Is employee financial stress
costing you profits?
How helping employees
plan for their future helps
your bottom line.

©20...
Denver Nowicz
About the Author

Denver Nowicz is an independent financial
services professional. Over the last 12
years, h...
Financial stress in the workplace
causes lower productivity and
higher absenteeism.

EMPLOYERS SPEAK:

78%
Say employees a...
The Business Cost of Poor
Productivity

“

I see it every day. We’ve had so
many employees whose homes
have gone into fore...
Financial Stress and
Productivity

“

Having spent my career helping
individuals and corporations
increase productivity, I...
One of the biggest financial stresses
is running out of money in retirement.
Percentage of Americans ages 44-49 who
select...
?

Why is running out of
money such a big fear?

Retirement used to look like this

Guaranteed Income Sources
provided the...
Today, government shortfalls, debt,
taxes and the “all in” stock market
philosophy have made retirement
income look like t...
“

Why I feel somewhat
insecure— the uncertainty
of the economy down the
road and whether or not
what I will be getting fr...
To Help Reduce Employee
Financial Stress...
One part of a solution is to add a guranteed lifetime
income option to your 40...
?

Why add a guaranteed
lifetime income option?

A guaranteed lifetime income (GLI) option
is simply an annuity that emplo...
A Reliable “Paycheck”
In Retirement

Employees
who want an
annuity in
their 401(k)
plan
Employers
who currently
offer annu...
!

Beware of the
Variable Annuity Trap

•	Many variable annuities offer lifetime income
but the real account values are st...
Summary
Financial stress at the workplace causes lower
productivity and higher absenteeism. One step
in reducing financial...
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Is employee financial stress costing your profits?

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Employee financial stress causes increased absenteeism, lower productivity and higher medical costs. Financial wellness programs at the workplace are easy to implement and can help business to increase profits.

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Transcript of "Is employee financial stress costing your profits?"

  1. 1. Is employee financial stress costing you profits? How helping employees plan for their future helps your bottom line. ©2013 Denver Nowicz All rights reserved
  2. 2. Denver Nowicz About the Author Denver Nowicz is an independent financial services professional. Over the last 12 years, he has successfully developed and implemented comprehensive, wealthbuilding retirement plans for individuals and businesses of all sizes. As the founder of Equity4Profit and Wealth For Life Financial Solutions, his dedication and personal attention have helped his clients achieve greater certainty and peace of mind by eliminating risk, reducing taxes, and achieving more predictable results. For more than five years he has hosted the “Get Wealthy Arizona” radio show featured throughout the state. Learn more about Denver by clicking this link: www.linkedin.com/in/denvernowicz
  3. 3. Financial stress in the workplace causes lower productivity and higher absenteeism. EMPLOYERS SPEAK: 78% Say employees are less productive while at work when they are woried about personal financial problems 58% Say that financial stress contributes to employee absences at their company
  4. 4. The Business Cost of Poor Productivity “ I see it every day. We’ve had so many employees whose homes have gone into foreclosure, their spouse was laid off, they’re sick. We’re seeing a lot of absenteeism surrounding those issues...” HR Professional (4,000 + employees) San Francisco, July 2010 Financial troubles can decrease productivity by as much as 20 hours per month. Cost to business: $15,000 per year per affected employee. Source: The Journal of Employee Assistance. 1st Quarter 2009. January 1, 2009.
  5. 5. Financial Stress and Productivity “ Having spent my career helping individuals and corporations increase productivity, I’ve become convinced that one of the greatest, unnoticed drains on individual productivity is the distraction that financial stress puts on people.” DR. STEVEN R. COVEY Author of “The Seven Habits of Highly Effective People”
  6. 6. One of the biggest financial stresses is running out of money in retirement. Percentage of Americans ages 44-49 who selected this as what they fear more: Outliving money in retirement 77% 23% Death
  7. 7. ? Why is running out of money such a big fear? Retirement used to look like this Guaranteed Income Sources provided the bulk of retirement income 80% - Social Security & Pensions Risk Money 20% - Investments could go up or down; provided for only a small portion of retirement needs
  8. 8. Today, government shortfalls, debt, taxes and the “all in” stock market philosophy have made retirement income look like this Guaranteed Income Sources 20% Provide only a small portion of retirement income Risk Money 80% The majority of retirement income comes from investments that are not guaranteed and could lose value
  9. 9. “ Why I feel somewhat insecure— the uncertainty of the economy down the road and whether or not what I will be getting from Social Security or retirement would be enough to cover the rise of expenses and the cost of living and that kind of thing.” —Older Boomer “ I was in great shape, and then all that [the recession] hit, and I took a nose dive on a lot of things—personally, professionally—a lot of things hit.” —Younger Boomer
  10. 10. To Help Reduce Employee Financial Stress... One part of a solution is to add a guranteed lifetime income option to your 401(k) or retirement plan Employees say that when it comes to achieving their financial goals they prefer: Gen Y Gen X Younger Boomers Older Boomers Guarantees that offer stable but somewhat lower returns. 81% 75% 74% 78% A higher degree of risk because the returns could be greater. 19% 25% 26% 22%
  11. 11. ? Why add a guaranteed lifetime income option? A guaranteed lifetime income (GLI) option is simply an annuity that employees can add money to over time, provides guranteed growth with no market risk and income for life at retirement. Advantages of a GLI product: • works with existing 401(k)s • has no asset fees to employer • little to no administration cost • plan is portable if EE leaves
  12. 12. A Reliable “Paycheck” In Retirement Employees who want an annuity in their 401(k) plan Employers who currently offer annuities 69% 15%
  13. 13. ! Beware of the Variable Annuity Trap • Many variable annuities offer lifetime income but the real account values are still subject to market risk and can lose value • They also can contain fees as high as 3.5% per year • The lifetime income values may not be portable if the EE leaves As a result of risk, high fees and reduced control, variable annuities do not provide the peace of mind that is one of the major goals of the strategy.
  14. 14. Summary Financial stress at the workplace causes lower productivity and higher absenteeism. One step in reducing financial stress for employees is to provide a guaranteed lifetime income option for a portion of their retirement savings. Please call our office and request a detailed proposal for your workplace: 480-970-5663 Also inquire about customized financial education events at your company. We can provide quarterly education events at your workplace covering your employees’ top financial concerns, such as: • Mortgage Payoff • College Funding • Retirement Planning • Personal Finance To learn more visit: www.wealthforlife.net www.linkedin.com/in/denvernowicz

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