Ashley Saunders

ashley

Forbes: Sequence of returns risk is ‘upending’ retirement

August 23, 2022 2022, Media, Wade Pfau No comments

Sequence of returns risk — defined as a risk of receiving lower or negative returns early during a time when withdrawals are made from an investment portfolio — is harming the ability for many seniors to retire when they initially planned to, throwing actual retirement dates into doubt as people everywhere continue to reckon with historic levels of inflation and economic volatility.

This is according to a column published by Forbes and written by retirement financing columnist Bob Carlson.

“About 48% of people who were planning to retire in 2022 are putting their plans on hold or reconsidering them, according to a recent survey taken by Quicken,” Carlson writes. “Another 22% of people who were planning to retire sometime after 2022 are considering delaying their retirement dates.”

An additional survey conducted by BlackRock indicated that the number of respondents reporting that retirement plans were “on track” declined by 5% to 63% compared to the same period one year earlier, with another 42% of respondents describing that retirement plans were altered by the ravages of the COVID-19 coronavirus pandemic.

“We’re living through an example of sequence of returns risk and how it can arise quickly and unexpectedly,” he writes. “Many people build their retirement plans on long-term average financial data or on the assumption that recent performance will continue indefinitely. Events often don’t unfold that way. The long-term average of stock index returns is the result of years of very different returns. It’s a rare year when the return of an index is close to its long-term average. In most years the return of an index is very different from the long-term average.”

In the past, sequence of returns risk has been a commonly-discussed retirement risk during times of market volatility by Wade Pfau, professor of retirement income at the American College of Financial Services and founder of RetirementResearcher.com. Pfau has previously described how a reverse mortgage has the potential to help someone at or near retirement avoid sequence of returns risk if a borrower taps a standby line of credit until the market — and their investments — stabilize.

“Even if the overall market recovers, a retiree spending from their portfolio might not get to enjoy that recovery,” Pfau explained in a 2020 episode of The RMD Podcast. “And that sequence of returns risk amplifies the impact of investment volatility. So, that’s where a reverse mortgage can fit into this in a number of different ways to help alleviate that risk on the investment portfolio.”

Read the Forbes column on current levels of sequence of returns risk.

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

How To Save for Retirement as a Single-Income Earner

August 23, 2022 2022, Media, Paul Tyler No comments

Planning for retirement is challenging for everyone, but it can be especially difficult for single individuals. Single-income earners need to prepare financially without the decision-making and income support of a spouse or partner. How can they get ahead of retirement and long-term financial planning?

If you’re planning on retiring single, take these steps to ensure you are able to positively position yourself for retirement.

Create a Financial Fallback Plan

Single-income earners may discover there’s a gap between what they think they need for retirement and what is actually required. Scott Pedvis, financial advisor with Wells Fargo Advisors, recommends singles create a financial fallback plan.

“A financial backup plan can involve a higher cash emergency savings and more robust disability and long-term care insurance protection than couples might select,” Pedvis said.

Without a second income, Paul Tyler, chief marketing officer at Nassau Financial Group, said a single person really has only one retirement saving lever to pull which is clearly labeled “expenses.” Singles may adjust their everyday lifestyle to help keep expenses low and embrace the habit of being intentional when it comes to making changes in financial planning.

Retire Comfortably

“A single person doesn’t have a partner to help think through the tough questions, including how to care for elderly parents, pay for healthcare if employment ends earlier than planned and covering inevitable long-term care costs,” Tyler said. “The decision process may be simpler with only one voice in the conversation. However, you need to prompt the dialogue yourself.”

Build a Network of Professional Advisors

While a single individual may prompt financial planning dialogue on their own, they do not necessarily need to go about every aspect of retirement alone.

If you need advice about important financial matters, don’t be afraid to reach out for guidance and support. Pedvis said singles retiring can build a trusted network of professional advisors. Among these members include a financial advisor, accountant, attorney and healthcare providers to be allies in their corner.

What about the role of family and friends in your network? Pedvis said it’s great to have strong relationships with friends and family to help you in times of need. However, single individuals need to make sure neither friends nor family members take advantage of their independent status or create serious financial burdens for you.

Retire Comfortably

Take extreme care before turning over your financial matters and decisions to anyone else, whether they are a loved one or a professional. Pedvis recommends single individuals stay actively involved in these decisions and work alongside people they trust to make decisions in their best interests. In the event you should become incapacitated, consider evaluating the possibility of engaging a corporate trustee to manage your finances.

Get Estate and Wealth-Transfer Plans in Place

Don’t delay when it comes to estate planning. Gather together the following key documents to form the foundation of an estate plan.

Will
Power of attorney (POA) for financial matters
Durable power of attorney for healthcare
Health Insurance Portability and Accountability Act (HIPAA) release authorization
Living will
Revocable living trust

“Carefully designate beneficiaries of assets in IRAs, employer-sponsored retirement plans, insurance policies and annuities,” Pedvis said. “Lay out clear directions for the distribution of remaining assets for your heirs and don’t forget about your digital assets and accounts.”

Plan for Change

Someone who plans to retire single may still experience life changes before their retirement date.

There’s still time for singles to enter into committed relationships or get married. If any of these life events happen, Pedvis said to make adjustments accordingly in your financial plan and plan for change.

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The Retirement Safe Withdrawal Rate Explained

August 23, 2022 2022, Media, Paul Tyler No comments

A reliable stream of funds to live on is a necessity for retirees. When a retirement fund is depleted, the retiree must rely on other sources of income to survive or return to work if possible. However, a properly calculated safe withdrawal rate can keep you from spending down your retirement savings too quickly.

A safe withdrawal rate:

Helps you avoid running out of money in retirement.
Will need to account for up and down stock market years.
Depends on the account holdings and risk exposure.
Can be used to pay for retirement expenses.

What Is the Safe Withdrawal Rate Method?

A safe withdrawal rate represents the maximum percentage of retirement funds a retiree may take from an investment portfolio on an annual basis without depleting the investment account too soon. Once you have determined a safe withdrawal rate, a retiree can then go ahead and plan a reliable household budget for retirement that may stretch 30 years or more.

How to Calculate a Safe Withdrawal Rate

Like the 4% retirement withdrawal rule, the safe withdrawal rate model usually leads to a retiree using no more than 3% or 4% of their total available retirement investment funds on an annual basis. For example, a 60% stocks and 40% bonds retirement portfolio allows for a 4% withdrawal rate with a high degree of confidence that the retiree will have sufficient funds for a 30-year retirement. “You could put 60% of your money in the S&P 500 and the 40% balance in an A+ corporate bond fund,” says Lyle Solomon, principal attorney of Oak View Law Group in Rocklin, California. “That scenario is simple, as there’s nothing more to think about other than collecting the money.”

To follow this withdrawal protocol, you would withdraw 4% in the first year of retirement, and that amount gets increased by the amount of inflation in subsequent years.

If your nest egg is $100,000:

Year 1: 4% of your $100,000 nest egg is $4,000.
Year 2: If there was a 3% inflation rate, you would withdraw $4,120.
Year 3: If there was a 2% inflation rate, you would withdraw $4,202.

However, a retiree doesn’t have to withdraw exactly 4% of his or her nest egg annually and could make adjustments based on stock market performance. You could choose to reset your withdrawal rate if the value of your retirement nest egg drops from year to year. “In that scenario, you could reset that year and restart at a 4% withdrawal rate of what’s left,” Solomon says. “In contrast, if your nest egg is growing by leaps and bounds, you could choose to increase the withdrawal rate.”

Pros and Cons of the Safe Withdrawal Rate Strategy

Like any investment management strategy, the safe withdrawal rate has its upsides and downsides. “The primary benefit of the safe withdrawal rate method is that it’s simple to understand and can encourage people to control their expenses,” says Paul Tyler, chief marketing officer at Nassau Financial Group in Hartford, Connecticut. “Controlling expenses is perhaps the biggest lever retirees can realistically control.”

The biggest risk with using the safe withdrawal rate strategy is that everyone has their own definition of a safe withdrawal rate. “Let’s say you decided 4% was the right amount for you to withdraw,” Tyler says, “Do you keep withdrawing this amount for the rest of time? What if the stock market drops and your account value dips, too? These are the questions a retiree should ask their trusted investment advisor.”

What Retirement Withdrawal Rate Is Right For You?

Determining your safe withdrawal rate starts with getting help from a retirement planner. A good money manager can look at your expenses and other sources of retirement income to develop a plan that works for your unique financial needs. “Any retiree, working with his or her advisor, must carefully establish a safe retirement withdrawal rate based on factors including predicted lifespan, the size of your portfolio, your outgoing costs and the amount of retirement income you already receive,” Solomon says.

The first step is to determine your financial needs. Then calculate how much of your expenses will be covered by Social Security, a pension or other sources of retirement income. Remember to factor in your life expectancy, perhaps by using a life expectancy calculator, and take into account any health concerns. You will also want to consider tax efficiency when timing withdrawals from your retirement accounts. “Make sure to review that plan every year,” Tyler says.

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Episode 161: Product Innovation in The Future

August 18, 2022 2022, Bruno Caron, Podcast, ReImagine Retirement, Retirement No comments

This summer, Nassau Re/Imagine hosted the first annual Retiretech Forum. Nearly 100 attendees representing industry decision-makers, and insurtech, fintech, and retiretech startups, joined us in Hartford, CT.

Six-panel discussions with over 25 speakers took the stage at the Retiretech Forum, exploring sales & marketing, service & operations, product innovation, risk management, climate risk, and core advisor software.

Today, we’re sharing our panel on Product Innovation hosted by none other than our new co-host, Bruno Caron. We called it “How Will Key Product Categories Evolve over the Next Five Years?”

We had some great speakers from PlanGap, Nuovalo, AM Best, Vitech Systems Group, Lincoln Financial Group, and The Index Standard.

For more information on the event and access to the panel recordings, go here:

https://imagine.nfg.com/retiretech-forum-2022/

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Episode 160: Insurance to Help Care Givers With Tom Beauregard

August 11, 2022 2022, Podcast, Retirement, Tom Beauregard No comments

Most of us will need long term care at some point in our life. What if we could purchase insurance that would help us and our caregivers navigate the process? Tom Beauregard, Founder and CEO of HCG Secure joins us today to talk about the insurance and services his new company offers retirees.

Links mentioned in the show:

https://hcgsecure.com/

https://www.linkedin.com/in/tom-beauregard-90203317/

Thank you to our show sponsor; The Index Standard!

Fixed Index Annuities and RILAs are getting more complex and technical just when fiduciary rules are getting stricter. How do you choose the right index and allocate to them? The Index Standard is your answer. They are an independent provider ratings and forecasts on all indices and ETFs used in the US insurance space. Their process is systematic and unbiased, identifying robust and well-designed indices. We all know finance is complex and The Index Standard has a clear ratings system and uses approachable language to demystify this complexity. Visit theindexstandard.com for more information.

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Episode Transcript

1
00:00:02,035 –> 00:00:02,917
[paul_tyler]: this is paul tyler

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[ramsey_d_smith]: oh

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[paul_tyler]: and welcome to another episode of that
annuity show ramsey how are you

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00:00:08,835 –> 00:00:09,603
[ramsey_d_smith]: always good to be here

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[paul_tyler]: okay well

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[Tom Beauregard]: oh

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[paul_tyler]: we are we have a really interesting
episode that’s going to

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[Tom Beauregard]: yeah

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[paul_tyler]: cross a

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[Tom Beauregard]: oh

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[paul_tyler]: number

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[ramsey_d_smith]: ah

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[paul_tyler]: of interests and you know ramsey you’ve
been very well steeped in the long term

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[paul_tyler]: care environment you know another side of
our business we’ve been focused on mediccare advantage

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[paul_tyler]: mids up and today we have a
special

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[Tom Beauregard]: oh

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[paul_tyler]: co host laura dinan haber who is
runs our innovation program at nassau and we

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[paul_tyler]: really

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[ramsey_d_smith]: yeah

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[paul_tyler]: have talked much about this laura you
and i do another podcast space ifically on

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[paul_tyler]: innovation in the insurance space do you
want to just give a quick

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[Tom Beauregard]: yah

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[paul_tyler]: intruinterms of what you do and

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[Tom Beauregard]: yah

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[paul_tyler]: maybe just kind of set up the
talk about the event we held a cup

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[paul_tyler]: weeks ago in hartford connecticut

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[ramsey_d_smith]: oh

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[laura_dinan_haber]: absolutely

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[paul_tyler]: m

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[laura_dinan_haber]: thanks so much paul it’s great to
be

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[ramsey_d_smith]: ah

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[laura_dinan_haber]: back

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[Tom Beauregard]: okay

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[laura_dinan_haber]: on tas here it’s been a while
ramsey fabulous to see you as always

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[paul_tyler]: oh

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[laura_dinan_haber]: so innovation program manager for nassau re
imagined so within nassau financial group we have

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[laura_dinan_haber]: a insure tech and retire tech incubator
i am the proud program manager kind of

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[laura_dinan_haber]: working through and creating happy collisions if
you will giving people the opportunity to share

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[laura_dinan_haber]: their stories connecting them with the individual
s not only within hartford connecticut but the

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[laura_dinan_haber]: larger new england market and across the
world as well on june twenty second we

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[laura_dinan_haber]: hosted what we called the retired tech
form in our office within hartford and over

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[laura_dinan_haber]: one

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[Tom Beauregard]: oh

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[laura_dinan_haber]: and individuals paid us a visit both
virtually and in person for six panels and

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[laura_dinan_haber]: over twenty two we like to think
of thought leaders and chains makers

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[Tom Beauregard]: oh

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[laura_dinan_haber]: not only with the insurance space but
the retire ment space as well so really

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[paul_tyler]: m

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[laura_dinan_haber]: focusing in on you know retirement insurance
and how that mash up takes

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[Tom Beauregard]: yeah

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[laura_dinan_haber]: place and we called that retired tech
and tom was with us there that that

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[laura_dinan_haber]: afternoon along with his c so it
was really exciting day for us and i’m

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[laura_dinan_haber]: happy to be here today to dive
deeper into the conversation

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[paul_tyler]: yeah no it was great and large
just to kind of back up a little

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[paul_tyler]: bit i think we had a lot
of former guests of that annuity show either

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[paul_tyler]: in the audience or on panels or
leaving panels cessions i mean right i would

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[paul_tyler]: say

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[Tom Beauregard]: oh

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[paul_tyler]: i think we had maybe twenty people
have been on the show at least

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[laura_dinan_haber]: yeah at least twenty twenty people across
to and re imagine podcast actually snapped a

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[laura_dinan_haber]: picture that i’ll throw up on social
media

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[Tom Beauregard]: ah

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[laura_dinan_haber]: later on today

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[paul_tyler]: m

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[laura_dinan_haber]: but it was amazing to see the
hands raised in the crowd as we grow

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[laura_dinan_haber]: multiple unity s but that annuity show
community is definitely something that we like to

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[laura_dinan_haber]: see flourish out there

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[paul_tyler]: well well today show is the result
of one of those happy collisions

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[Tom Beauregard]: ah

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[paul_tyler]: tom borrow guard who is the founder

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[Tom Beauregard]: oh

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[paul_tyler]: and c e o of h c
g secure is on with us and you

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[paul_tyler]: know tom welcome

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[Tom Beauregard]: thank you it’s great to be here
great to see everybody again

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[paul_tyler]: well time can you just

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[Tom Beauregard]: yeah

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[paul_tyler]: before we sort of dive in can
you tell us what is h c g

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[paul_tyler]: secure what do you do

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[Tom Beauregard]: sure

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[paul_tyler]: and what problem are you trying to
solve here

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[Tom Beauregard]: yeah i would say our focus is
we are a development company creating insurance products

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[Tom Beauregard]: that are focused on a middle income
population that is retiring without long term care

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[Tom Beauregard]: i mean that’s that would be sort
of in a sentence how i would describe

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[Tom Beauregard]: the work that we’re doing the specific
kind of bride problem that we’re addressing is

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[Tom Beauregard]: that middle income retires come into retirement
without really thinking about long term care there’s

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[Tom Beauregard]: a mis perception amongst a large percentage
of people that medic care somehow cover long

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[Tom Beauregard]: term cure expenses seventy percent of us
will need long term care

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[paul_tyler]: m

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[Tom Beauregard]: before the end of our lives and
it’s it really it bankrupts people

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[paul_tyler]: yeah

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[Tom Beauregard]: late in life this issue and it
also creates kind of chaos for families as

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[Tom Beauregard]: folks and there eighties who suddenly find
themselves in a position where they don’t have

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[Tom Beauregard]: savings left they’ve gone through the spend
down process they need support with activities of

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[Tom Beauregard]: daily living um m and their adult
children have to step in and that kind

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[Tom Beauregard]: of disrupts their lives and their retirement
savings so that’s the you know very broadly

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[Tom Beauregard]: the market that we’re focused on

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[paul_tyler]: yeah yeah and and tell us maybe
tell us a little bit about your background

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[paul_tyler]: how do you how do you get
to the space

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[Tom Beauregard]: i mean kind of two parts to
this i was prior to founding h c

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[Tom Beauregard]: g i was the chief innovation officer
united health group and i held that position

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[Tom Beauregard]: for fifteen years um and basically i
ran research and development for both the insurance

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[Tom Beauregard]: side of the house united health care
but also the care services side of the

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[Tom Beauregard]: house optim um m a professional perspective
i left united with this model in mind

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[Tom Beauregard]: just because my team did get involved
with some of the long term care insurers

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[Tom Beauregard]: um m they were moving into sort
of insolvency and without getting over the detailed

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[Tom Beauregard]: we were basically trying to intervene help
the policy holder who had a an insurance

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[Tom Beauregard]: policy from a long term care insure
um with home assessments and help with home

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[Tom Beauregard]: modifications and the sort of the short
story is we are unable to engage because

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[Tom Beauregard]: what we learned through that process was
the people that have been pre funding long

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[Tom Beauregard]: term care policies were you know frankly
not willing to engage with the insure they

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[Tom Beauregard]: were worried that somehow

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[paul_tyler]: m

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[Tom Beauregard]: it had something to do with underwriting
or the stability of their policy um on

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[Tom Beauregard]: a personal level my parents both went
through a decline late in life and i

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[Tom Beauregard]: was thinking i’d be able to sort
this out as someone who really knew the

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[Tom Beauregard]: insurance markets and frankly it was chaos
you know understanding what medicure pays for what

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[Tom Beauregard]: it doesn’t try to make transition plans
for my parents

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[paul_tyler]: oh

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[Tom Beauregard]: without objective support really really difficult so
when i came out of united i started

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[Tom Beauregard]: to fix on this space and really
the problem for middle income families i mean

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[Tom Beauregard]: wealthy people can either sell fund or
they have long term care and a very

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[Tom Beauregard]: low income people medicated covers long term
care services so it’s that large population in

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[Tom Beauregard]: the middle that that need support with
new insurance solutions and frankly navigation

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[ramsey_d_smith]: so tom i had i had a
question but when is pardon me when is

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[ramsey_d_smith]: when is an appropriate time for folks
to start thinking about this

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[paul_tyler]: ah

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[ramsey_d_smith]: like at what age at what age
and somebody sort

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[Tom Beauregard]: oh

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[ramsey_d_smith]: of economically buy one of your policies

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[Tom Beauregard]: yeah

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[ramsey_d_smith]: and have something that

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[Tom Beauregard]: oh

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[ramsey_d_smith]: is sort of that will work

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[Tom Beauregard]: oh

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[ramsey_d_smith]: economically versus their retirement

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[Tom Beauregard]: you know i would say so the
obvious answer is that it’s all entry age

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[Tom Beauregard]: pricing it so both of our products
and we’ve got two products in forty eight

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[Tom Beauregard]: states

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[ramsey_d_smith]: eh

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[Tom Beauregard]: one is called home care secure what
it’s called home life secure um people can

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[Tom Beauregard]: buy as early as eighteen i have
absolutely no expectation that we’re going to see

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[Tom Beauregard]: young folks thinking about one term care
i think

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[ramsey_d_smith]: yeah

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[Tom Beauregard]: what we’re seeing is people are starting
to buy in their you know their contemplating

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[Tom Beauregard]: insurance their contemplating retirement he might have
had an experience or don’t be going through

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[Tom Beauregard]: an experience with their own parents where
they’re

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[paul_tyler]: oh

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[Tom Beauregard]: understanding how expensive this is what’s covered
what’s not covered so i think reasonably what

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[Tom Beauregard]: we can expect is that people between
the ages of fifty and seventy are kind

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[Tom Beauregard]: of the prime buyers for product for
product like this

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[paul_tyler]: yeah well

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[Tom Beauregard]: yeah

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[paul_tyler]: the demand is it’s been enormous for
long term care you know

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[Tom Beauregard]: oh

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[paul_tyler]: it has been forever

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[Tom Beauregard]: oh

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[paul_tyler]: it’s just what’s the price

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[Tom Beauregard]: yeah

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[paul_tyler]: and you know what happens that price

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[ramsey_d_smith]: kay

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[paul_tyler]: over a period of time same thing
with with you know medica everybody’s

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[Tom Beauregard]: right

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[paul_tyler]: got to get it lot of decisions
around well what do i get what’s included

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[paul_tyler]: what’s x or what’s free and how
long is it free um is this like

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[paul_tyler]: an entirely like new category product do
you have

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[Tom Beauregard]: yeah

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[paul_tyler]: a do you have any drew competitors
in the space

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[Tom Beauregard]: it is a new category

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[ramsey_d_smith]: yeah

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[Tom Beauregard]: i mean there are hybrid products that
sit above these products that they’re more expensive

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[Tom Beauregard]: they’re medically under written i mean just
to be specific we’re offering coverage up to

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[Tom Beauregard]: a thousand dollars

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[paul_tyler]: oh

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[Tom Beauregard]: he’s going to give someone

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[paul_tyler]: ah

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[Tom Beauregard]: a reasonable level of insurance

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[ramsey_d_smith]: oh

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[Tom Beauregard]: whether it’s for at home care or
even for a short time institutional

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[ramsey_d_smith]: yea

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[Tom Beauregard]: m none

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[ramsey_d_smith]: oh

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[Tom Beauregard]: of these products are medically underwritten so
we’re targeting ninety percent acceptance

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[paul_tyler]: oh

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[Tom Beauregard]: rates and that’s what scene so if
you think about sort of the long term

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[Tom Beauregard]: care market traditional

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[paul_tyler]: oh

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[Tom Beauregard]: products or hybrid products

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[paul_tyler]: oh

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[Tom Beauregard]: they’re medically underwritten they’re much more expensive
and they tend to have higher rejection rates

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[paul_tyler]: oh

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[Tom Beauregard]: thirty to thirty five per cent because
they’re medically underwritten so really what we’re targeting

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[Tom Beauregard]: are products that are adequate have

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[ramsey_d_smith]: m

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[Tom Beauregard]: very high acceptance rates and are much
lower cost

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[paul_tyler]: m

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[Tom Beauregard]: for that middle income population and then
the other sort of important element s that

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[Tom Beauregard]: we’re integrating support model for the family
so long before they might need the insurance

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[Tom Beauregard]: or offering people help with things

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[paul_tyler]: oh

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[Tom Beauregard]: like advanced care plans with wills it
it’s really the percentage of people that don’t

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[Tom Beauregard]: have wills in this middle income class
is really high that creates havoc for families

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[Tom Beauregard]: later in life or offering support in
the care co ordination councilors so we’ve you

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[Tom Beauregard]: know we’ve we’ve basically

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[laura_dinan_haber]: yeah

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[Tom Beauregard]: surrounded

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[paul_tyler]: yeah

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[Tom Beauregard]: these insurance products with support services for
the family

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[laura_dinan_haber]: so tom how do you

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[Tom Beauregard]: okay

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[laura_dinan_haber]: how do you work to engage potential
customers you talked about you know that previously

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[laura_dinan_haber]: you dealt with being unable to engage
dealing with chaos when

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[Tom Beauregard]: yeah

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[laura_dinan_haber]: finding support when going through

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[ramsey_d_smith]: yeah

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[laura_dinan_haber]: your own personal journey how are you
working to engage potential customers with the

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[Tom Beauregard]: it’s

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[laura_dinan_haber]: products

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[Tom Beauregard]: a great question and i don’t have
data lore that would suggest that we can’t

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[Tom Beauregard]: so just to be really clear

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[laura_dinan_haber]: hm

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[Tom Beauregard]: when someone buys a home life secure
policy or home care secure policy as part

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[Tom Beauregard]: of the fulfillment package you know we’re
going out and telling people what they have

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[Tom Beauregard]: access to you can do this annual
assessment with us you can take ad advantage

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[Tom Beauregard]: of our care coordinators we can help
you with a will so we’re communicating with

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[Tom Beauregard]: members were still early on so i
can’t tell you that we are engaging and

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[Tom Beauregard]: that’s one of the hardest parts of
sort of any insurance model my hope is

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[Tom Beauregard]: when we’re doing this outreach early in
someone’s retirement you know someone is sixty five

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[Tom Beauregard]: has just bought this policy their healthy
will stand a better chance and i will

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[Tom Beauregard]: also say just from a marketing standpoint
the sort of the surrounding service models are

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[Tom Beauregard]: are helping brokers like it consumers like
it sort of they understand the value proposition

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[paul_tyler]: so are you selling direct consumer you
selling through agents are you

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[Tom Beauregard]: oh

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[paul_tyler]: selling through you know partners like a
r p

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[Tom Beauregard]: um we are selling through a large
network of of agents so we’ve got like

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[Tom Beauregard]: am wins is the largest wholesale brooker
in the country is selling this to affinity

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[Tom Beauregard]: groups throughout they’re selling it to retire
groups

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[paul_tyler]: yeah

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[Tom Beauregard]: we have

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[paul_tyler]: oh

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[Tom Beauregard]: and to be like l t c
i partners they’re the largest seller of longtrmcare

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[Tom Beauregard]: in the country we’ve got about a
dozen national very different similar employer platforms some

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[paul_tyler]: oh

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[Tom Beauregard]: are direct to consumer primary distribution right
now is through these very large brokerage

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[paul_tyler]: oh

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[Tom Beauregard]: entities we do have the capability to
sell direct to consumer um m so it’s

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[Tom Beauregard]: it’s affinity groups its employers its individuals
but right now it’s all through these these

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[Tom Beauregard]: large broker channels

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[laura_dinan_haber]: yeah and i can see the value
here i mean

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[Tom Beauregard]: ah

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[paul_tyler]: yeah

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[laura_dinan_haber]: just a few weeks ago we went
through and my husband’s grandfather passed away and

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[laura_dinan_haber]: where the power of attorney were working
through the documents working through all of the

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[laura_dinan_haber]: things you had and earlier in the
introduction and if someone handed me this piece

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[laura_dinan_haber]: of paper or this q

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[Tom Beauregard]: yeah

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00:12:07,042 –> 00:12:10,528
[laura_dinan_haber]: r code or this website as we’re
exiting the funeral home having

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[Tom Beauregard]: yeah

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00:12:10,588 –> 00:12:14,554
[laura_dinan_haber]: to set all this stuff up it
would be like yep the value is here

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[Tom Beauregard]: yeah

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[laura_dinan_haber]: absolutely we’re going to insure everyone around
us that we don’t need to go through

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[laura_dinan_haber]: this again

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[Tom Beauregard]: it creates chaos for families you know
and

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[laura_dinan_haber]: hm

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[Tom Beauregard]: the other thing that happens

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[paul_tyler]: m

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[Tom Beauregard]: and this is much more at

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[paul_tyler]: yeah

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[Tom Beauregard]: an emotional level but people don’t talk
about sort of ended life plants with the

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[Tom Beauregard]: with their adult children and and adult
children

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[paul_tyler]: m

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[Tom Beauregard]: don’t know sort of what their parents
financial circumstances are until it’s too late until

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[Tom Beauregard]: they’re

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[paul_tyler]: m

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[Tom Beauregard]: spent down

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[paul_tyler]: yeah

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[Tom Beauregard]: they need functional support and then these
kids who are in their fifties and sixties

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[Tom Beauregard]: need to step in we just just
did a survey with an outside foundation that

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[Tom Beauregard]: came in not for profit that’s focused
on the elder pair space and they went

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[Tom Beauregard]: to four hundred consumers who are in
this middle income category and the results were

280
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[Tom Beauregard]: stunning just how little people know about
sort of the risk of long term care

281
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[Tom Beauregard]: the expense of long term care what
medic care covers

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[paul_tyler]: m

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[Tom Beauregard]: what it doesn’t cover of the four
hundred people that were surveyed about a hundred

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[Tom Beauregard]: had had a care giver experience so
we were able to segment a little bit

285
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[Tom Beauregard]: and people that had a care giver

286
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[ramsey_d_smith]: yeah

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[Tom Beauregard]: experience m very different right they understood
that that it’s expensive that it’s not covered

288
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[Tom Beauregard]: that

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[ramsey_d_smith]: yeah

290
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[Tom Beauregard]: documentation and having plans in place are
critical so really kind of interesting

291
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[ramsey_d_smith]: yeah

292
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[Tom Beauregard]: results

293
00:13:36,113 –> 00:13:36,194
[Tom Beauregard]: ah

294
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[ramsey_d_smith]: oh yeah

295
00:13:38,195 –> 00:13:38,315
[paul_tyler]: and

296
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[Tom Beauregard]: yeah

297
00:13:40,338 –> 00:13:44,305
[paul_tyler]: a real basic question and i could
i can imagine the answer could be ending

298
00:13:44,345 –> 00:13:47,931
[paul_tyler]: with the above is this a life
insurance policy is this an annuity

299
00:13:47,828 –> 00:13:48,009
[Tom Beauregard]: yeah

300
00:13:48,091 –> 00:13:48,392
[paul_tyler]: or is it

301
00:13:48,360 –> 00:13:48,582
[Tom Beauregard]: yes

302
00:13:48,365 –> 00:13:48,606
[ramsey_d_smith]: oh

303
00:13:48,632 –> 00:13:49,774
[paul_tyler]: a health insurance policy

304
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[Tom Beauregard]: so home

305
00:13:50,095 –> 00:13:50,338
[paul_tyler]: oh

306
00:13:50,314 –> 00:13:54,833
[Tom Beauregard]: care secure an indemnity policy it’s a
you know it’s a user

307
00:13:54,695 –> 00:13:54,715
[ramsey_d_smith]: m

308
00:13:54,873 –> 00:14:03,910
[Tom Beauregard]: to lose at low cost no medical
underwriting indemnity policy home life secure is a

309
00:14:04,030 –> 00:14:09,800
[Tom Beauregard]: whole life policy it’s a hybrid with
accelerated benefits and that’s

310
00:14:09,725 –> 00:14:10,402
[ramsey_d_smith]: ye

311
00:14:09,835 –> 00:14:10,097
[paul_tyler]: yeah

312
00:14:09,960 –> 00:14:12,805
[Tom Beauregard]: you know we went through the interstate
compact on that we have coverage in forty

313
00:14:12,865 –> 00:14:18,283
[Tom Beauregard]: eight states we only launched home life
secure about a month ago so there are

314
00:14:18,323 –> 00:14:20,871
[Tom Beauregard]: two different products and the whole idea
and we have

315
00:14:21,025 –> 00:14:21,045
[paul_tyler]: m

316
00:14:21,051 –> 00:14:25,812
[Tom Beauregard]: others in development the whole ideas to
have products in a portfolio

317
00:14:25,355 –> 00:14:26,045
[ramsey_d_smith]: oh

318
00:14:26,193 –> 00:14:29,999
[Tom Beauregard]: that match this population that all have
the same set of sort of family support

319
00:14:30,080 –> 00:14:34,928
[Tom Beauregard]: services that meet different needs so if
someone wants a really low cost use it

320
00:14:34,988 –> 00:14:39,043
[Tom Beauregard]: or lose an indemnity pull c he
buy home care secure if they want a

321
00:14:39,103 –> 00:14:39,544
[Tom Beauregard]: policy

322
00:14:39,325 –> 00:14:40,090
[paul_tyler]: oh

323
00:14:39,604 –> 00:14:43,560
[Tom Beauregard]: that has a guaranteed pay out of
life insurance they buy home life secure you

324
00:14:43,620 –> 00:14:48,211
[Tom Beauregard]: could build and you guys know this
a model off an annuity with accelerated benefits

325
00:14:48,512 –> 00:14:53,585
[Tom Beauregard]: so there’s there’s a variety of different
product ideas in this space we have two

326
00:14:53,706 –> 00:14:54,408
[Tom Beauregard]: in market right now

327
00:14:58,746 –> 00:15:01,571
[ramsey_d_smith]: so you have an important services component
so there’s the financial

328
00:15:01,230 –> 00:15:01,250
[Tom Beauregard]: m

329
00:15:01,611 –> 00:15:06,599
[ramsey_d_smith]: component that services component how have you
how have you gone about building

330
00:15:06,524 –> 00:15:06,686
[Tom Beauregard]: yeah

331
00:15:06,640 –> 00:15:10,725
[ramsey_d_smith]: that out so we talk a little
bit about your distribution anne but you know

332
00:15:10,846 –> 00:15:11,306
[ramsey_d_smith]: all those

333
00:15:11,550 –> 00:15:12,075
[Tom Beauregard]: oh

334
00:15:11,886 –> 00:15:12,227
[ramsey_d_smith]: all those

335
00:15:12,265 –> 00:15:12,285
[paul_tyler]: m

336
00:15:12,327 –> 00:15:15,930
[ramsey_d_smith]: things that you’re bringing to bear that’s
a there’s there’s a lot there there’s a

337
00:15:15,950 –> 00:15:16,150
[ramsey_d_smith]: lot to

338
00:15:16,200 –> 00:15:16,482
[Tom Beauregard]: yeah

339
00:15:16,210 –> 00:15:20,554
[ramsey_d_smith]: provide how are you finding vendors or
partners to provide those services

340
00:15:20,630 –> 00:15:23,876
[Tom Beauregard]: it’s a great question i mean really
what we thought about and a lot of

341
00:15:23,896 –> 00:15:29,688
[Tom Beauregard]: this is personal experience it’s analogous to
what laura was touching on it’s if you’ve

342
00:15:29,728 –> 00:15:31,131
[Tom Beauregard]: had a personal experience in this

343
00:15:31,075 –> 00:15:31,356
[paul_tyler]: oh

344
00:15:31,251 –> 00:15:34,993
[Tom Beauregard]: area you sort of understand sort of
all the weak spots so

345
00:15:35,635 –> 00:15:35,939
[paul_tyler]: oh

346
00:15:36,030 –> 00:15:40,680
[Tom Beauregard]: we have picked categories that we think
are important things like care co ordination and

347
00:15:40,780 –> 00:15:46,121
[Tom Beauregard]: benefit advocacy helping people understand what is
medic air cover what doesn’t it cover if

348
00:15:46,161 –> 00:15:50,268
[Tom Beauregard]: you need to make a transition how
do you help a family with that transition

349
00:15:50,104 –> 00:15:50,125
[paul_tyler]: m

350
00:15:50,388 –> 00:15:54,615
[Tom Beauregard]: based on the condition of their loved
one so in that category you know we

351
00:15:54,695 –> 00:15:58,843
[Tom Beauregard]: go through a betting process by category
and we week at strategic partnership so in

352
00:15:58,883 –> 00:16:05,067
[Tom Beauregard]: that specific category we’re working with wealthy
um and wealthy has great content in this

353
00:16:05,127 –> 00:16:09,864
[Tom Beauregard]: space hey have care coordinators who are
masters in social work with a focus on

354
00:16:10,045 –> 00:16:15,472
[Tom Beauregard]: their care to help families make objective
decisions another category and i won’t i won’t

355
00:16:15,532 –> 00:16:18,838
[Tom Beauregard]: touch on all of them we’ve got
about eight strategic partners to answer your question

356
00:16:18,938 –> 00:16:24,007
[Tom Beauregard]: but in the whole area of documentation
and advanced care plans and wills working with

357
00:16:24,047 –> 00:16:29,095
[Tom Beauregard]: a company called trust and well we’ll
come in and help middle income people in

358
00:16:29,255 –> 00:16:33,242
[Tom Beauregard]: really simple ways pull a well together
pull and advance care plan together pull a

359
00:16:33,322 –> 00:16:41,533
[Tom Beauregard]: simple estate plan together if they’re at
that level work with an organization um called

360
00:16:41,674 –> 00:16:49,260
[Tom Beauregard]: liqu which is basically helping people with
social isolation with an a device and so

361
00:16:49,360 –> 00:16:52,743
[Tom Beauregard]: it’s it’s you know we have again
about half a dozen of these that

362
00:16:52,855 –> 00:16:52,875
[paul_tyler]: m

363
00:16:52,863 –> 00:16:56,247
[Tom Beauregard]: cover what we consider to be kind
of the full spectrum we’re always looking and

364
00:16:56,307 –> 00:17:01,364
[Tom Beauregard]: thinking about sort of other other problem
spots that we can fill and support families

365
00:17:01,445 –> 00:17:05,194
[Tom Beauregard]: with but right now we’ve got kind
of a suite of strategic partners that provide

366
00:17:05,234 –> 00:17:06,878
[Tom Beauregard]: these services to our insure members

367
00:17:09,805 –> 00:17:13,331
[paul_tyler]: yeah you know if you could only
two two sides to the

368
00:17:13,320 –> 00:17:14,010
[Tom Beauregard]: oh

369
00:17:13,371 –> 00:17:16,456
[paul_tyler]: question one is if you look through
the services that you’re providing and realize you

370
00:17:16,617 –> 00:17:20,824
[paul_tyler]: you’re sort of just kind of beginning
the journey and you could only offer one

371
00:17:21,044 –> 00:17:23,127
[paul_tyler]: of those services you offer which would
it be

372
00:17:23,101 –> 00:17:23,869
[Tom Beauregard]: it’s a great question

373
00:17:24,168 –> 00:17:24,749
[paul_tyler]: and also

374
00:17:24,840 –> 00:17:25,040
[Tom Beauregard]: oh

375
00:17:25,550 –> 00:17:29,185
[paul_tyler]: i think if you look through those
services what

376
00:17:29,199 –> 00:17:29,220
[Tom Beauregard]: m

377
00:17:29,225 –> 00:17:32,333
[paul_tyler]: didn’t make it on the list right
you would have thought would have made it

378
00:17:32,393 –> 00:17:35,280
[paul_tyler]: on there but you didn’t it was
too complicated too expensive

379
00:17:36,530 –> 00:17:42,292
[Tom Beauregard]: ah those are great questions i would
say that it’s the moment of crisis that’s

380
00:17:42,332 –> 00:17:47,591
[Tom Beauregard]: hardest for families so if i had
to pick a single a strategic partner it

381
00:17:47,631 –> 00:17:50,674
[Tom Beauregard]: would be wealthy right it’s that it’s
that organization

382
00:17:50,366 –> 00:17:50,407
[paul_tyler]: hm

383
00:17:50,714 –> 00:17:51,514
[Tom Beauregard]: that can come in and say

384
00:17:51,514 –> 00:17:51,535
[paul_tyler]: m

385
00:17:51,594 –> 00:17:52,275
[Tom Beauregard]: jes we don’t know what

386
00:17:52,264 –> 00:17:52,285
[paul_tyler]: m

387
00:17:52,335 –> 00:17:56,439
[Tom Beauregard]: to do you know dad seems to
be showing sort of cognitive decline

388
00:17:56,561 –> 00:17:56,602
[paul_tyler]: a

389
00:17:57,040 –> 00:18:00,967
[Tom Beauregard]: mom has pulmonary disease we’d love to
keep them in their home somebody that can

390
00:18:01,047 –> 00:18:08,398
[Tom Beauregard]: really help you in a deep way
assess what’s happening then offer really great objective

391
00:18:08,459 –> 00:18:13,387
[Tom Beauregard]: advice on how someone can continue to
age at home or can’t frankly so if

392
00:18:13,447 –> 00:18:17,094
[Tom Beauregard]: i were going to pick one partner
it’s that moment a crisis support that i

393
00:18:17,154 –> 00:18:24,750
[Tom Beauregard]: think is most important i think that
the categories that we’ve kind of avoided things

394
00:18:24,830 –> 00:18:28,656
[Tom Beauregard]: that you see in a lot of
just basic association plans that you know you

395
00:18:28,676 –> 00:18:32,913
[Tom Beauregard]: can make money on but they’re not
you know this counts on things like dental

396
00:18:33,715 –> 00:18:39,492
[Tom Beauregard]: and vision so what we’ve really been
fated on is how do you give someone

397
00:18:39,593 –> 00:18:43,645
[Tom Beauregard]: support with the elder care experience how
do you have a family support throughout the

398
00:18:43,685 –> 00:18:48,115
[Tom Beauregard]: course of their retirement um and we’ve
stayed away from sort of a lot of

399
00:18:48,375 –> 00:18:56,312
[Tom Beauregard]: what you typically see in in association
plans the basic discount programs that aren’t focused

400
00:18:56,433 –> 00:18:57,437
[Tom Beauregard]: on elder care issues

401
00:19:01,483 –> 00:19:07,083
[laura_dinan_haber]: now you mentioned liquththe a device that
helps with the social isolation when you are

402
00:19:07,163 –> 00:19:10,369
[laura_dinan_haber]: researching you know in your previous role
and then obviously as you’re working with your

403
00:19:10,389 –> 00:19:14,836
[laura_dinan_haber]: products now how much of that social
isolation do you think plays a role in

404
00:19:14,876 –> 00:19:17,080
[laura_dinan_haber]: the whole experience of aging whether it’s
for the

405
00:19:17,095 –> 00:19:17,337
[paul_tyler]: oh

406
00:19:17,160 –> 00:19:17,561
[laura_dinan_haber]: individual

407
00:19:17,281 –> 00:19:17,564
[Tom Beauregard]: huge

408
00:19:17,661 –> 00:19:19,006
[laura_dinan_haber]: or the family that surround um

409
00:19:18,951 –> 00:19:24,865
[Tom Beauregard]: it’s huge people are you know even
before covid it’s been a massive issue but

410
00:19:25,045 –> 00:19:29,833
[Tom Beauregard]: but people who are living at home
you know maybe widowed maybe not i mean

411
00:19:30,193 –> 00:19:34,287
[Tom Beauregard]: as soon as someone retires they start
to get isolated right and i’m not justin

412
00:19:34,389 –> 00:19:39,028
[Tom Beauregard]: at i was sixty five year old
who who’s really active needs an a device

413
00:19:39,168 –> 00:19:41,126
[Tom Beauregard]: but the process starts

414
00:19:41,125 –> 00:19:42,235
[paul_tyler]: oh

415
00:19:41,206 –> 00:19:48,193
[Tom Beauregard]: as soon as someone retires so the
idea of intervention in this space and it’s

416
00:19:48,253 –> 00:19:51,721
[Tom Beauregard]: it’s really amazing if you look at
loq they’ve done a lot of trial work

417
00:19:52,283 –> 00:19:57,102
[Tom Beauregard]: and again we’ve ended all these partners
very very carefully the level of engagement for

418
00:19:57,182 –> 00:19:58,925
[Tom Beauregard]: people is stunning

419
00:19:59,725 –> 00:20:00,010
[paul_tyler]: yes

420
00:19:59,887 –> 00:20:04,875
[Tom Beauregard]: know that a is amazing in that
it learns how to communicate over time with

421
00:20:04,935 –> 00:20:12,414
[Tom Beauregard]: an individual they like jokes they it’s
just hysterical to watch sort of the trial

422
00:20:12,474 –> 00:20:16,290
[Tom Beauregard]: work that they’ve done and the level
of engagement that they drive and

423
00:20:16,255 –> 00:20:17,335
[paul_tyler]: yeah

424
00:20:16,390 –> 00:20:20,966
[Tom Beauregard]: also their ability to measure sort of
how isolation declines even though it’s it’s a

425
00:20:21,027 –> 00:20:26,211
[Tom Beauregard]: robot it makes it a huge difference
but then you get into things are also

426
00:20:26,291 –> 00:20:33,020
[Tom Beauregard]: important beyond social isolation like meditation compliance
i mean the l q model will allow

427
00:20:33,100 –> 00:20:36,647
[Tom Beauregard]: a family to load it with with
data so they can remind

428
00:20:36,235 –> 00:20:36,497
[paul_tyler]: oh

429
00:20:36,867 –> 00:20:38,811
[Tom Beauregard]: mom or dad to take their pills
when they get up in

430
00:20:38,785 –> 00:20:39,745
[paul_tyler]: yeah

431
00:20:38,851 –> 00:20:44,020
[Tom Beauregard]: the morning it’s just there’s all kinds
of ways to use tools like that that

432
00:20:44,181 –> 00:20:46,148
[Tom Beauregard]: are really useful and appropriate

433
00:20:48,425 –> 00:20:51,430
[paul_tyler]: yeah i saw one company called it’s
called replica

434
00:20:51,450 –> 00:20:51,571
[Tom Beauregard]: yeah

435
00:20:52,131 –> 00:20:56,679
[paul_tyler]: where you can go in and buy
your a thing and then kind of start

436
00:20:56,759 –> 00:20:58,542
[paul_tyler]: talking to and it gets to know
you i mean how

437
00:20:59,060 –> 00:20:59,180
[Tom Beauregard]: yeah

438
00:20:59,704 –> 00:21:03,410
[paul_tyler]: and then you go sally look open
up your phone and see it like hanging

439
00:21:03,470 –> 00:21:05,794
[paul_tyler]: on the wall or something i don’t
know ramsey if that would be a

440
00:21:08,595 –> 00:21:08,676
[Tom Beauregard]: ah

441
00:21:10,201 –> 00:21:11,043
[paul_tyler]: there’s somewhere there’s a

442
00:21:11,180 –> 00:21:11,260
[Tom Beauregard]: ah

443
00:21:11,363 –> 00:21:13,687
[paul_tyler]: creep creepy line somewhere that were

444
00:21:13,769 –> 00:21:14,330
[Tom Beauregard]: ah ah

445
00:21:14,469 –> 00:21:19,116
[paul_tyler]: treading here but you what’s the fur
that i mean how much you know is

446
00:21:19,136 –> 00:21:24,686
[paul_tyler]: it going to be a real person
showing up in in place in these house

447
00:21:24,726 –> 00:21:28,692
[paul_tyler]: which i think just brings having the
same journey you did and laura went

448
00:21:28,655 –> 00:21:28,935
[ramsey_d_smith]: yah

449
00:21:28,752 –> 00:21:29,053
[paul_tyler]: through

450
00:21:29,070 –> 00:21:30,210
[Tom Beauregard]: oh

451
00:21:29,774 –> 00:21:32,098
[paul_tyler]: yiks having a real person into

452
00:21:32,010 –> 00:21:32,397
[Tom Beauregard]: oh

453
00:21:32,178 –> 00:21:33,741
[paul_tyler]: a house you don’t know you can’t

454
00:21:33,750 –> 00:21:34,032
[Tom Beauregard]: oh

455
00:21:34,094 –> 00:21:34,274
[ramsey_d_smith]: yah

456
00:21:34,702 –> 00:21:36,646
[paul_tyler]: can’t bet don’t know what they’re doing

457
00:21:37,350 –> 00:21:37,511
[Tom Beauregard]: yeah

458
00:21:38,789 –> 00:21:41,514
[paul_tyler]: yes i’d be nice but it’s hard
versus

459
00:21:41,795 –> 00:21:42,815
[ramsey_d_smith]: oh

460
00:21:42,235 –> 00:21:44,178
[paul_tyler]: in something italy i mean where

461
00:21:44,300 –> 00:21:45,222
[Tom Beauregard]: yeah i mean at the

462
00:21:45,240 –> 00:21:45,380
[paul_tyler]: where

463
00:21:45,262 –> 00:21:45,422
[Tom Beauregard]: end of

464
00:21:45,420 –> 00:21:45,520
[paul_tyler]: are

465
00:21:45,462 –> 00:21:45,543
[Tom Beauregard]: the

466
00:21:45,540 –> 00:21:45,600
[paul_tyler]: we

467
00:21:45,583 –> 00:21:45,703
[Tom Beauregard]: day

468
00:21:45,641 –> 00:21:45,841
[paul_tyler]: on that

469
00:21:45,783 –> 00:21:45,943
[Tom Beauregard]: you’re

470
00:21:45,901 –> 00:21:46,462
[paul_tyler]: continuum

471
00:21:46,023 –> 00:21:46,284
[Tom Beauregard]: never

472
00:21:46,682 –> 00:21:46,802
[paul_tyler]: like

473
00:21:46,765 –> 00:21:46,965
[Tom Beauregard]: i mean

474
00:21:46,883 –> 00:21:46,963
[paul_tyler]: how

475
00:21:47,005 –> 00:21:47,125
[Tom Beauregard]: when

476
00:21:47,063 –> 00:21:47,203
[paul_tyler]: long

477
00:21:47,185 –> 00:21:48,087
[Tom Beauregard]: people need custodio

478
00:21:48,025 –> 00:21:48,387
[paul_tyler]: yes

479
00:21:48,187 –> 00:21:51,973
[Tom Beauregard]: care they need custodio care right they
need they need aids to come in and

480
00:21:52,033 –> 00:21:58,306
[Tom Beauregard]: help them put meals together help them
with mobile the issues so there’s there’s no

481
00:21:58,426 –> 00:21:59,168
[Tom Beauregard]: replacement

482
00:21:58,994 –> 00:21:59,015
[ramsey_d_smith]: m

483
00:21:59,515 –> 00:21:59,776
[paul_tyler]: oh

484
00:21:59,890 –> 00:22:05,006
[Tom Beauregard]: opportunity i think there’s a tremendous sort
of supplemental opportunity and a lot of it

485
00:22:05,067 –> 00:22:12,264
[Tom Beauregard]: is just it’s communicating its alert its
medication compliance it’s you know most people when

486
00:22:12,284 –> 00:22:16,806
[Tom Beauregard]: they move into functional decline they don’t
need that much time initially i mean if

487
00:22:16,826 –> 00:22:18,250
[Tom Beauregard]: you look at sort of what happens

488
00:22:18,175 –> 00:22:18,395
[paul_tyler]: oh

489
00:22:18,330 –> 00:22:21,930
[Tom Beauregard]: to someone when they’re eighty and they
start to have functional decline they might just

490
00:22:21,970 –> 00:22:22,631
[Tom Beauregard]: need a couple hours

491
00:22:22,544 –> 00:22:22,684
[paul_tyler]: yeah

492
00:22:22,691 –> 00:22:23,191
[Tom Beauregard]: a day five

493
00:22:23,185 –> 00:22:23,425
[paul_tyler]: oh

494
00:22:23,231 –> 00:22:26,054
[Tom Beauregard]: days a week i mean that’s we
say that all the time as people make

495
00:22:26,095 –> 00:22:28,877
[Tom Beauregard]: their plans with wealthy it’s just mom
need somebody to come in in the morning

496
00:22:29,218 –> 00:22:35,001
[Tom Beauregard]: and summon to come in in the
evening typically when that happens it goes i

497
00:22:35,041 –> 00:22:35,141
[Tom Beauregard]: mean

498
00:22:35,044 –> 00:22:35,626
[paul_tyler]: yeah oh

499
00:22:35,201 –> 00:22:39,513
[Tom Beauregard]: the trajectories is never up so people
need more time over time but

500
00:22:39,685 –> 00:22:39,928
[paul_tyler]: oh

501
00:22:39,934 –> 00:22:40,455
[Tom Beauregard]: what models

502
00:22:40,445 –> 00:22:40,725
[ramsey_d_smith]: oh

503
00:22:40,496 –> 00:22:44,153
[Tom Beauregard]: like l q do they keep people
engaged

504
00:22:43,915 –> 00:22:44,115
[paul_tyler]: yeah

505
00:22:44,934 –> 00:22:50,071
[Tom Beauregard]: they focus on medication compliance and they’re
able to alert the family if in fact

506
00:22:50,092 –> 00:22:53,398
[Tom Beauregard]: there’s an event between those custodia care
visits and my example

507
00:22:54,145 –> 00:22:54,365
[paul_tyler]: oh

508
00:22:55,260 –> 00:22:59,226
[Tom Beauregard]: i don’t think they ultimately replace but
i think their terrific

509
00:22:59,305 –> 00:22:59,525
[paul_tyler]: yeah

510
00:22:59,326 –> 00:23:01,389
[Tom Beauregard]: supplements in many different ways

511
00:23:05,010 –> 00:23:05,270
[Tom Beauregard]: oh

512
00:23:05,105 –> 00:23:09,252
[ramsey_d_smith]: so i’ve got a question about sort
of your target audience so obviously there’s the

513
00:23:09,292 –> 00:23:10,493
[ramsey_d_smith]: people that are being cared for

514
00:23:11,305 –> 00:23:11,606
[paul_tyler]: oh

515
00:23:11,425 –> 00:23:14,750
[ramsey_d_smith]: but there’s also there the care givers

516
00:23:14,845 –> 00:23:15,125
[paul_tyler]: yeah

517
00:23:14,850 –> 00:23:18,376
[ramsey_d_smith]: so the younger folks in the family
that are that often sort of pick up

518
00:23:18,456 –> 00:23:22,243
[ramsey_d_smith]: the pick up the slack to help
out their parents like who do you think

519
00:23:22,283 –> 00:23:25,377
[ramsey_d_smith]: is your primary your primary target between
those

520
00:23:25,300 –> 00:23:25,400
[Tom Beauregard]: it’s

521
00:23:25,498 –> 00:23:25,618
[ramsey_d_smith]: two

522
00:23:25,600 –> 00:23:26,742
[Tom Beauregard]: it’s it’s the

523
00:23:26,845 –> 00:23:27,345
[paul_tyler]: yeah

524
00:23:27,363 –> 00:23:31,831
[Tom Beauregard]: it’s the care giver it’s it’s it’s
someone who’s heading into retirement it’s honestly it’s

525
00:23:31,931 –> 00:23:37,836
[Tom Beauregard]: long before you have functional decline it’s
someone who is sixty years old

526
00:23:37,874 –> 00:23:37,974
[paul_tyler]: yeah

527
00:23:38,810 –> 00:23:40,793
[Tom Beauregard]: they have you know a million dollars
in

528
00:23:40,765 –> 00:23:41,285
[paul_tyler]: yeah

529
00:23:40,913 –> 00:23:44,860
[Tom Beauregard]: total worth included in that is their
house which you know is paid for that

530
00:23:44,920 –> 00:23:48,145
[Tom Beauregard]: might be worth two hundred thousand so
in my example they have eight hundred thousand

531
00:23:48,185 –> 00:23:52,519
[Tom Beauregard]: dollars and liquid assets they’re feeling pretty
good about heading into retirement but they’ve got

532
00:23:52,559 –> 00:23:52,700
[Tom Beauregard]: this

533
00:23:52,604 –> 00:23:53,105
[paul_tyler]: yeah yeah

534
00:23:52,881 –> 00:23:58,420
[Tom Beauregard]: massive blind spot which is by the
time they’re eighty and they need support liquid

535
00:23:58,501 –> 00:24:02,710
[Tom Beauregard]: assets are gone they still have social
security they still have medic care they don’t

536
00:24:02,730 –> 00:24:04,393
[Tom Beauregard]: have any money left um

537
00:24:04,524 –> 00:24:05,046
[paul_tyler]: yeah yeah

538
00:24:04,994 –> 00:24:06,637
[Tom Beauregard]: that’s our target audience

539
00:24:06,533 –> 00:24:06,734
[paul_tyler]: yeah

540
00:24:06,697 –> 00:24:06,917
[Tom Beauregard]: is that

541
00:24:06,925 –> 00:24:07,105
[paul_tyler]: oh

542
00:24:07,057 –> 00:24:12,097
[Tom Beauregard]: sixty year old that sort of economic
condition heading towards retirement

543
00:24:18,695 –> 00:24:18,956
[ramsey_d_smith]: yeah

544
00:24:19,838 –> 00:24:21,200
[paul_tyler]: so so so you’re describing

545
00:24:21,110 –> 00:24:21,294
[Tom Beauregard]: yeah

546
00:24:21,461 –> 00:24:23,103
[paul_tyler]: a segment that is

547
00:24:23,134 –> 00:24:23,255
[ramsey_d_smith]: yeah

548
00:24:23,444 –> 00:24:27,230
[paul_tyler]: pretty much kind of who a lot
of the listeners are selling annuities or doing

549
00:24:27,310 –> 00:24:29,434
[paul_tyler]: retire plans for dat

550
00:24:29,726 –> 00:24:29,847
[ramsey_d_smith]: yeah

551
00:24:30,436 –> 00:24:36,546
[paul_tyler]: do you see this your product as
the start of the conversation that leads

552
00:24:36,360 –> 00:24:36,660
[Tom Beauregard]: yeah

553
00:24:36,646 –> 00:24:37,708
[paul_tyler]: to the

554
00:24:37,641 –> 00:24:37,782
[Tom Beauregard]: yeah

555
00:24:38,429 –> 00:24:39,090
[paul_tyler]: retirement planner

556
00:24:39,104 –> 00:24:39,204
[Tom Beauregard]: it’s

557
00:24:39,130 –> 00:24:39,310
[paul_tyler]: do you

558
00:24:39,244 –> 00:24:39,464
[Tom Beauregard]: a great

559
00:24:39,350 –> 00:24:39,611
[paul_tyler]: see that

560
00:24:39,524 –> 00:24:39,785
[Tom Beauregard]: question

561
00:24:39,651 –> 00:24:39,771
[paul_tyler]: this

562
00:24:39,665 –> 00:24:39,945
[ramsey_d_smith]: oh

563
00:24:39,825 –> 00:24:40,706
[Tom Beauregard]: pull i think it’s a

564
00:24:40,693 –> 00:24:40,833
[paul_tyler]: your

565
00:24:40,786 –> 00:24:41,207
[Tom Beauregard]: piece of

566
00:24:41,153 –> 00:24:41,354
[paul_tyler]: sort of

567
00:24:41,327 –> 00:24:41,908
[Tom Beauregard]: i don’t think it’s

568
00:24:41,955 –> 00:24:42,215
[paul_tyler]: piece

569
00:24:41,988 –> 00:24:42,349
[Tom Beauregard]: i don’t think

570
00:24:42,396 –> 00:24:43,157
[paul_tyler]: of that retirement

571
00:24:42,971 –> 00:24:43,575
[Tom Beauregard]: lead with sort

572
00:24:43,537 –> 00:24:43,638
[paul_tyler]: and

573
00:24:43,615 –> 00:24:43,675
[Tom Beauregard]: of

574
00:24:43,698 –> 00:24:43,818
[paul_tyler]: that

575
00:24:43,756 –> 00:24:43,917
[Tom Beauregard]: long

576
00:24:43,878 –> 00:24:43,978
[paul_tyler]: i’m

577
00:24:43,977 –> 00:24:46,240
[Tom Beauregard]: term care because people

578
00:24:46,462 –> 00:24:46,703
[paul_tyler]: you know

579
00:24:46,701 –> 00:24:46,942
[Tom Beauregard]: sort of

580
00:24:47,525 –> 00:24:47,807
[ramsey_d_smith]: yeah

581
00:24:47,563 –> 00:24:52,052
[Tom Beauregard]: most people don’t expect even though again
from an actuarial standpoint the vast majority of

582
00:24:52,132 –> 00:24:53,796
[Tom Beauregard]: us will need support but

583
00:24:53,755 –> 00:24:54,056
[paul_tyler]: oh

584
00:24:53,836 –> 00:24:55,118
[Tom Beauregard]: it’s i don’t think it’s i think

585
00:24:55,906 –> 00:24:55,987
[ramsey_d_smith]: ah

586
00:24:56,061 –> 00:24:59,056
[Tom Beauregard]: lead with income and you follow with
sort of long term

587
00:24:58,915 –> 00:24:59,215
[paul_tyler]: yeah

588
00:24:59,136 –> 00:24:59,337
[Tom Beauregard]: care

589
00:24:59,435 –> 00:24:59,696
[ramsey_d_smith]: yeah

590
00:24:59,999 –> 00:25:01,686
[Tom Beauregard]: and to me there’s to you to
your point

591
00:25:02,180 –> 00:25:02,400
[paul_tyler]: yeah

592
00:25:03,540 –> 00:25:09,232
[Tom Beauregard]: there’s tremendous correlation between the population that’s
buying annuities because they’re worried about running out

593
00:25:09,292 –> 00:25:10,056
[Tom Beauregard]: of income

594
00:25:10,714 –> 00:25:10,915
[paul_tyler]: yeah

595
00:25:10,831 –> 00:25:10,933
[Tom Beauregard]: they

596
00:25:10,915 –> 00:25:11,175
[paul_tyler]: oh

597
00:25:11,014 –> 00:25:15,485
[Tom Beauregard]: get old the population that would buy
a product like home life secure home care

598
00:25:15,565 –> 00:25:19,126
[Tom Beauregard]: secure and that’s that’s the exact same
demographic

599
00:25:19,675 –> 00:25:19,695
[paul_tyler]: m

600
00:25:24,935 –> 00:25:25,175
[ramsey_d_smith]: oh

601
00:25:32,610 –> 00:25:32,832
[Tom Beauregard]: oh

602
00:25:32,889 –> 00:25:32,989
[paul_tyler]: so

603
00:25:34,920 –> 00:25:35,503
[Tom Beauregard]: uh

604
00:25:35,574 –> 00:25:35,994
[paul_tyler]: it’s it’s

605
00:25:36,065 –> 00:25:36,267
[ramsey_d_smith]: oh

606
00:25:36,134 –> 00:25:36,515
[paul_tyler]: fun to make

607
00:25:36,429 –> 00:25:36,450
[Tom Beauregard]: h

608
00:25:36,615 –> 00:25:37,116
[paul_tyler]: do something

609
00:25:36,780 –> 00:25:37,740
[Tom Beauregard]: oh

610
00:25:37,316 –> 00:25:37,417
[paul_tyler]: new

611
00:25:37,383 –> 00:25:37,505
[ramsey_d_smith]: yeah

612
00:25:37,477 –> 00:25:38,999
[paul_tyler]: and original okay but you know

613
00:25:39,074 –> 00:25:39,488
[ramsey_d_smith]: m oh

614
00:25:39,200 –> 00:25:41,143
[paul_tyler]: if i use the record

615
00:25:41,015 –> 00:25:41,376
[ramsey_d_smith]: yeah

616
00:25:41,263 –> 00:25:42,826
[paul_tyler]: store analogy which it doesn’t even

617
00:25:42,731 –> 00:25:42,853
[Tom Beauregard]: yeah

618
00:25:42,906 –> 00:25:46,953
[paul_tyler]: like don’t ee really apply any more
but you walk in and say okay

619
00:25:46,972 –> 00:25:47,153
[ramsey_d_smith]: yeah

620
00:25:46,993 –> 00:25:47,293
[paul_tyler]: this is

621
00:25:48,660 –> 00:25:48,906
[Tom Beauregard]: uh

622
00:25:48,796 –> 00:25:49,457
[paul_tyler]: you know i’ll

623
00:25:49,419 –> 00:25:49,440
[Tom Beauregard]: h

624
00:25:49,477 –> 00:25:50,298
[paul_tyler]: make myself sound even

625
00:25:50,255 –> 00:25:50,536
[ramsey_d_smith]: yah

626
00:25:50,338 –> 00:25:55,127
[paul_tyler]: older than wait bob dillon was in
the the folk

627
00:25:55,214 –> 00:25:55,355
[ramsey_d_smith]: yah

628
00:25:56,290 –> 00:25:59,639
[paul_tyler]: o sic where do we put him
known starts to sing something new

629
00:26:00,090 –> 00:26:00,750
[Tom Beauregard]: oh

630
00:26:00,241 –> 00:26:04,599
[paul_tyler]: becase there’s no and i think about
the tools a lot of our agents used

631
00:26:04,640 –> 00:26:06,463
[paul_tyler]: for quotes right like well

632
00:26:07,560 –> 00:26:08,460
[Tom Beauregard]: yeah

633
00:26:07,945 –> 00:26:11,190
[paul_tyler]: go to life quotes and my life
illustration quote i’m gonna go to my annuity

634
00:26:11,760 –> 00:26:13,416
[Tom Beauregard]: yeah yeah

635
00:26:14,236 –> 00:26:14,756
[paul_tyler]: how do you break

636
00:26:14,740 –> 00:26:14,880
[Tom Beauregard]: yeah

637
00:26:14,837 –> 00:26:15,077
[paul_tyler]: into it

638
00:26:15,180 –> 00:26:15,260
[Tom Beauregard]: so

639
00:26:15,297 –> 00:26:15,758
[paul_tyler]: how do you break

640
00:26:15,640 –> 00:26:15,881
[Tom Beauregard]: i will

641
00:26:15,818 –> 00:26:15,938
[paul_tyler]: into

642
00:26:15,941 –> 00:26:16,061
[Tom Beauregard]: say

643
00:26:15,998 –> 00:26:16,339
[paul_tyler]: a space

644
00:26:16,121 –> 00:26:16,281
[Tom Beauregard]: this

645
00:26:16,379 –> 00:26:16,519
[paul_tyler]: like

646
00:26:16,381 –> 00:26:16,641
[Tom Beauregard]: i think

647
00:26:16,559 –> 00:26:16,700
[paul_tyler]: this

648
00:26:17,122 –> 00:26:17,182
[Tom Beauregard]: one

649
00:26:17,140 –> 00:26:17,241
[paul_tyler]: it’s

650
00:26:17,242 –> 00:26:17,762
[Tom Beauregard]: we are selling

651
00:26:17,581 –> 00:26:17,902
[paul_tyler]: it’s not

652
00:26:17,823 –> 00:26:18,243
[Tom Beauregard]: policies

653
00:26:17,982 –> 00:26:18,222
[paul_tyler]: quite

654
00:26:18,583 –> 00:26:19,404
[Tom Beauregard]: in forty eight states

655
00:26:19,284 –> 00:26:19,604
[paul_tyler]: there’s not

656
00:26:19,584 –> 00:26:19,644
[Tom Beauregard]: so

657
00:26:19,665 –> 00:26:19,685
[paul_tyler]: a

658
00:26:19,724 –> 00:26:19,945
[Tom Beauregard]: there’s

659
00:26:19,745 –> 00:26:20,286
[paul_tyler]: way to slap

660
00:26:20,205 –> 00:26:20,425
[Tom Beauregard]: there’s

661
00:26:20,346 –> 00:26:20,686
[paul_tyler]: this thing

662
00:26:20,565 –> 00:26:20,885
[Tom Beauregard]: evidence

663
00:26:20,786 –> 00:26:21,287
[paul_tyler]: in easily

664
00:26:20,965 –> 00:26:21,426
[Tom Beauregard]: of sales

665
00:26:21,488 –> 00:26:21,988
[paul_tyler]: into the system

666
00:26:22,127 –> 00:26:22,267
[Tom Beauregard]: were

667
00:26:22,289 –> 00:26:22,309
[paul_tyler]: a

668
00:26:22,327 –> 00:26:22,487
[Tom Beauregard]: still

669
00:26:22,369 –> 00:26:22,569
[paul_tyler]: lot of

670
00:26:22,547 –> 00:26:22,587
[Tom Beauregard]: in

671
00:26:22,609 –> 00:26:22,710
[paul_tyler]: the

672
00:26:22,667 –> 00:26:23,708
[Tom Beauregard]: start up mode but there’s

673
00:26:23,551 –> 00:26:23,972
[paul_tyler]: advisers

674
00:26:23,988 –> 00:26:24,048
[Tom Beauregard]: you

675
00:26:24,052 –> 00:26:24,152
[paul_tyler]: are

676
00:26:24,088 –> 00:26:24,369
[Tom Beauregard]: know this

677
00:26:24,252 –> 00:26:24,533
[paul_tyler]: using

678
00:26:24,429 –> 00:26:27,519
[Tom Beauregard]: isn’t um m there’s there’s evidence

679
00:26:27,385 –> 00:26:27,565
[paul_tyler]: oh

680
00:26:27,600 –> 00:26:33,273
[Tom Beauregard]: of sales i think more importantly it’s
the way these large rokerage

681
00:26:33,375 –> 00:26:33,435
[paul_tyler]: hm

682
00:26:33,414 –> 00:26:38,364
[Tom Beauregard]: chains have have reacted this space to
say there’s a need so if i look

683
00:26:38,465 –> 00:26:43,861
[Tom Beauregard]: at whether it’s a long term care
seller or a medic care seller or an

684
00:26:43,921 –> 00:26:45,305
[Tom Beauregard]: affinity group or employer

685
00:26:44,875 –> 00:26:45,175
[paul_tyler]: oh

686
00:26:45,405 –> 00:26:52,372
[Tom Beauregard]: platform all recognize this as a need
and i think the marketing of this is

687
00:26:52,432 –> 00:26:55,843
[Tom Beauregard]: to say hey this is it’s more
than insurance we’re going to provide you with

688
00:26:55,903 –> 00:26:56,704
[Tom Beauregard]: all kinds of planning

689
00:26:56,694 –> 00:26:56,875
[paul_tyler]: yeah

690
00:26:56,764 –> 00:27:01,543
[Tom Beauregard]: tools and support through the course of
your retirement if you need the insurance it’s

691
00:27:01,623 –> 00:27:06,186
[Tom Beauregard]: there for you and again it’s it’s
this this idea that seventy per cent of

692
00:27:06,266 –> 00:27:08,890
[Tom Beauregard]: us will um m and then

693
00:27:08,882 –> 00:27:09,082
[paul_tyler]: yeah

694
00:27:08,930 –> 00:27:10,094
[Tom Beauregard]: there are different flavors you know

695
00:27:10,224 –> 00:27:10,384
[paul_tyler]: yeah

696
00:27:10,255 –> 00:27:10,335
[Tom Beauregard]: go

697
00:27:10,405 –> 00:27:10,645
[paul_tyler]: yeah

698
00:27:10,415 –> 00:27:13,605
[Tom Beauregard]: back to if it’s just if you
want something that’s very inexpensive you buy the

699
00:27:13,645 –> 00:27:14,448
[Tom Beauregard]: indemnity product

700
00:27:14,893 –> 00:27:15,134
[laura_dinan_haber]: oh

701
00:27:15,070 –> 00:27:17,994
[Tom Beauregard]: if you want something people buy life
insurance all the time as they had

702
00:27:17,983 –> 00:27:18,243
[laura_dinan_haber]: oh

703
00:27:18,035 –> 00:27:19,277
[Tom Beauregard]: into retirement right they lose

704
00:27:19,225 –> 00:27:19,545
[paul_tyler]: oh

705
00:27:19,337 –> 00:27:23,984
[Tom Beauregard]: their group coverage they’re moving into retirement
so they buy some form of whole life

706
00:27:24,045 –> 00:27:24,465
[Tom Beauregard]: policy

707
00:27:24,232 –> 00:27:24,253
[laura_dinan_haber]: m

708
00:27:24,986 –> 00:27:25,126
[Tom Beauregard]: home

709
00:27:25,153 –> 00:27:25,376
[laura_dinan_haber]: oh

710
00:27:25,166 –> 00:27:29,574
[Tom Beauregard]: life secure is a whole life pot
see if you never tap the accelerated

711
00:27:29,605 –> 00:27:29,805
[paul_tyler]: oh

712
00:27:29,634 –> 00:27:34,922
[Tom Beauregard]: benefits then your estate gets a pay
up i don’t think it’s i don’t think

713
00:27:34,963 –> 00:27:40,753
[Tom Beauregard]: it’s a difficult sale given sort of
the platforms that both of these products are

714
00:27:40,874 –> 00:27:41,797
[Tom Beauregard]: on and the price points

715
00:27:41,605 –> 00:27:41,825
[paul_tyler]: yeah

716
00:27:51,964 –> 00:27:52,104
[paul_tyler]: yeah

717
00:27:53,841 –> 00:27:55,648
[Tom Beauregard]: i would say focus first on the
problem

718
00:27:55,585 –> 00:27:55,765
[paul_tyler]: oh

719
00:27:55,869 –> 00:28:05,285
[Tom Beauregard]: you really understand the population um and
that data points that exist to kind of

720
00:28:05,345 –> 00:28:06,748
[Tom Beauregard]: support your development efforts

721
00:28:06,583 –> 00:28:07,805
[paul_tyler]: ye oh

722
00:28:07,830 –> 00:28:13,607
[Tom Beauregard]: and then second yes for one but
just be terrifically careful and persistent as you

723
00:28:13,647 –> 00:28:13,968
[Tom Beauregard]: design

724
00:28:16,555 –> 00:28:16,775
[paul_tyler]: oh

725
00:28:27,065 –> 00:28:27,305
[ramsey_d_smith]: oh

726
00:28:28,474 –> 00:28:28,555
[paul_tyler]: ah

727
00:28:29,534 –> 00:28:29,675
[ramsey_d_smith]: yeah

728
00:28:32,962 –> 00:28:34,845
[paul_tyler]: ramsey what do you think i mean
we’ve had

729
00:28:34,680 –> 00:28:34,968
[Tom Beauregard]: oh

730
00:28:36,408 –> 00:28:38,211
[paul_tyler]: you actually a really interesting question

731
00:28:38,011 –> 00:28:38,173
[Tom Beauregard]: yeah

732
00:28:38,251 –> 00:28:41,436
[paul_tyler]: which is who’s this for use his
and went

733
00:28:41,416 –> 00:28:41,517
[ramsey_d_smith]: so

734
00:28:41,556 –> 00:28:41,576
[paul_tyler]: i

735
00:28:41,597 –> 00:28:41,637
[ramsey_d_smith]: i

736
00:28:41,616 –> 00:28:41,696
[paul_tyler]: mean

737
00:28:41,697 –> 00:28:41,857
[ramsey_d_smith]: think

738
00:28:41,736 –> 00:28:41,877
[paul_tyler]: you’re

739
00:28:41,917 –> 00:28:42,058
[ramsey_d_smith]: that

740
00:28:41,977 –> 00:28:43,680
[paul_tyler]: selling something far out in advance

741
00:28:43,640 –> 00:28:43,841
[ramsey_d_smith]: i think

742
00:28:43,800 –> 00:28:44,020
[paul_tyler]: i mean

743
00:28:43,901 –> 00:28:46,125
[ramsey_d_smith]: it’s i think it’s i think it’s
very important

744
00:28:45,843 –> 00:28:46,304
[paul_tyler]: how would you

745
00:28:46,285 –> 00:28:46,986
[ramsey_d_smith]: and one of the things

746
00:28:46,985 –> 00:28:47,125
[paul_tyler]: sort

747
00:28:47,066 –> 00:28:47,207
[ramsey_d_smith]: that

748
00:28:47,166 –> 00:28:47,206
[paul_tyler]: of

749
00:28:47,407 –> 00:28:47,828
[ramsey_d_smith]: that tom

750
00:28:47,726 –> 00:28:47,867
[paul_tyler]: this

751
00:28:47,968 –> 00:28:48,148
[ramsey_d_smith]: said

752
00:28:48,327 –> 00:28:48,448
[paul_tyler]: to

753
00:28:49,030 –> 00:28:50,573
[ramsey_d_smith]: early on of the discussion was that

754
00:28:50,411 –> 00:28:51,813
[paul_tyler]: landscape of retirement

755
00:28:51,765 –> 00:28:51,945
[ramsey_d_smith]: this

756
00:28:51,833 –> 00:28:52,074
[paul_tyler]: issues

757
00:28:52,025 –> 00:28:52,145
[ramsey_d_smith]: can

758
00:28:52,114 –> 00:28:52,214
[paul_tyler]: that

759
00:28:52,245 –> 00:28:52,346
[ramsey_d_smith]: be

760
00:28:52,334 –> 00:28:52,534
[paul_tyler]: envie

761
00:28:52,506 –> 00:28:52,526
[ramsey_d_smith]: a

762
00:28:52,835 –> 00:28:52,855
[paul_tyler]: i

763
00:28:52,867 –> 00:28:52,987
[ramsey_d_smith]: this

764
00:28:52,935 –> 00:28:53,095
[paul_tyler]: should

765
00:28:53,047 –> 00:28:53,287
[ramsey_d_smith]: can be

766
00:28:53,296 –> 00:28:53,456
[paul_tyler]: should

767
00:28:53,347 –> 00:28:53,808
[ramsey_d_smith]: an event

768
00:28:53,496 –> 00:28:54,297
[paul_tyler]: think through it was just

769
00:28:54,409 –> 00:28:55,731
[ramsey_d_smith]: that typically happens

770
00:28:55,680 –> 00:28:55,880
[paul_tyler]: top

771
00:28:55,811 –> 00:28:55,932
[ramsey_d_smith]: sort

772
00:28:55,960 –> 00:28:56,201
[paul_tyler]: middle

773
00:28:55,972 –> 00:28:56,933
[ramsey_d_smith]: of towards

774
00:28:57,002 –> 00:28:57,122
[paul_tyler]: and

775
00:28:57,294 –> 00:28:57,374
[ramsey_d_smith]: the

776
00:28:57,302 –> 00:28:57,523
[paul_tyler]: yeah

777
00:28:57,454 –> 00:29:03,665
[ramsey_d_smith]: end of life if things work out
as planned that can be you know meaningfully

778
00:29:03,745 –> 00:29:04,386
[ramsey_d_smith]: impactful and

779
00:29:04,555 –> 00:29:04,816
[paul_tyler]: oh

780
00:29:04,666 –> 00:29:08,312
[ramsey_d_smith]: and we talk about personal experiences so
i’ve had i’ve had relatives who

781
00:29:08,395 –> 00:29:08,655
[paul_tyler]: yeah

782
00:29:09,134 –> 00:29:16,547
[ramsey_d_smith]: saved deciduously their entire lives and then
and really through fairly linke retirement but then

783
00:29:16,608 –> 00:29:19,225
[ramsey_d_smith]: it only took a year or two
sort of

784
00:29:19,216 –> 00:29:19,376
[paul_tyler]: ah

785
00:29:19,586 –> 00:29:24,374
[ramsey_d_smith]: wipe out all their savings because they
ended up going into a

786
00:29:24,595 –> 00:29:24,835
[paul_tyler]: yeah

787
00:29:24,834 –> 00:29:29,622
[ramsey_d_smith]: into a nursing home so it’s a
it’s it’s it’s something that it’s something that’s

788
00:29:29,663 –> 00:29:34,128
[ramsey_d_smith]: not always entirely under so until you
actually you actually experience it so that’s why

789
00:29:34,168 –> 00:29:36,292
[ramsey_d_smith]: i think it is i think it’s
a topic that

790
00:29:36,374 –> 00:29:36,574
[paul_tyler]: yeah

791
00:29:36,432 –> 00:29:36,813
[ramsey_d_smith]: financial

792
00:29:36,595 –> 00:29:36,915
[paul_tyler]: yeah

793
00:29:36,873 –> 00:29:43,984
[ramsey_d_smith]: advisors should incorporate into their in their
discussion about the arc of the arc of

794
00:29:44,045 –> 00:29:47,791
[ramsey_d_smith]: retirement and then the other the other
piece i think this is important that’s why

795
00:29:47,851 –> 00:29:48,692
[ramsey_d_smith]: i asked the question earlier

796
00:29:48,474 –> 00:29:48,795
[paul_tyler]: yeah yeah

797
00:29:48,732 –> 00:29:53,060
[ramsey_d_smith]: time about who the who the targe
audience is i think it’s i think it’s

798
00:29:53,180 –> 00:29:54,622
[ramsey_d_smith]: it’s certainly it’s

799
00:29:54,524 –> 00:29:54,744
[paul_tyler]: yeah

800
00:29:54,642 –> 00:29:59,410
[ramsey_d_smith]: a combination like sometimes it’s it’s the
it’s the particular beneficiary often it’s family

801
00:29:59,724 –> 00:30:00,415
[paul_tyler]: yeah yeah

802
00:30:00,211 –> 00:30:03,898
[ramsey_d_smith]: they all play a role and it’s
it’s different from one family to the next

803
00:30:03,761 –> 00:30:03,921
[Tom Beauregard]: yeah

804
00:30:04,559 –> 00:30:05,280
[ramsey_d_smith]: we spent a lot of time

805
00:30:05,455 –> 00:30:05,755
[paul_tyler]: yeah

806
00:30:05,540 –> 00:30:07,524
[ramsey_d_smith]: on this show talking about the sandwich
generation we’ve

807
00:30:07,389 –> 00:30:07,530
[Tom Beauregard]: yeah

808
00:30:07,564 –> 00:30:10,028
[ramsey_d_smith]: had a few different guests come on
and talk about that

809
00:30:10,301 –> 00:30:11,010
[Tom Beauregard]: yeah

810
00:30:10,348 –> 00:30:11,911
[ramsey_d_smith]: and you know i think for

811
00:30:12,474 –> 00:30:12,595
[paul_tyler]: yeah

812
00:30:12,612 –> 00:30:15,597
[ramsey_d_smith]: you know for a lot of people
that are in that place where they’re

813
00:30:15,865 –> 00:30:16,165
[paul_tyler]: oh

814
00:30:16,078 –> 00:30:20,065
[ramsey_d_smith]: they’re still late in their career and
they’ve got kids and they’ve got parents that

815
00:30:20,250 –> 00:30:20,493
[Tom Beauregard]: oh

816
00:30:20,766 –> 00:30:22,288
[ramsey_d_smith]: this is an important is an important

817
00:30:22,170 –> 00:30:22,800
[Tom Beauregard]: ah

818
00:30:22,328 –> 00:30:26,215
[ramsey_d_smith]: consideration so now i think this is
i think this is a critical you

819
00:30:26,305 –> 00:30:26,565
[paul_tyler]: oh

820
00:30:26,817 –> 00:30:28,581
[ramsey_d_smith]: and and i think that

821
00:30:28,500 –> 00:30:28,683
[Tom Beauregard]: oh

822
00:30:29,845 –> 00:30:32,572
[ramsey_d_smith]: it’s worth while to focus from the
financial services industry

823
00:30:33,190 –> 00:30:35,296
[Tom Beauregard]: there’s there’s a data point out there
that says that

824
00:30:36,056 –> 00:30:36,377
[laura_dinan_haber]: tom what’s

825
00:30:36,595 –> 00:30:38,659
[paul_tyler]: oh

826
00:30:36,637 –> 00:30:36,938
[laura_dinan_haber]: one piece

827
00:30:36,815 –> 00:30:37,076
[ramsey_d_smith]: oh

828
00:30:36,978 –> 00:30:37,539
[laura_dinan_haber]: of advice you’d

829
00:30:37,511 –> 00:30:37,532
[Tom Beauregard]: a

830
00:30:37,599 –> 00:30:37,760
[laura_dinan_haber]: give

831
00:30:37,633 –> 00:30:39,880
[Tom Beauregard]: family member who’s over

832
00:30:39,785 –> 00:30:40,025
[laura_dinan_haber]: hard up

833
00:30:40,001 –> 00:30:40,161
[Tom Beauregard]: age

834
00:30:40,046 –> 00:30:40,226
[laura_dinan_haber]: where a

835
00:30:40,221 –> 00:30:40,461
[Tom Beauregard]: fifty

836
00:30:40,286 –> 00:30:40,547
[laura_dinan_haber]: founder

837
00:30:40,582 –> 00:30:41,483
[Tom Beauregard]: leaves the work force

838
00:30:41,290 –> 00:30:42,112
[laura_dinan_haber]: looking to break into a

839
00:30:42,104 –> 00:30:42,184
[Tom Beauregard]: to

840
00:30:42,152 –> 00:30:42,233
[laura_dinan_haber]: new

841
00:30:42,264 –> 00:30:42,425
[Tom Beauregard]: care

842
00:30:42,333 –> 00:30:42,614
[laura_dinan_haber]: space

843
00:30:42,505 –> 00:30:46,051
[Tom Beauregard]: for a loved one who’s now basically
in need and run out of money that

844
00:30:46,672 –> 00:30:47,173
[Tom Beauregard]: they forego

845
00:30:47,165 –> 00:30:47,267
[laura_dinan_haber]: ah

846
00:30:47,293 –> 00:30:47,453
[Tom Beauregard]: three

847
00:30:47,455 –> 00:30:47,796
[paul_tyler]: oh

848
00:30:47,473 –> 00:30:49,076
[Tom Beauregard]: hundred thousand dollars in

849
00:30:49,063 –> 00:30:49,283
[laura_dinan_haber]: oh

850
00:30:49,116 –> 00:30:53,900
[Tom Beauregard]: their own retirement so it becomes sort
of a psyche for families too and i’ll

851
00:30:53,940 –> 00:30:55,824
[Tom Beauregard]: also say right now to sort of
the

852
00:30:55,783 –> 00:30:56,165
[laura_dinan_haber]: oh

853
00:30:55,864 –> 00:30:57,266
[Tom Beauregard]: questions or

854
00:30:57,295 –> 00:30:57,675
[paul_tyler]: oh

855
00:30:57,406 –> 00:31:01,686
[Tom Beauregard]: average buyer right now is sixty i
mean that’s that’s what we’re seeing across both

856
00:31:01,786 –> 00:31:02,187
[Tom Beauregard]: products

857
00:31:01,903 –> 00:31:02,123
[laura_dinan_haber]: oh

858
00:31:02,889 –> 00:31:05,096
[Tom Beauregard]: and we’re seeing some outliers we’re seeing
folks in their

859
00:31:05,023 –> 00:31:05,043
[laura_dinan_haber]: m

860
00:31:05,156 –> 00:31:07,881
[Tom Beauregard]: early eighties by and i think our
youngest

861
00:31:07,645 –> 00:31:07,825
[paul_tyler]: yeah

862
00:31:07,921 –> 00:31:08,762
[Tom Beauregard]: bier is twenty three

863
00:31:09,523 –> 00:31:09,744
[laura_dinan_haber]: oh

864
00:31:09,823 –> 00:31:11,565
[Tom Beauregard]: but the average is sixty

865
00:31:11,653 –> 00:31:11,874
[laura_dinan_haber]: oh

866
00:31:11,765 –> 00:31:12,566
[Tom Beauregard]: that’s and that’s about

867
00:31:12,605 –> 00:31:12,825
[ramsey_d_smith]: yeah

868
00:31:12,606 –> 00:31:15,429
[Tom Beauregard]: the right time to really be moving
in on a product like this

869
00:31:16,663 –> 00:31:18,744
[laura_dinan_haber]: oh oh

870
00:31:19,004 –> 00:31:21,935
[ramsey_d_smith]: yeah oh

871
00:31:22,906 –> 00:31:24,388
[laura_dinan_haber]: yeah absolutely it’s one yeah of my
favorites

872
00:31:24,434 –> 00:31:24,455
[ramsey_d_smith]: m

873
00:31:24,909 –> 00:31:27,433
[laura_dinan_haber]: tom what oh is your why why
do you wake up every morning and do

874
00:31:27,493 –> 00:31:28,795
[laura_dinan_haber]: this where yo’re so passionate

875
00:31:29,760 –> 00:31:33,526
[Tom Beauregard]: it’s a great question i went i
had a personal experience i mean honestly what

876
00:31:33,567 –> 00:31:37,092
[Tom Beauregard]: i went through with my parents was
chaos and we had the economic means to

877
00:31:37,132 –> 00:31:37,433
[Tom Beauregard]: figure it

878
00:31:37,410 –> 00:31:37,591
[paul_tyler]: yeah

879
00:31:37,493 –> 00:31:39,196
[Tom Beauregard]: out but we made so many mistakes

880
00:31:39,014 –> 00:31:39,435
[paul_tyler]: i know you

881
00:31:39,436 –> 00:31:39,496
[Tom Beauregard]: we

882
00:31:39,455 –> 00:31:39,575
[paul_tyler]: will

883
00:31:39,597 –> 00:31:39,897
[Tom Beauregard]: probably

884
00:31:39,615 –> 00:31:40,678
[paul_tyler]: have a final question

885
00:31:40,518 –> 00:31:41,179
[Tom Beauregard]: institutional

886
00:31:40,758 –> 00:31:41,419
[paul_tyler]: here for

887
00:31:41,460 –> 00:31:41,622
[Tom Beauregard]: them

888
00:31:41,500 –> 00:31:41,740
[paul_tyler]: time

889
00:31:41,682 –> 00:31:44,115
[Tom Beauregard]: too quickly honestly and

890
00:31:44,095 –> 00:31:44,315
[paul_tyler]: oh

891
00:31:44,175 –> 00:31:48,613
[Tom Beauregard]: so i think about this all the
time i just think about families that don’t

892
00:31:48,673 –> 00:31:55,282
[Tom Beauregard]: have the resources that have to go
through this chaos without either the funding or

893
00:31:55,402 –> 00:31:56,345
[Tom Beauregard]: the objective

894
00:31:56,095 –> 00:31:56,435
[paul_tyler]: oh

895
00:31:56,425 –> 00:31:59,734
[Tom Beauregard]: support and so that’s to me it’s
just i think about the twenty six million

896
00:31:59,815 –> 00:32:05,413
[Tom Beauregard]: families that reside in the in the
middle right now a retirement that’s that’s what

897
00:32:05,453 –> 00:32:07,258
[Tom Beauregard]: drives me and i think it’s what
drives my entire team

898
00:32:08,014 –> 00:32:08,315
[paul_tyler]: ah oh

899
00:32:10,967 –> 00:32:13,371
[ramsey_d_smith]: so i just want to jump in
there really quickly and i think and i

900
00:32:13,411 –> 00:32:16,777
[ramsey_d_smith]: think something that is often under appreciated
is that even

901
00:32:17,275 –> 00:32:18,685
[paul_tyler]: yeah

902
00:32:17,598 –> 00:32:19,622
[ramsey_d_smith]: this is difficult even to the most
sophisticated

903
00:32:18,980 –> 00:32:19,710
[Tom Beauregard]: yeah

904
00:32:20,283 –> 00:32:21,525
[ramsey_d_smith]: among us right if you

905
00:32:21,565 –> 00:32:21,785
[paul_tyler]: oh

906
00:32:21,625 –> 00:32:27,455
[ramsey_d_smith]: are you are an insurance executive um
you know i would say you know financial

907
00:32:27,495 –> 00:32:30,179
[ramsey_d_smith]: advisors even people that are in this
profession it is

908
00:32:30,231 –> 00:32:30,292
[Tom Beauregard]: ah

909
00:32:30,260 –> 00:32:31,041
[ramsey_d_smith]: hard for them

910
00:32:31,184 –> 00:32:32,136
[paul_tyler]: h yeah

911
00:32:32,002 –> 00:32:32,123
[ramsey_d_smith]: so

912
00:32:32,517 –> 00:32:32,817
[paul_tyler]: all right

913
00:32:32,704 –> 00:32:33,585
[ramsey_d_smith]: i think body

914
00:32:33,559 –> 00:32:33,699
[paul_tyler]: yeah

915
00:32:33,906 –> 00:32:36,292
[ramsey_d_smith]: everybody every consumer should feel

916
00:32:36,175 –> 00:32:36,555
[paul_tyler]: yeah

917
00:32:36,673 –> 00:32:40,201
[ramsey_d_smith]: well within their rights to feel like
they need a hand on this because

918
00:32:40,220 –> 00:32:40,423
[Tom Beauregard]: hundred

919
00:32:40,241 –> 00:32:40,482
[ramsey_d_smith]: it’s hard

920
00:32:40,463 –> 00:32:40,726
[Tom Beauregard]: percent

921
00:32:40,522 –> 00:32:40,983
[ramsey_d_smith]: for everybody

922
00:32:41,252 –> 00:32:41,940
[Tom Beauregard]: yeah

923
00:32:48,014 –> 00:32:48,154
[paul_tyler]: yeah

924
00:32:59,974 –> 00:33:05,089
[paul_tyler]: yeah oh yeah

925
00:33:04,740 –> 00:33:04,760
[Tom Beauregard]: m

926
00:33:05,750 –> 00:33:08,034
[paul_tyler]: yeah and and you also

927
00:33:07,951 –> 00:33:08,133
[Tom Beauregard]: that’s

928
00:33:08,074 –> 00:33:08,314
[paul_tyler]: think it’s

929
00:33:08,254 –> 00:33:08,517
[Tom Beauregard]: that’s a

930
00:33:08,515 –> 00:33:08,535
[paul_tyler]: a

931
00:33:08,558 –> 00:33:08,720
[Tom Beauregard]: great

932
00:33:08,615 –> 00:33:08,815
[paul_tyler]: great

933
00:33:08,780 –> 00:33:09,003
[Tom Beauregard]: point

934
00:33:08,855 –> 00:33:10,779
[paul_tyler]: conversation for advisors

935
00:33:10,680 –> 00:33:11,622
[Tom Beauregard]: and the final point i’ll make

936
00:33:11,620 –> 00:33:11,720
[paul_tyler]: who

937
00:33:11,682 –> 00:33:12,162
[Tom Beauregard]: on this theme

938
00:33:12,121 –> 00:33:12,241
[paul_tyler]: are

939
00:33:12,223 –> 00:33:13,224
[Tom Beauregard]: is that nobody

940
00:33:13,162 –> 00:33:13,343
[paul_tyler]: maybe

941
00:33:13,264 –> 00:33:14,126
[Tom Beauregard]: wants to burden their kids

942
00:33:14,024 –> 00:33:14,304
[paul_tyler]: as

943
00:33:14,146 –> 00:33:14,727
[Tom Beauregard]: with this either

944
00:33:14,665 –> 00:33:15,026
[paul_tyler]: who are

945
00:33:15,067 –> 00:33:15,188
[Tom Beauregard]: it’s

946
00:33:15,106 –> 00:33:15,446
[paul_tyler]: looking

947
00:33:15,248 –> 00:33:15,388
[Tom Beauregard]: like

948
00:33:15,647 –> 00:33:15,727
[paul_tyler]: at

949
00:33:15,668 –> 00:33:15,748
[Tom Beauregard]: you

950
00:33:15,767 –> 00:33:15,887
[paul_tyler]: the

951
00:33:15,789 –> 00:33:15,889
[Tom Beauregard]: know

952
00:33:16,288 –> 00:33:16,608
[paul_tyler]: they’ve been

953
00:33:16,550 –> 00:33:16,690
[Tom Beauregard]: it’s

954
00:33:16,648 –> 00:33:17,009
[paul_tyler]: managing

955
00:33:16,770 –> 00:33:17,251
[Tom Beauregard]: but but

956
00:33:17,229 –> 00:33:17,309
[paul_tyler]: the

957
00:33:17,311 –> 00:33:17,411
[Tom Beauregard]: it’s

958
00:33:17,370 –> 00:33:17,530
[paul_tyler]: money

959
00:33:17,471 –> 00:33:18,072
[Tom Beauregard]: what happens

960
00:33:18,011 –> 00:33:18,311
[paul_tyler]: clint but

961
00:33:18,273 –> 00:33:18,353
[Tom Beauregard]: you

962
00:33:18,331 –> 00:33:18,511
[paul_tyler]: they’ve

963
00:33:18,393 –> 00:33:18,493
[Tom Beauregard]: know

964
00:33:18,551 –> 00:33:19,092
[paul_tyler]: got kids

965
00:33:19,154 –> 00:33:19,354
[Tom Beauregard]: people

966
00:33:19,333 –> 00:33:19,453
[paul_tyler]: who

967
00:33:19,435 –> 00:33:19,595
[Tom Beauregard]: don’t

968
00:33:19,553 –> 00:33:19,653
[paul_tyler]: are

969
00:33:19,635 –> 00:33:20,376
[Tom Beauregard]: communicate if

970
00:33:20,435 –> 00:33:20,655
[paul_tyler]: older

971
00:33:20,436 –> 00:33:20,797
[Tom Beauregard]: they don’t

972
00:33:20,735 –> 00:33:21,056
[paul_tyler]: kids

973
00:33:20,837 –> 00:33:21,558
[Tom Beauregard]: have their documents

974
00:33:21,597 –> 00:33:21,757
[paul_tyler]: this

975
00:33:21,638 –> 00:33:21,959
[Tom Beauregard]: together

976
00:33:21,797 –> 00:33:22,298
[paul_tyler]: may be a great

977
00:33:22,119 –> 00:33:22,239
[Tom Beauregard]: they

978
00:33:22,358 –> 00:33:22,478
[paul_tyler]: way

979
00:33:22,461 –> 00:33:22,542
[Tom Beauregard]: and

980
00:33:22,538 –> 00:33:22,598
[paul_tyler]: to

981
00:33:22,603 –> 00:33:22,745
[Tom Beauregard]: have

982
00:33:22,658 –> 00:33:22,779
[paul_tyler]: sort

983
00:33:22,826 –> 00:33:23,192
[Tom Beauregard]: funding

984
00:33:22,859 –> 00:33:23,981
[paul_tyler]: of create a relationship

985
00:33:23,990 –> 00:33:24,050
[Tom Beauregard]: and

986
00:33:24,041 –> 00:33:24,501
[paul_tyler]: with with

987
00:33:24,594 –> 00:33:24,694
[Tom Beauregard]: then

988
00:33:24,622 –> 00:33:24,702
[paul_tyler]: the

989
00:33:24,735 –> 00:33:25,016
[Tom Beauregard]: the kids

990
00:33:24,902 –> 00:33:25,082
[paul_tyler]: sort of

991
00:33:25,077 –> 00:33:25,238
[Tom Beauregard]: have

992
00:33:25,122 –> 00:33:25,383
[paul_tyler]: the next

993
00:33:25,298 –> 00:33:25,580
[Tom Beauregard]: to step

994
00:33:25,463 –> 00:33:25,984
[paul_tyler]: generation

995
00:33:25,701 –> 00:33:26,385
[Tom Beauregard]: in and that’s

996
00:33:26,725 –> 00:33:26,945
[paul_tyler]: keeps

997
00:33:27,301 –> 00:33:27,483
[Tom Beauregard]: that’s

998
00:33:27,346 –> 00:33:27,707
[paul_tyler]: assets

999
00:33:27,524 –> 00:33:28,353
[Tom Beauregard]: a that’s a tough ending

1000
00:33:28,428 –> 00:33:36,341
[paul_tyler]: under management with a with a team
so i think yeah yeah

1001
00:33:40,914 –> 00:33:40,994
[paul_tyler]: no

1002
00:33:44,070 –> 00:33:48,916
[Tom Beauregard]: i think it’s just h c g
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Product experts: Regulators need to end ‘gamesmanship’ of IUL illustrations

August 8, 2022 2022, Media, Sheryl Moore No comments

By John Hilton

Roughly 18 months after new regulations meant to tighten up indexed universal life illustrations took effect, insurers are using “gamesmanship” to make a mockery of new rules, say two leading insurance product experts.

Sheryl Moore of Moore Market Intelligence and Bobby Samuelson of The Life Product Review took the unusual step of co-authoring a comment letter on Actuarial Guideline 49-A. The pair are competitors in the product intelligence field.

The Indexed Universal Life Illustration Supgroup held a short call last week to restart its discussion on the problematic IUL illustrations. Comprised of National Association of Insurance Commissioners’ members, the subgroup called for comments to be submitted by today.

Regulatory action needed

The Moore/Samuelson letter did not hold back on the need for immediate regulatory action. Some IUL fixed interest bonuses can generate illustrated income more than 60% higher than a base index such as the S&P 500, they wrote.

“This is, in our view, entirely inconsistent with the intent of regulators in crafting AG 49-A,” the letter reads. “The gamesmanship currently occurring in illustrations is similar in effect and pervasiveness to the buy-up caps and multipliers that proliferated after AG 49 and resulted in AG 49-A.”

A spokesman for the American Council of Life Insurers said it would submit comments similar to the group’s February letter.

“AG 49-A was designed to target multipliers and similar products and appears to have been successful in doing so,” that letter reads. “If regulators believe the level of the illustrated values is unreasonable, we would ask regulators to provide clear objectives for a revised guideline.”

The Background

Consumer advocates have long had IUL illustrations in their sights. Illustrations showing double-digit returns are often unrealistic and harm retirement savers, critics say.

Adopted in 2015, AG 49 failed to bring IUL illustrations in line, so the National Association of Insurance Commissioners adopted the subgroup’s recommendations for AG 49-A late in 2020.

Insurers quickly got around AG 49 by offering IUL bonuses and multipliers. The IUL Illustration subgroup working on tightening AG 49 was given this mandate by the Life Actuarial Task Force: “designs with multipliers or other enhancements should not illustrate better than non-multiplier designs.”

In another key change, the IUL illustration crediting rate was set at 50 basis points higher than the policy loan rate. In AG 49, the crediting rate could be 100 basis points higher that the policy loan rate.

New efforts to game AG 49-A are more troublesome, the Moore/Samuelson letter explained. Rather than increasing the option budget in order to augment illustrated performance — what buy-up caps and multipliers did — life insurers are now using essentially the opposite strategy, the letter said.

Three tactics cited

The Moore/Samuelson letter identified three tactics insurers are applying to new IUL illustrations:

Using indices with lookback-based illustrated option profits far in excess of the BIA;
Reducing the actual option budget so that the lookback rate for the non-BIA account matches the BIA; and
Deploying the savings in a fixed interest bonus that is added to the illustrated rate and loan arbitrage.

The net effect is an illustration far better than one produced by, say, the S&P 500, but one that “in the real world, will very likely perform worse,” Moore/Samuelson wrote.

“Often, life insurers set these strategies as the default allocation in their illustration software in order to maximize their competitive positioning,” the letter reads. “This is not what was intended by AG 49-A – nor is it beneficial for consumers or even defensible under the arguments put forth previously by industry.

“In our view, this latest variant of Indexed UL illustration gamesmanship is more aggressive and puts clients in a worse position than the previous attempts.”

The IUL illustrations subgroup has not scheduled its next call yet.

Read the full article: https://insurancenewsnet.com/innarticle/product-experts-regulators-need-to-end-gamesmanship-of-iul-illustrations

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Next Stop: Multi-Account UMAs

August 8, 2022 2022, Harry Stout, Media No comments

By JACK SHARRY

As baseball legend Yogi Berra said, “It’s déjà vu all over again.”

My colleague Harry Bartle embraced separately managed accounts (SMAs) early on, as I did. He sold SMAs by positioning them as a customized, tax-efficient way to own comparable funds with the advantage of harvesting tax gains and losses.

“With a mutual fund, you get a tax bill,” Harry said, recalling what he told advisors. “With an SMA, you own the securities and can harvest losses!”

Today, we know there are multiple levers to push and pull to achieve tax alpha and better financial results. Tax harvesting is only one of those levers.

We’re also evolving financial advice from the practice of managing individual products to coordinated, multi-account management with the goal someday of household-level portfolio management.

An important way to move down that path is multi-account UMAs.

Multi-Account UMAs: The Bridge To Household Management
As executive vice president of LifeYield, Harry works with the country’s largest financial firms. Here’s what he sees:

“Financial planning does a great job assessing clients’ investing timelines, goals and risk tolerance. From there, advisors increasingly look to implement models that suit their clients’ needs.

“Meanwhile, we know asset location is the best way to improve tax efficiency. And UMAs are the backbone for most advisors today.”

Harry suggests that firms implement an asset location API on top of their UMA platforms to amplify tax efficiency.

“Firms don’t have to rip out their ‘plumbing’ because an API call from their planning system is easy to implement,” Harry said.

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Ask An Advisor: Where Should I Stash Short-Term Savings?

August 8, 2022 2022, Dr. Preston Cherry, Media No comments

By: Preston Cherry, CFP®

When it comes to determining where to house your short-term savings, factors to consider include risk, access, goals and what will give you peace of mind.

These factors are going to determine where you store your cash. And ultimately, understanding your unique needs and preferences, specifically your goals, will bring calm and clarity to your decision.

A financial advisor can help you create a financial plan for retirement. Find a financial advisor today.

How to Evaluate Short-Term Savings Vehicles

Consider where to house your short-term savings.

There are several factors to consider when eyeing short-term funds.

Term and type. Short-term investment and savings should be easily converted to cash within three to 12 months (or less) without losing principal value. They may have the opportunity for a small risk-free gain.

Risk. You want funds to retain the value of principal or earn a risk-free return.

Yes, there is an opportunity for short-term gains across various investment opportunities. But if you must assume risk for these gains, you may absorb the shock of sudden loss. Given your short time horizon, it is best to avoid unnecessary risk.

Access. Ease of access contributes to your storage decision. Short-term events require liquidity and expediency. It shouldn’t take more than a few days to liquidate and transfer cash to your goal. Nimble access requires a flexible financial institution location.

Goal. Assigning a goal to your funds is an essential factor. A goal begins with a series of functional and emotional questions. These may include these:

What are these funds for?
What event, experience or expense am I preparing for?
What positive outcome do I want to experience?

The answers to these questions will bring a sense of serenity to your process and decision.

What Are Your Options for Short-Term Savings?

Consider these accounts for storing your short-term savings.

Banks and credit unions.

Banks and credit unions have several advantages. FDIC insurance covers $250,000 of bank deposits per individual, per bank and account ownership. Depending on the account ownership, you can have more than $250,000 of coverage at one bank.

Credit unions insure $250,000 per depositor through the National Credit Union Association. An FDIC overview and calculator are available here. An NCUA calculator is here.

You can spread the deposit amounts across multiple institutions if your funds are too high to meet the FDIC insurance range at one institution. That strategy, however, adds a layer of personal management complexity.

Insurance is not the only benefit banks and credit unions offer. Banks and credit unions offer liquidity and access.

Cash does not require liquidation. Cash is cash when held in a savings account, which provides the quickest form of access, liquidity and transferability. Banks and credit unions tend to offer robust online platforms with electronic capabilities. Brokerage options will give the same.

Larger banks and credit unions offer multiservice platforms that allow clients to efficiently use their funds and access expertise across divisions such as mortgage, loans, brokerages, trusts and banking. If you think you’ll need any of these services during a short-term time horizon, banks and credit unions may look more appealing.

A potential drawback is low interest rates on your funds. Several reputable and insured online banking platforms, however, offer attractive savings account interest rates.

Brokerage money market mutual fund account. The brokerage money market at your investment institution offers liquidity. Your cash is grouped with other savers’ cash in mutual funds that invest in short-term government securities that pay interest rates net of fees, similar to savings accounts.

Brokerage money market accounts are not insured and are regulated by the Securities and Exchange Commission (SEC). Another general plus for brokerage money markets is their liquidity and access. Cash is available the next day in your account and is easily electronically transferable to external accounts.

Brokerage stock market. The stock market giveth and taketh. For the market to “give” gains, investors must “give” the market time. That’s not the same thing as “timing” the market. This refers to “time in” the market.

For short-term goals, the market may not be your best bet. The time horizon may “taketh” quickly through a market shock where your principal value dramatically declines.

Comparatively, if the invested funds are for a long-term goal, there is time in the market for a principal amount to recover and compound.

Treasury I Bonds. Americans are experiencing inflationary times and feeling the higher prices in their grocery carts, gas tanks, wallets and lifestyles. One upside is Treasury I Bonds, which adjust their interest rate payout to changes in the Consumer Price Index-Urban (CPI-U).

When the inflation rate is high, the interest rate on I Bonds reflects the increase and is attractive. The current rate is around 9.62%, much higher than any savings account rate at a bank, credit union or brokerage.

There are caveats. You must purchase directly from the government at Treasurydirect.gov, you can buy up to $10,000 annually (an allowance of an additional $5,000 if paying with a tax refund) and you must hold the bond for 12 months.

These limitations do not fit with short-term goals that have a horizon of fewer than 12 months, are more significant than $10,000, and require liquidity and ease of user access. I Bonds are most useful when a person has $10,000 outside of an emergency fund, a short-term goal and the spare time to clip the inflation interest paid.

What to Do Next

Consider your needs, then review the savings vehicles described above to determine which one best meets your criteria.

The bottom line is that your needs are principal preservation, low-risk capacity and the ability to make a large purchase within 12 months. You also need liquid, accessible and transferrable funds.

Your secondary goals are to earn interest and achieve insurance protection. You may consider an online bank or credit union outside your primary institution if your funds exceed the FDIC insurance limits.

Tips for Growing and Protecting Your Assets

If you have questions specific to your investing and retirement situation, a financial advisor can help. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One type of FDIC-insured account is a certificate of deposit. Check out our list of the best CD rates in the country.

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7 Things To Know About Social Security and Retirement for 2022

August 8, 2022 2022, Media, Paul Tyler No comments

By Gabrielle Olya

Given that a recent GOBankingRates survey found that 23% of Americans have nothing saved for retirement, it’s clear that many will be relying on Social Security to fund their golden years. And even if you do have retirement savings, you’ll want to be strategic about taking your benefits in a way that’s optimal for you.

To help you best understand Social Security and clear up any misconceptions about the benefits system, GOBankingRates spoke with financial experts and asked them what they want everyone to know about Social Security. Here’s what they said.

You Shouldn’t Rely on Social Security To Fund Your Whole Retirement

If you’re expecting Social Security to fully fund your retirement, you could be in for a rude awakening. The average monthly benefit is $1,542.22 as of June 2022.

“Social Security today only covers a portion of the average American’s expected income needs in retirement,” said Henry Yoshida, CFP and CEO of Rocket Dollar, an investment platform that allows individual investors to use tax-advantaged funds for alternative investing.

If you’re in that 23% of Americans who have nothing saved, start saving ASAP so that you’ll be in better financial standing when you reach retirement age.

Take Our Poll: Do You Think You Will Be Able To Retire at Age 65?

Delaying Taking Your Benefits Can Pay Off

You can start to collect Social Security benefits at age 62, but it may pay off for you to wait.

“If you are able to delay taking Social Security after eligibility, you can significantly increase the income [compared to] that minimum amount at the earliest possible access date,” Yoshida said. “For example, if you take Social Security at 62 and your income is $2,364, if you can wait to access Social Security until age 70, the income is $4,194.”

However, Waiting Until Age 70 Isn’t Always the Best Option

It’s true that if you delay taking Social Security until age 70, the amount you receive will be larger than if you start receiving your benefits before, but this doesn’t mean this is always the best option.

“You need to evaluate how that decision impacts your asset balances over time,” said Emily Casey Rassam, senior financial planner at Archer Investment Management. “If you look at the complete picture, which includes a projection of your investment portfolio balance over time, it may make more sense for you to take Social Security earlier. Often, if you delay Social Security until age 70, you are drawing down assets significantly, and that can hurt your long-term asset trajectory. Like all financial decisions, a comprehensive financial plan can tell the whole story and help you make decisions with all of the relevant data organized.”

65 Isn’t the Full Retirement Age for Everyone

When deciding when to collect Social Security, it’s important to understand what you’ll receive at what age.

“Age 62 is the earliest you can take benefits. For every year an individual delays taking benefits beyond their full retirement age — which varies depending on when you were born — through age 70, the annual benefit increases by 8%,” said Richard Freeman, senior director and wealth advisor at Round Table Wealth Management. “Conversely, for every year an individual takes benefits earlier than their full retirement age, their annual benefit is decreased 8%.”

Freeman said that his clients often assume their full retirement age is 65, but this is not always the case. If you were born in 1943 or later, your full retirement age ranges from 66 to 67.

Find Out: Understanding Social Security Retirement Age and Why It Matters

Your Benefits Are Calculated Based on Your 35 Highest-Earning Years

It’s important to understand how the Social Security Administration calculates your benefit amount.

“The primary insurance amount — or amount you get based on your own record — is based on the worker’s highest 35 years of earnings,” said Herman “Tommy” Thompson, Jr., a certified financial planner with Innovative Financial Group in Atlanta. “Most people think it’s based on your last five years. I’ve been talking about Social Security for 18 years and every time I say this, someone is surprised!”

Your Spouse (or Former Spouse) Can Impact Your Benefit Amount

Thompson said it’s important to understand how benefits are calculated when you are the surviving spouse.

“When a spouse dies, the higher Social Security amount remains for the [surviving] spouse, assuming they were married for at least nine months,” he said. “Not half. Not both. The higher remains. Widows and widowers can claim as early as age 60.”

And if you are divorced, you may be able to claim your ex-spouse’s benefits.

“A divorcee can still claim on an ex-spouse’s record if: (1) The individual is at least 62, (2) they were married for at least 10 years, (3) the individual is currently unmarried and (4) the ex-spouse is receiving a benefit or has been divorced for at least two years,” Thompson said.

Social Security (Probably) Won’t Run Out

You’ve likely seen headlines about Social Security running out in 2035 — but this is a worst-case scenario and not something that should cause you to panic. However, you may need to adjust your retirement plans depending on how the gap in funding will be bridged.

“The death of Social Security has been greatly exaggerated,” said Paul Tyler of Nassau Financial Group in Hartford, Connecticut. “If Congress doesn’t add additional funds to the trust, payroll taxes on current workers will continue to support the program. However, the taxes would not fund 100% of the expected benefits. The gap could be closed by imposing means testing, deferring full retirement ages beyond 67 or increasing taxes on benefits. Any of these modifications would require many people to adjust their retirement plans.”

Read the full article: https://www.gobankingrates.com/retirement/social-security/social-security-retirement-things-everyone-should-know/

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Episode 159: Making Sense of Your Clients’ 401(k) Lifetime Illustration Statements With Jack Towarnicky

August 4, 2022 2022, Jack Towarnicky, Podcast, Retirement No comments

Your clients will probably receive a statement by the end of the month from their 401(k) provider that includes a Lifetime Income Illustration. What does the projection actually mean? If you aren’t certain, you are not alone. Jack Towarnicky, HR, Total Rewards, Employee Benefits Subject Matter Expert joins us to explain the assumptions and the gaps in the mandatory disclosure.

Links mentioned in the show:

https://www.linkedin.com/in/jack-towarnicky-5878787/

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Create a Financial Fallback Plan

Build a Network of Professional Advisors

Get Estate and Wealth-Transfer Plans in Place

Plan for Change

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What Is the Safe Withdrawal Rate Method?

How to Calculate a Safe Withdrawal Rate

Pros and Cons of the Safe Withdrawal Rate Strategy

What Retirement Withdrawal Rate Is Right For You?

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Episode Transcript

Regulatory action needed

The Background

Three tactics cited

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You Shouldn’t Rely on Social Security To Fund Your Whole Retirement

Delaying Taking Your Benefits Can Pay Off

However, Waiting Until Age 70 Isn’t Always the Best Option

65 Isn’t the Full Retirement Age for Everyone

Your Benefits Are Calculated Based on Your 35 Highest-Earning Years

Your Spouse (or Former Spouse) Can Impact Your Benefit Amount

Social Security (Probably) Won’t Run Out

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