Fidelity Investments has introduced the Fidelity Retirement Income Evaluator, an online planning tool for managing retirement income plans and building a more efficient and profitable retirement business model, the company says. The tool is being offered by Fidelity Investments Institutional Services, Fidelity Registered Investment Advisor Group and National Financial, which collectively serve more than 135,000 advisors with $1.2 trillion in AUM.
According to Fidelity research, 77 percent of investors who build a retirement income plan with an advisor expressed a willingness to move all assets to one advisor and 95 percent said they would refer someone to the advisor.
Using default settings and estimates, advisors can develop an income plan in 15 minutes, though it should take at least 30 minutes when an individual client’s current and projected income, assets and expense information is accounted for. After such data is entered, the tool runs at least 250 hypothetical Monte Carlo simulations.
“The automatic integration of information or data means advisors can focus more time on the client and the needed plan and less time on inputting information,” says Kathleen Roche, vice president, National Financial.
This process results in a retirement-income plan report, which includes estimates of the likelihood that the client will successfully cover his or her retirement expenses and a year-by-year cash flow analysis. The cover page of the report can be customized, and the special information on topics like health care and debt can be added.
“These [topics] are meant to serve as discussion starters,” explains Ben Colvin, senior vice president, National Financial. “The interest in the tool is high,” Colvin adds. “Fourteen broker-dealers have signed up as of late September.”
Janet Levaux is the managing editor of Research; reach her at [email protected]