or fewer of workers assert a solid understanding of many common

financial products

Q. How well would you say you understand:

Financial Literacy is Not as High

as it Should Be


Only half of workers with a financial plan say their plan includes clearly stated

financial objectives.

Please indicate below what your plan includes.

50%

47%

42%

41%

40%

35%

34%

34%

26%

Clearly stated financial objectives

Your planning time horizon

Life and disability insurance

An investment policy that describes the types ofinvestments with which you are comfortable

Designation of the beneficiaries of your estate

Estate and tax planning

An expression of your tolerance for risk

An investment policy that stipulates your assetallocation targets

Educational funding planning

Base: Has financial plan 37%

For the 37% that actually have a written financial

plan, many lack core elements of the plan


By Household Income $50k+

Product Ownership

Q. Please indicate which of the products below you or a member of your household own.

76%

53%

50%

47%

46%

46%

44%

41%

41%

33%

25%

25%

18%

14%

14%

Workplace retirement savings plan such as a 401(k)

Individual Retirement Accounts (IRAs) apart from Roth IRAs

Individual stocks and bonds

Mutual funds

Whole life insurance

Term life insurance

Separately managed accounts

Disability insurance

Pensions

Roth IRAs

Annuities

Universal life insurance

529 College Savings plans

Variable universal life insurance

Business insurance such as key person insurance or buy/sell…

Product Ownership is Not as High

as it Should Be


30%

27%

22%

22%

21%

21%

20%

20%

18%

Strategies for creating retirement income

Savings tips

Updates on changes in tax law

Estate planning

Budgeting and managing cash flow

Health care expense planning

Life insurance

When to start drawing Social Security

Annuities

Retirement income strategies and savings tips are by far the most important

areas for which workers look to advisors.

Q. In addition to investments, on which of the following areas would you

like your main financial advisor to provide guidance?

Base: have used a paid financial advisor (47%)

What Do Clients Want to Know?


Respondents report working with an average of 2 advisors, Intensity of satisfaction

matters: Pretty Good is Not Good Enough

6%

6%

6%

7%

5%

7%

8%

8%

37%

39%

41%

41%

43%

45%

45%

46%

56%

54%

53%

52%

52%

48%

47%

45%

Is trustworthy

Has integrity

Is knowledgable

Listens to you

Is experienced

Is smart

Communicates effectively

Understands your overall financial position

Poor Only Fair Pretty Good Excellent

Q. How would you rate your main financial advisor on that?

Key Take-Away #1: A Lack of Emotional

Connection Exists



Great Discovery: Turn Something Analytical into

Something Emotional


Create the Vision:

1. Tell me about yourself and the people most

important to you

2. What’s your biggest concern?

3. If there were one thing you could do during the rest

of your life, what would it be?

4. Tell me about the goals you have for your children,

or others you provide for

5. Tell me what a perfect day in retirement looks like

Identify Their Behaviors, Attitudes and Perspectives:

6. Tell me about what keeps you up at night

7. What does risk mean to you?

8. Tell me what motivates you

9. Tell me about your greatest achievement

10. Tell me how you plan for life events

11. Tell me about what money means to you

12. Do you feel like you are a saver or a spender?

Why?

Let them talk… (they want to be understood):13. Do you find dealing with finances to be

overwhelming? Why?

14. Tell me about your biggest financial loss How did

you deal with it?

15. How would you feel about going without small

rewards in the short-term, for larger rewards in the

long-term?

Understand Their Current Landscape:

16. Do you consider yourself financially successful?

Why/why not?

17. Tell me about your financial plan – what’s in it?

18. Tell me about your relationship with your current

advisor(s)

19. What do you want most in your life right now?

20. Tell me, how you decide where to invest?

21. Tell me about what you own and why you own it

22. Tell me about how you feel about your financial

expectations, are they realistic?

22 Great Questions



Do you have an Education policy?1. Do you know your clients gaps – what questions are you asking during discovery?

– Attitudes about money?

– Product understanding?

– Basic financial concepts?

– Financial Literacy Quiz?

– LBS Investment Room

2. Ongoing Client & Prospect Seminar Strategy

– Frequency?

– Topics (Social Security?)

– Registration Strategy?

3. Content Sharing Strategy

– Frequency?

– Topics (Monthly Market Commentaries?)

– Distribution Methods: Social? Newsletter?

Key Take-Away #2: Education is Critical



What did you learn

today that you would

apply in your business

tomorrow?

What do you think?


Interactive digital experience

FEC assessment/quiz

Interactive data

Client Seminar Strategy

Whitepaper

FR Workbook

Consumer Brochure on Model Behaviors

Infographics and Articles on key themes

Infostat series

Full Executive Summary

Coming Soon: Resources to Activate

Research & Start Conversations



1. Identify 3 clients and/or prospects you are looking to

deepen a relationship with

2. Pick 3 of the 22 questions and try asking them

during your next client meeting (annual review?)

3. Email and let us know how it worked:

[email protected] and [email protected]

School’s Back in Session:

Homework Anyone?

mailto:[email protected]

mailto:[email protected]

taking american families from concerned to confident · taking american families from concerned to...

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