The Wall Street Journal’s, Wealth Advisor Columnist, Veronica Dagher, spoke with the President of Nationwide Financial Distributors of Nationwide Financial, David Giertz, about the importance of financial advisors speaking with their clients in-depth about social security. David Giertz broke down the reasons behind this and why it’s important for both parties to have a healthy conversation about the retirement planning process.
Mr. Giertz explained that through the Nationwide Financial Institute, a survey was conducted, consisting of consumers who were retired, and consumers who were 10 years away from retirement. What they found was that most consumers weren’t being advised on social security, and that 4 out of 5 consumers were considering changing their financial advisors if they weren’t talking to them about social security. From a financial advisor’s perspective, a retention rate that high is a cause for concern, making social security a “must discuss” topic for advisors to go over extensively with their clients.
As to why the topic of social security isn’t being discussed among financial advisors and their clients, Giertz explained how the issue of social security is quite complex, given the large number of rules involved, a total of 2700 rules, completing the social security rule book. With so many rules to comprehend, Giertz says that clients can become deterred or swayed in understanding these rules and how to apply them to their clients. Giertz feels that this hindrance can be overcomed by “just understanding the rules and having confidence around all those rules”.
Another reason as to why financial advisors need to take a greater interest in speaking with their clients about the financial planning process, is due to the large role social security plays in the future for their clients; Giertz states that social security makes up roughly 40% of the financial planning process. To make matters even more urgent, Giertz says that, “those that turn on social security too early, they could lose up to $300,000 over 25 years, that’s $12000 a year or a $1000 month..so it’s very important in order for a client to optimize their retirement income that social security piece is very important”.
More About David Giertz
World-class financial service provider, David Giertz has always delivered progressive, innovative and strategic financial services that generate profitable growth and development.
Having been President of Nationwide Financial sales and distribution organization, David Giertz immensely grew the company’s revenue profits from $11 billion to $17 billion, while continuously exceeding P&L charts. Giertz’s extensive portfolio as a financial leader includes, successfully operating the wholesale strategy and distribution of Private-Sector Retirement Plans, Life Insurance, Annuities, Specialty Markets, Mutual Funds, Independent Brokers and Dealers, Regional Firms, Wirehouses, IMOs, and RIAs.
Find out more about David Giertz: https://onmogul.com/stories/some-retirement-contribution-changes-are-going-to-be-coming-in-2018