Trust Builders Enhances TRAK Gap Analysis with New “Sequence of Returns” Feature

Trust Builders Enhances TRAK Gap Analysis with New “Sequence of Returns” Feature

At the T3 Enterprise Conference in Las Vegas, Trust Builders, Inc. announced the release of the Sequence of Returns calculator with integration in The Retirement Analysis Kit’s (TRAK’s) existing retirement needs analysis calculators. The Sequence of Returns analysis evaluates a client’s retirement plan and assesses the likelihood of possible success or failure based on a historical stock index or a blend of indexes.

Retirement planners often assign hypothetical rates of return to illustrate market returns, but this method does not account for shorter periods of market volatility and sequence risk. Retirement funds invested in the market may have both positive and negative rates of return at different time periods. Lower or negative returns early in retirement may have a more detrimental impact on future retirement cash flow.

The Sequence of Returns calculator uses rates of return from a historical index to illustrate the potential performance of retirement investments. It also illustrates the historical success or failure for different retirement ages, life expectancies and rates of inflation. The resulting reports use visually engaging graphics to engage clients while explaining a complex subject.

EDUCATIONAL TOOL

“The Sequence of Returns calculator is a great educational tool allowing advisors to educate clients on market volatility and create realistic retirement expectations based on historical data,” said Edward Dressel, President of Trust Builders, the Dallas, Oregon-based developer of TRAK. “At Trust Builders, we have been focused on retirement education for 30 years. While other fintech providers are changing their products to meet DOL fiduciary rule requirements, TRAK has had interactivity and education as its guiding principles since 1986. For advisors looking for fiduciary tech solutions, TRAK is ready today.”

The Sequence of Returns calculator augments TRAK’s suite of solutions that engage clients in the retirement planning process. TRAK presents advisors with a technological solution that satisfies the DOL fiduciary rule requirements for interactive investment materials. TRAK also allows advisors to incorporate multiple assets and income streams, thereby improving projections of clients’ retirement income.

New York advisor Matt Monroe provided these observations: “The [TRAK] Gap Analysis is great because it serves two purposes. First, it creates dialogue and a conversation for participants to understand what they need in order to retire. Second, it provides that extra layer of fiduciary protection to the plan sponsor, because the plan sponsor has the responsibility to educate employees.” He also noted that TRAK provides extra protection for the plan sponsor in managing fiduciary responsibilities.

California advisor Rick McCallister credits TRAK with helping him move into a fee-based practice. “TRAK has helped my clients see me as a coach and an educator,” he said. “I am providing them a real personalized service.” His use of TRAK has increased client loyalty because they value his high level of service. “TRAK helps set me apart because it helps me act as a trusted advisor, and my clients see me that way, instead of as a product salesman,” he continued. “That makes TRAK integral to fee-based practice.”

TRAK features over 20 calculators to educate clients on a wide variety of financial planning topics including a full retirement needs analysis, retirement plan contribution analysis, Social Security timing strategies, participant benchmark reports and many more.

ABOUT TRUST BUILDERS, INC.

Founded in 1982 as a retirement investment firm for teachers and other public employees, Trust Builders specializes in retirement modeling, analysis and illustration software. Trust Builders is committed to continuously improving its software and to supporting financial advisors with online and classroom-based training. For more information, visit www.AskTRAK.com.

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