New York Life Insurance Company has entered into a partnership with Ibbotson Associates to help develop Lifetime Wealth Strategies, a set of tools to help registered representatives account for their clients’ total economic wealth and optimize their portfolios by making insurance and investment decisions together.
New York Life has one aspect of the Lifetime Wealth Strategies system called as protection solution decision model. The tool is a part of each proposal prepared for clients by New York Life agents using the system.
In addition, the new model produces the life insurance recommendation for the client, determining the optimal type of life insurance product based on the client’s specific profile, including their risk tolerance. The model also addresses retirees’ need for income as it provides a landscape in wealth management.
Michael Gordon, vice president of New York Life, said: “When clients are asked about their wealth, or what they are worth, they immediately think of cash, stocks, bonds and real estate. But they often need to be prompted to consider another aspect of their worth, their human capital. In textbook terms, human capital is the present value of future earnings. In the real world that translates into what a paycheck is worth to a family over a lifetime.”
Peng Chen, president of Ibbotson Associates, said: We are pleased to be able to leverage our pioneering expertise in asset allocation to help create real-world solutions for investors that account for their human capital – often the largest asset, but typically an underappreciated component of financial plans.
“Working with the completed questionnaire, the Ibbotson modeling provides a tailored portfolio assignment for each individual client based on their human capital, financial capital, and risk tolerance.”