retirement advisor resource guide -...

FOR FINANCIAL ADVISORS AND INSTITUTIONAL USE ONLY. NOT FOR DISTRIBUTION TO THE PUBLIC.

At Nuveen Investments, we strive to empower our partners with the

knowledge and resources to build solid retirement plans.

Nuveens DCIO & Strategic Platforms team is committed to supporting

youthrough:

Specialized resources to help you

grow your retirement business

A Breadth of investment solutions to meet

the needs of plan sponsors and participants

Dedicated retirement specialists with an average

of over 20 years experience

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Nuveen DCIO and Strategic Platforms

Retirement Advisor Resource Guide


Enhancing the value of retirement plans to your business

The Economics of Plan Profitability

They say that when opportunity knocks you should answer

the door. But advisors with retirement plan expertise know that not all

opportunities are created equal and some may not be opportunities at all.

The most successful advisors define their target market based on certain

attributes. The advisor then uses a disciplined approach to pursuing and

retaining clients who fit the profile, and have the ability to deliver the

financial return the advisor has set for their book of retirement business.

Perhaps the most critical and yet most challenging step in this process is

forecasting a plans financialvalue.

Best Practices for Retirement Plan Advisors

In addition to coursework, 401(k)ollege provides various sales ideas, tools, articles and additional resources to support your practice such as:

Best Practices of Retirement Plan AdvisorsPlanadviser Survey

5 Plan Design Ideas to Turn Around an Unprofitable Plan

A Dozen Conversation Starters Using Form 5500

Creating Your Short Form Retirement Pitchbook

Building an Effective Client Advisory Board

Regulatory Update Quarterly Newsletter

Escaping the Margin Trap

The Auto Plan


401(k)ollege is a premier business development resource designed to support you in growing a healthy retirement plan practice.

Offering a wealth of educational opportunities and resources, 401(k)ollege provides:

Educational Workshops

Retirement and Investment Insights

Actionable Business Building Tools

Plan Sponsor and Participant Resources

Specialized Resources To Help You Grow Your Retirement Business

401(k)ollege Curriculum

Course Level 101 201 301Business Development Track

Pursuing the Retirement Plan Business

Developments in the Retirement PlanMarketplace

Elements of a Business Plan

Effectively Communicating Your Value

Preparing for the First Meeting

The Regulatory Landscape of Retirement Plans

Prospecting and Marketing Strategies

Elements of Team Leadership

Implementing an Effective Service Model*


Refining Your Business Model through Case Analysis

Investment Track

Bob Dolls Top 10 Economic Predictions Investment Vehicles* Target Date Alternatives

*In development

Plan Profit (k)alculator

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Less Restrictive Eligibility Immediate eligibility for certain types of contributions (e.g., salary

deferrals) may increase contributions

Eliminating an age requirement (e.g., age 21) may also be beneficial

Automatic Enrollment/Escalation May increase participation rates as high as 8090%

Ensure the percentage is sufficient, as this could create small average

balances if automatic deferral percentage is set too low

Stretching the Employer Match The match percentage sets the benchmark for participant deferrals

Consider alternate match arrangements to incent participant behaviors

(i.e. $0.50 on the dollar up to 10% vs dollar for dollar up to 5%)

Safe Harbor 401(k) May enable highly compensated employees to defer a larger amount

Reduces corrective distributions (i.e., reductions in plan account

balances) resulting from failed ADP and ACP tests

New Comparability Profit Sharing Contribution May increase the amount of profit sharing contributions by enabling

the plan sponsor to allocate a larger portion of the contribution to

themselves and to certain management staff

For additional business building ideas or information on Nuveens invest-ment strategies for retirement plans, visit us at nuveen.com/retirement or call your Nuveen Retirement Plan Consultant at 888.713.9105.

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When looking for opportunities

to turn around an unprofitable

plan, consider whether there

are actions you can take to

improve overall profitability

through plan design or advisor

support services. A few changes

in various plan features

could potentially enhance

both participation rates and

planbalances.

5 Plan Design Ideas to Turn Around an Unprofitable Plan


Nuveen Investments | 333 West Wacker Drive | Chicago, IL 60606 | 800.257.8787 | nuveen.com

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Q: Perhaps the most critical and yet the most challenging step in the plan evaluation process is forecasting the financial value to the advisors practice. Where do you even begin?

Hilbrant: We may be taking a contrarian position, but we start with evaluating whether the plan sponsor sees our firm as one that may bring real value and improvements to their existing condition. Does the plan sponsor seek to provide a high quality, properly functioning retirement plan? If so, we determine if we can charge the fees we require and if it is consistent with the work that we know will be involved.

De Feo: Stace offers some great points. Looking histori-cally at advisors in the retirement business, many had purely focused on plan/asset accumulation and didnt have a process for evaluating whether or not a client would be a good fit and if they could profitably service them. In this current environment of transparency and disclosure, it is critical to be prepared to have an open dialogue about the services and value you are going to bring to the plan and what it is going to cost to offer those services. Every advisor should know what their value proposition is for various plan segments they plan to service (i.e. number of participants, locations, etc.). And that can vary, but it is important to under-stand the costs associated with each service model offered.

Q: Do you currently utilize a quantitative process to analyze a plans profitability or is it more of a qualitative judgment?

DAiutolo: We use both. We try to arrive at an hourly rate that allows us to be profitable. To determine that, you have to assess all hours: prep time, travel time, call volume from the plan sponsor and plan participants, service time (quarterly, annually, etc.). To reasonably predict the hours, you need to uncover during the fact finding process how they expect to be serviced and how they interact with other vendors. The qualitative aspect boils down to whether we anticipate if we can generate an additional sale from this client, either directly or indirectly because they are willing to be a good reference. If they can introduce us to new prospects, be a willing refer-ence or be open to new business from us, those factors weigh heavily on our willingness to take on a client. At the end of the day, we want our clients to like us as much as we like them.

De Feo: You really do need to look at both aspects. Starting with a thorough quantitative process to identify the key metrics that impact plan profitability, the potential sources of plan revenue and the costs associated with the service model you intend to employ. You need to know what your bottom line is going into it so you can then adjust your model if needed. In addition to the hard dollar opportunities

Escaping the Margin Trap

Paul DAiutolo Vice President Retirement Plan ConsultantThe DAiutolo Institutional Consulting Team at UBS Financial Services2012 PLANADVISER Top 100 Retirement Plan Advisers

Michael De FeoManaging Director DCIO & Strategic PlatformsNuveen Investments

Stace HilbrantManaging Director401k Advisors LLC LPL Financial2012 PLANSPONSOR Retirement Plan Adviser of the Year

Anders SmithSenior Vice President National Sales Manager DCIO & Strategic PlatformsNuveen Investments

Moderated by Melanie Hoffman, Vice President, Nuveen Investments

Understanding the economics of profitability to enhance the value of your retirement plan businessAdvisors with retirement plan expertise know that not all opportunities are created equal. The most successful advisors define and profile characteristics of their profitable retirement plan clients, and then use a disciplined approach to pursuing and retaining clients who fit the profile and can deliver the expected return. To examine the economics of retirement plan profitability, our panel of industry veterans share their insights and experiences.

FOR FINANCIAL ADVISOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Why Develop a Pitchbook?

A short-form pitchbook can help introduce the value of an

advisors practice to prospective plan sponsor clients or key centers

of influence. Many retirement plan practices rely solely on verbally

articulatingcapabilities.

In constructing a pitchbook, remember to address the following:

Keep the pitchbook an appropriate length (12-16 pages) so as not to overload the audience with information that may be best delivered at a later point in the process

Try to present broad solutions rather than a detailed display and discussion of portfolio analysis, security selection or other specific issues pertaining to retire-ment plan management

Focus on the client experience that plan sponsors (and their participants) should expect in a relationship with an advisor or team

Nuveen Investments Short-Form Retirement Pitchbook has been developed for retirement advisors and is inspired by the highly regarded pitchbooks of select private banks and high net worth advisory teams. It is intended to be a tool that an advisor can use to illustrate the value that they will add to a plan sponsor relation-ship and the benefit that a plan sponsor would have from developing a relation-ship with the advisor.

The Pitchbook Model Guides and supports the introductory conversation between an advisor and prospective plan sponsors

Provides an effective overview of the practice in 10 to 15 minutes, including philosophy in terms of client benefits, team members, service outline, commu-nication commitment, client experience and firm profile

Begins the conversation rather than detailing how an advisor implements par-ticular services or strategies

Important Compliance NotesThere are several customizable pages that the advisor should personalize. Remember, the entire presentation must be reviewed and approved by your firms Compliance Department prior to use.

Background:

DCIO & Strategic Platforms

Introduce Your Value Proposition with a Short-Form Retirement Pitchbook

2014


Proposals Could Limit Retirement SavingsTwo proposals introduced during first quarter 2014 recom-mend significant changes to our current retirement savings opportunities.

Proposed Fiscal 2015 BudgetOn March 4, 2014, the President released his fiscal year 2015 budget proposal. While it stays within the $1.014 trillion limit on discretionary spending set by the bipartisan budget compromise reached in January, it includes an additional $56 billion dollar Opportunity, Growth and Security Initia-tive and has enough controversial provisions that Congress is unlikely to embrace it. One of these controversial retire-ment plan provisions is a repeat from last years budget pro-posal: a cap on individual retirement savings at $3 million. Many in the industry feel that the existing caps on annual contributions and compensation that are used to determine benefits are sufficient and that this proposal punishes those who take the necessary steps toward attaining financial se-curity in retirement. Other repeat retirement plan provisions included in this years budget proposal include:

Reducing the value of itemized deductions and other tax

preferences to a 28% rate, which would limit the value of

the deduction for retirement plan contributions for indi-

viduals in the three highest tax brackets, and Requiring businesses that do not offer a retirement plan

and that have more than 10 employees to adopt an auto-

matic IRA program.

Tax Reform ProposalOther recent activity on Capitol Hill affecting retirement plans includes a discussion draft bill proposing comprehensive tax reform. The Tax Reform Act of 2014, introduced by the House Ways and Means Committee Chairman Dave Camp (R-MI), includes revenue generating provisions that would limit some retirement savings tax incentives, including:

A 25% cap on the rate at which deductions and exclusions

reduce income tax liability (similar to the Presidents pro-

posed limitation), A 10-year freeze on cost-of-living increases for contribu-

tion limits, Mandatory Roth treatment of elective deferral contribu-

tions above $8,750, and Elimination of annual Traditional IRA contributions and

new SEP plans.

Brought to you by 401(k)ollege from Nuveen Investments in partnership

with the ERISA experts at Integrated Retirement. Integrated Retirements

deep retirement plan expertise and industry insights help financial

advisors monitor new developments and capitalize on the opportunities

presented by the changing retirement planlandscape.

1Q | 2014

Regulatory Update from 401(k)ollege

No Imminent Changes Ongoing Debate

Advisors should consider including legislative updates in their quarterly or annual meetings to help plan sponsors understand which retirement proposals covered in the mainstream media may impact their plans. Advisors may want to communicate to their clients that although there is almost no chance for significant tax reform in 2014 since this is a mid-term election year, some provisions of the tax reform discussion draft and the Presidents budget proposal could be included in future legislation.


As investors prepare for retirement, we believe its important to focus on diversification and risk/return assumptions. Nuveen Investments model emphasizes diverse and independent yet complementary investment styles and processes. Our specialized investment affiliates offer products across numerous asset classes and market caps that seek to deliver diversified sources of attractive, risk-adjusted returns for retirement focused investors. Together through our multi-affiliate investment approach, we are proud to offer a breadth of investment solutions, product pricing and flexibility designed to help meet the long-term needs of your plan sponsor and participant clients.

You can access our investments on nearly every major retirement platform.

Fund Highlights for Retirement Plans

Fund Ticker Class A Morningstar CategoryInception Date

Nuveen Dividend Value Fund FFEIX Large Value 12/18/92

Nuveen Santa Barbara Dividend Growth Fund NSBAX Large Blend 3/28/06

Nuveen Large Cap Growth Opportunities Fund FRGWX Large Growth 1/9/95

Nuveen Winslow Large-Cap Growth Fund NWCAX Large Growth 5/15/09

Nuveen Mid Cap Growth Opportunities Fund FRSLX Mid-Cap Growth 1/9/95

Nuveen NWQ Small-Cap Value Fund NSCAX Small Blend 12/8/04

Nuveen International Growth Fund NBQAX Foreign Large Growth 4/24/09

Nuveen Inflation Protected Securities Fund FAIPX Inflation-Protected Bond 10/1/04

Nuveen High Income Bond Fund FJSIX High Yield Bond 8/30/01

Nuveen Symphony Credit Opportunities Fund NCOAX High Yield Bond 4/28/10

A WORD ON RISKMutual fund investing involves risk; principal loss is possible. There is no guarantee the Funds investment objectives will beachieved.Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, foreign securities risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Credit risk refers to an issuers ability to make interest and principal payments when due. High yield bonds and senior loans carry heightened credit risk and potential for default. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments. Stocks or equity securities are subject to market risk, common stock risk, and growth or value style investing risk. Dividends are not guaranteed. The guarantee provided by the U.S. government to treasury inflation protected securities (TIPS) relates only to the prompt payment of principal and interest and does not remove the market risks of investing in the fund shares. Foreign investments involve additional risks, including currency fluctuation, politi-cal and economic instability, lack of liquidity and differing legal and accounting standards. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk, and adverse economic develop-ments. A funds investment in inflation protected securities has tax consequences that may result in income distributions to shareholders. Foreign investments involve additional risks including currency fluctuation, political or economic instability, lack of liquidity, and differing legal or tax standards. These risks are magnified in emerging markets. An investment in small-, or mid-cap companies is subject to greater volatility.These and other risk considerations are described in each Funds prospectus.Before investing, please advise your clients to carefully consider fund investment objectives, risks, charges and ex-penses. For this and other information that should be read carefully, please request a prospectus or summary prospec-tus from your Nuveen Advisor Consultant at 800.752.8700 or visit nuveen.com.Funds distributed by Nuveen Securities, LLC, a subsidiary of Nuveen Investments, Inc.

A Breadth of Investment Strategies to Meet the Needs of Plan Sponsors and Participants2

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Nuveen Asset Management, LLC; Symphony Asset Management LLC; NWQ Investment Management Company, LLC; Santa Barbara Asset Management, LLC; Tradewinds Global Investors, LLC; Winslow Capital Management, LLC and Gresham Investment Management LLC are registered investment advisers and affiliates of Nuveen Investments, Inc.

For more information, visit us at nuveen.com/retirement or call your Nuveen Retirement Plan Consultant at 888.713.9105.

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Retirement Plan Consultants

Northeast Region

Anders SmithSenior Vice President

P: 312.917.6904 C: 312.257.1483 E: [email protected]

Central/Southeast Region

Paul ReddenVice President

C: 937.776.2531 E: [email protected]

Midwest Region

Neal SmithAssistant Vice President


Western Region

Brian BrummellVice President


Internal Retirement Plan Consultant

Jacklyn KingAssistant Vice President

P: 312.917.9798 P: 888.713.9105 E: [email protected]

Dedicated Retirement Specialists with an Average of Over 20 years Experience3


Nuveen Investments | 333 West Wacker Drive | Chicago, IL 60606 | 800.257.8787 | nuveen.com

Directors of Business Development

Michael De FeoManaging Director

P: 603.501.9614 E: [email protected]

Anders SmithSenior Vice President


Christopher FitzgeraldSenior Vice President


James FolwellSenior Vice President


retirement advisor resource guide -...

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