John J. Healy, CAE
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Consumers Value
Life Insurance
Although consumers are spending less on their auto and homeowner’s insurance, the financial product
that is least affected by their budget cuts in
this uncertain economy is life insurance,
according to a recent consumer survey
conducted by the consulting firm McKinsey & Company. This shows that even in a
down economy, consumers see the value of
keeping their life insurance intact, which is
good news for our industry.
Consumers also reported that they are
likely to increase their investments over
the next six months. Their plans include
increasing allotments to their savings
accounts, CDs, money markets, bonds,
stocks and mutual funds. This is also great
news for NAIFA member investors looking
to grow their business.
Are there still opportunities out there?
You bet. An eye-popping 47 percent of
consumers whose advisors proactively
contacted them during this downturn were
extremely likely to recommend those advisors to a close friend or family member for
their financial-planning needs.
Of those who had maintained a relationship with their financial advisor, 43 percent
believe that their advisor is “extremely able”
to address their retirement needs and they
are delegating more of their financial responsibilities to capable advisors.
We already know how important retirement planning is for our clients, especially
with the Baby Boomer generation rapidly
closing in on retirement. This report so-lidifies the opportunities in this market for
NAIFA members.
need an RRI of 100 in order to maintain their
standard of living at retirement. Households with an RRI of below 80 would need
to reduce spending on basic needs such as
housing, food and health care.
The report shows that the recent economic crisis impacted people at all income levels
($20,000 through $250,000) and age groups
(30-65 years of age), and that the majority rank well below the critical 80 ranking.
Again, this spells opportunities for trusted
advisors to help their clients.
NAIFA OFFICERS
President
Thomas D. Currey, CLU, ChFC, LUTCF
TDC Financial Services
tdcurrey@gmail.com
President-Elect
Terry K. Headley, LUTCF, LIC, FSS
Headley Financial Group
theadley@headleyfinancial.com
Secretary
Robert Miller, M.A., M.S.
Miller Pomerantz
rmdreamon@me.com
Treasurer
Randy L. Scritchfield, CFP, LUTCF
Montgomery Financial Group, Inc.
randy@randyscritchfield.com
Immediate Past President
Cliff F. Wilson, CLU, ChFC, CLF, LUTCF
Southeast Arizona Insurance Services, Ltd.
cwilson@sazagency.com
CEO
John J. Healy, CAE
jhealy@naifa.org
Fifty-six percent of
respondents said that
they are most likely to
turn to a financial advisor
for financial advice first.
(Source: McKinsey Consumer Survey)
This information clearly shows that
most consumers are not prepared for
retirement. Yet only 4 in 10 said that their
advisor had proactively contacted them
about the current financial crisis and how
it would impact them.
Consumers want to increase their
investments and see the value in life insurance. They are still not as prepared for their
retirement as they need to be. These are
all tremendous opportunities for NAIFA
members to grow their business and fill
the role of trusted advisors, helping their
clients to better position themselves for the
future. These are very positive signs that the
economy is turning around and that NAIFA’s
trusted advisor members have a valuable role
to play.
NAIFA TRUSTEES
Brenda D. Doty, LUTCF, RHU, CLU
The Doty Group
Stephen D. Estler, CLU, ChFC
Estler Financial
Kenneth R. Evans, CLU, ChFC, LUTCF,
CFP, AEP
Principal Financial Group
H. Larry Fortenberry, CPA, CLU, ChFC,
Executive Planning Group
Jules O. Gaudreau, Jr., ChFC, CIC
The Gaudreau Group, Inc.
Keith M. Gillies, CLU, ChFC, CFP
River Parishes Advisors Group, LLC
Roger S. McCullough, CLU
AXA Equitable
Juli McNeely, CFP, CLU, LUTCF
McNeely Financial Services, Inc.
John F. Nichols, CLU, DIA
Disability Resource Group, Inc.
Robert O. Smith, CLU, ChFC, J.D., LIC
Northwestern Mutual Financial Network
Russell A. Smith, CLU, ChFC, CFP, CSA
Torimax Financial Group, Inc.
NAIFA SERVICE CORPORATION
OFFICERS AND DIREC TOR
President
John J. Healy, CAE
Secretary
Thomas D. Currey, CLU, ChFC, LUTCF
TDC Financial Services
Treasurer
Randy L. Scritchfield, CFP, LUTCF
Montgomery Financial Group, Inc.
Director
Mark D. Johnson, CLU, ChFC, RHU
Johnson Insurance Consultants
Retirement readiness
The study also identified a Retirement Readiness Index, or RRI, which represents the
degree to which a household is prepared for
retirement, taking into account their Social
Security, defined benefits, defined contribution and other financial assets. Households
John J. Healy, CAE, is CEO of NAIFA. He
brings more than 25 years of experience and a
track record of leading organizational change
and creating customer value.
EDI TORIAL ADVISORY COUNCIL
Laurie A. Adams, CFP, CLU, LUTCF
Country Insurance & Financial Services
Brian Ashe, CLU
Brian Ashe and Associates, Ltd.
Frank Bearden, Ph.D., CLU, ChFC
Frank C. Bearden, Ph. D., Consulting
Greg Gagne, ChFC, LUTCF
Affinity Investment Group, LLC
Michael Lynch
MetLife
John Marshall Lee, CLU, CFP, RHU
People Insurance & Investments
John Nichols, CLU, DIA
Disability Resource Group Inc.
Roland Panneton, FLMI
NAIFA Government Relations
Ike Trotter, CLU, CASL, ChFC
Ike Trotter Agency, LLC
8 ADVISOR TODAY | November 2009
