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LIFE ● DISABILITY INCOME ● INVESTMENTS ● RETIREMENT ● EMPLOYEE BENEFITS
GUARDIANLIFE.COM
Taking American Families
from Concerned to Confident
Driving Successful Behaviors to Optimize Client
Outcomes by Understanding What’s on their Minds
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH GENERAL PUBLIC.
The Guardian Life Insurance Company of America, New York, NY. Material discussed is meant for general informational purposes only and is not to be
construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual
situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. 2016-24785 (Exp. 09/18).
2© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
What we do…
Educate. Motivate. Inspire
3© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
To Better Understand the Drivers
of Emotional and Financial
Well-Being of American Families.
The Guardian Study of Financial and
Emotional Confidence
4© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
3 Key Themes:
1. American families’ emotional and financial well-being
are inextricably linked
2. Clients’ behaviors and actions may not be setting them
up for success - and causes stress and a lack of
confidence to varying degrees across the population
3. There are specific, model behaviors that the most
confident and assertive Americans exhibit
What the Research Says
5© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Change client outcomes and
demonstrate you are the Trusted
Advisor:
Partnership: By asking the right
questions and listening carefully to
understand and “hear” their priorities
Educate: Build confidence in
their ability to make decisions with
you, and re-center their point-of-view
Ownership: Drive them to the
right solutions explaining why
Plan: Help them create a plan to
close those gaps and remain
confident in their approach
EDUCATION
PLAN
Our Theory
6© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
These five traits were most often
“considered absolutely essential”
in their advisor:
1. Is trustworthy
2. Has integrity
3. Is knowledgeable
4. Listens to me
5. Is experienced
Give me a little peace, love
and understanding
7© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Respondents report working with an average of 2 advisors, Intensity of satisfaction
matters: Pretty Good is Not Good Enough
6%
6%
6%
7%
5%
7%
8%
8%
37%
39%
41%
41%
43%
45%
45%
46%
56%
54%
53%
52%
52%
48%
47%
45%
Is trustworthy
Has integrity
Is knowledgeable
Listens to you
Is experienced
Is smart
Communicates effectively
Understands your overall financial position
Poor Only Fair Pretty Good Excellent
Q. How would you rate your main financial advisor on that?
Yet, barely half of advisors get top marks for
these critical traits
8© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
These Traits are More Important Than Ever!
9© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
You are: trustworthy
You have: integrity
You are: knowledgeable
You do: listen
You are: experienced
We Know Our Advisors Are These Things
Why are only half of advisors getting
“Excellent” scores?
10© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
So, what’s the
disconnect?
11© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Who did we survey?
Survey Methodology: Representative national survey of:
• 4,971 workers 18+ working full-time or part-time, never retired, with household
incomes of $50k or more.
• Weighted by age, gender, household income, ethnicity, and region to conform to
Census parameters, includes…
Guardian’s Average Client Profile: An oversample of 2,921 workers 18+
with household income $100k or more, similarly weighted
Conducted online December 28th, 2015 through January 22nd, 2016.
Let’s explore the research
12© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
They have a strong plan
Work with an advisor
High growth & protection
product ownership
High financial literacy
The right attitudes about
money
More positive, most
confident, & satisfied with
their lives
21%of working Americans are
“Confident and Assertive”
Meet Jim & Jane
13© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
They lack a strong plan
Hit or miss relationships with
advisors
Low growth & protection
product ownership
Low financial literacy
The wrong attitudes about
money
Most stressed, least confident,
& satisfied with their lives
26%of working Americans are
“Stressed and Struggling”
Meet Jim & Jane’s Friends
14© 2016 The Guardian Life Insurance Company of America. All rights reserved.
STRESSED BUT COPING
FEARFUL OF THE FUTURE
CONFIDENTAND ASSERTIVE
STRESSED AND STRUGGLING
Grouping Americans by similar attitudes about life and money, financial
decision-making, technology, sources of stress, and drivers of happiness.
% OF TOTAL RESPONDENTS: 26% 30% 34% 21%
ATTRIBUTES:Highest
Concentration Of Women
Highest Concentration
of Small Business Owners
Looking For Guaranteed Income in
Retirement
Oldest and Most Educated
Cohort
FINANCIAL AND EMOTIONAL CONFIDENCE (FEC) SCORE
4.7 6.4 6.3 8.2
SEGMENTS
4 Unique Segments We Discovered
15© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
● The Guardian Financial and Emotional Confidence (FEC) Score is a unique, proprietary
benchmark that leverages our research to create a standardized score which indicates
overall emotional and financial well-being.
● The score is based on responses to ten questions in the Guardian Study of the
Financial and Emotional Confidence covering a range of financial confidence, emotional
well-being and overall life satisfaction dimensions including perceived job security,
personal safety, work/life balance, overall confidence and satisfaction, financial
success, overall and financial accomplishment compared to respondents’ parents,
being ready for retirement financially and being on track to meet financial goals.
● The score thus ranges from zero to ten with ten representing a positive response to all
ten questions
● The mean score for all working Americans is 6.3
The Guardian Financial and Emotional
Confidence (FEC) Score
16© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Model the ideal behaviors of those on track to make small, meaningful changes
in the emotional and financial confidence of clients and prospects
Financial Success
Low
Stress
Let’s Help American Families Go From
Concerned to Confident
17© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
0
1
2
3
4
5
6
7
8
9
Very Comfortable Not Comfortable
Confident, ready for retirement
Do financial planning
Very satisfied with life overall
Feel confident
Very satisfied with advisor
Live within my means
Have financial plan
Own whole life insurance
Focued long term, not short
Keep expectations realistic
Understand mutual funds
Plan created with advisor
Correlates of Success between the Very
Comfortable and the Not Very Comfortable
18© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
EDUCATION
financial concept &
product
understanding
PLAN
• Live within their means
• Have some form of a written plan
with specific objectives
• Appropriate product
ownership across both
growth and protection
solution sets
• Work with an advisor
and seek the tools
they feel best assist
them to plan
The Most Confident and Assertive Americans are More Likely to:
The Model Behaviors Fall into
These Categories
19© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Let’s Dig a Little Deeper into the Emotional and
Financial Confidence of American Families
20© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
37% are NOT
satisfied with their lives
overall
37% are considering
delaying retirement
38% feel the need to
stay on top of breaking
news minute-to-minute
Americans are Stressed
21© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
More than 1 in 5
• Feel overwhelmed day-to-day
• Feel threatened by the possibility
of terrorism at home
• Are worked up by world
events
• Feel the pace of change is
not manageable
There is a New Normal
22© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Thinking about your life priorities, please allocate 100 points of importance across
the categories below assigning the most points to your highest priorities and the
fewest points to your lowest priorities.
As an advisor, you play a key role in the overall satisfaction of your clients’
lives… what are you doing to ensure you fulfill this hefty obligation?
Retiring with a secure/adequate income
Staying fit and healthy
Raising your children (if any) well
Having enough money to enjoy life
Having a great marriage
Being happy
6.1
6.4
7.1
7.4
8.0
10.0
What are Their Top Life Priorities?
23© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Top major financial priorities tend to align with what we can offer -
We are the only people that can provide certain guarantees
Please indicate below the extent to which each item is a priority for your household
What if We Zone in On Major
Financial Priorities?
7%
6%
10%
10%
18%
11%
18%
34%
42%
43%
46%
39%
45%
43%
59%
52%
47%
44%
44%
44%
43%
Having at least some guaranteed income apart from SocialSecurity in Retirement
Building Savings for any reason
Having a solid long-term plan for achieving your financialobjectives
Saving for routine expenses in retirement
Protecting your family financially if you die or are unable to work
Saving for unexpected expenses in retirement
Just keeping up with your monthly expenses
Not a Financial Priority Minor Financial Priority Major Financial Priority
24© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Only one third or less would agree these attitudes describe them “Very
accurately” when it comes to money:
33%
32%
25%
21%
19%
19%
16%
12%
Financially, I'm much more focused on the long termthan the short term
I make every effort to be sure my financial expectationsare realistic and achievable
I get more satisfaction from saving and investing extramoney than from spending it
I need a thoughtful blend of insurance and investmentsto be both safe and successful
I'm pretty good about setting up a long-term financialplan and sticking with it
Protection comes first-I buy insurance to protect myselfand my family then invest what's left
I have people in my life I trust to advise me on financialtopics
I'm willing to accept lower returns in order to avoidabove-average risks
However, Attitudes About Money are Misaligned
with their Priorities
25© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Base: own or are at least somewhat familiar with this product.
32%
27%
26%
25%
25%
24%
23%
23%
23%
23%
22%
20%
19%
19%
18%
Workplace retirement savings plan such as a 401(k)
Individual Retirement Accounts (IRAs) apart from Roth IRAs
Individual stocks and bonds
Mutual funds
Pensions
Roth IRAs
Term life insurance
Separately managed accounts
Disability insurance
529 College Savings plans
Whole life insurance
Business insurance such as key person insurance or…
Annuities
Universal life insurance
Variable universal life insurance
Only a third or fewer of workers assert a solid understanding of many common
financial products
Q. How well would you say you understand:
Financial Literacy is Not as High
as it Should Be
26© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Only half of workers with a financial plan say their plan includes clearly stated
financial objectives.
Please indicate below what your plan includes.
50%
47%
42%
41%
40%
35%
34%
34%
26%
Clearly stated financial objectives
Your planning time horizon
Life and disability insurance
An investment policy that describes the types ofinvestments with which you are comfortable
Designation of the beneficiaries of your estate
Estate and tax planning
An expression of your tolerance for risk
An investment policy that stipulates your assetallocation targets
Educational funding planning
Base: Has financial plan 37%
For the 37% that actually have a written financial
plan, many lack core elements of the plan
27© 2016 The Guardian Life Insurance Company of America. All rights reserved.
By Household Income $50k+
Product Ownership
Q. Please indicate which of the products below you or a member of your household own.
76%
53%
50%
47%
46%
46%
44%
41%
41%
33%
25%
25%
18%
14%
14%
Workplace retirement savings plan such as a 401(k)
Individual Retirement Accounts (IRAs) apart from Roth IRAs
Individual stocks and bonds
Mutual funds
Whole life insurance
Term life insurance
Separately managed accounts
Disability insurance
Pensions
Roth IRAs
Annuities
Universal life insurance
529 College Savings plans
Variable universal life insurance
Business insurance such as key person insurance or buy/sell…
Product Ownership is Not as High
as it Should Be
28© 2016 The Guardian Life Insurance Company of America. All rights reserved.
30%
27%
22%
22%
21%
21%
20%
20%
18%
Strategies for creating retirement income
Savings tips
Updates on changes in tax law
Estate planning
Budgeting and managing cash flow
Health care expense planning
Life insurance
When to start drawing Social Security
Annuities
Retirement income strategies and savings tips are by far the most important
areas for which workers look to advisors.
Q. In addition to investments, on which of the following areas would you
like your main financial advisor to provide guidance?
Base: have used a paid financial advisor (47%)
What Do Clients Want to Know?
29© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Respondents report working with an average of 2 advisors, Intensity of satisfaction
matters: Pretty Good is Not Good Enough
6%
6%
6%
7%
5%
7%
8%
8%
37%
39%
41%
41%
43%
45%
45%
46%
56%
54%
53%
52%
52%
48%
47%
45%
Is trustworthy
Has integrity
Is knowledgable
Listens to you
Is experienced
Is smart
Communicates effectively
Understands your overall financial position
Poor Only Fair Pretty Good Excellent
Q. How would you rate your main financial advisor on that?
Key Take-Away #1: A Lack of Emotional
Connection Exists
30© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Great Discovery: Turn Something Analytical into
Something Emotional
31© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Create the Vision:
1. Tell me about yourself and the people most
important to you
2. What’s your biggest concern?
3. If there were one thing you could do during the rest
of your life, what would it be?
4. Tell me about the goals you have for your children,
or others you provide for
5. Tell me what a perfect day in retirement looks like
Identify Their Behaviors, Attitudes and Perspectives:
6. Tell me about what keeps you up at night
7. What does risk mean to you?
8. Tell me what motivates you
9. Tell me about your greatest achievement
10. Tell me how you plan for life events
11. Tell me about what money means to you
12. Do you feel like you are a saver or a spender?
Why?
Let them talk… (they want to be understood):13. Do you find dealing with finances to be
overwhelming? Why?
14. Tell me about your biggest financial loss How did
you deal with it?
15. How would you feel about going without small
rewards in the short-term, for larger rewards in the
long-term?
Understand Their Current Landscape:
16. Do you consider yourself financially successful?
Why/why not?
17. Tell me about your financial plan – what’s in it?
18. Tell me about your relationship with your current
advisor(s)
19. What do you want most in your life right now?
20. Tell me, how you decide where to invest?
21. Tell me about what you own and why you own it
22. Tell me about how you feel about your financial
expectations, are they realistic?
22 Great Questions
32© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
Do you have an Education policy?1. Do you know your clients gaps – what questions are you asking during discovery?
– Attitudes about money?
– Product understanding?
– Basic financial concepts?
– Financial Literacy Quiz?
– LBS Investment Room
2. Ongoing Client & Prospect Seminar Strategy
– Frequency?
– Topics (Social Security?)
– Registration Strategy?
3. Content Sharing Strategy
– Frequency?
– Topics (Monthly Market Commentaries?)
– Distribution Methods: Social? Newsletter?
Key Take-Away #2: Education is Critical
33© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
What did you learn
today that you would
apply in your business
tomorrow?
What do you think?
34© 2016 The Guardian Life Insurance Company of America. All rights reserved.
Interactive digital experience
FEC assessment/quiz
Interactive data
Client Seminar Strategy
Whitepaper
FR Workbook
Consumer Brochure on Model Behaviors
Infographics and Articles on key themes
Infostat series
Full Executive Summary
Coming Soon: Resources to Activate
Research & Start Conversations
35© 2016 The Guardian Life Insurance Company of America. All rights reserved.
For Financial Professional Use Only.
1. Identify 3 clients and/or prospects you are looking to
deepen a relationship with
2. Pick 3 of the 22 questions and try asking them
during your next client meeting (annual review?)
3. Email and let us know how it worked:
[email protected] and [email protected]
School’s Back in Session:
Homework Anyone?