Cambridge launches retirement preparation tool

Cambridge, the Fairfield, Iowa-based independent broker, has launched RetireTRAC, a new retirement planning and advisor growth tool. The tool aims to help the firm’s advisers assess the retirement preparedness of clients and prospects.

The tool is the third in a series of joint ventures between Cambridge and the large companies, or supervisory jurisdiction offices, it supports. RetireTRAC was developed in conjunction with Nettuno Group, an Atlanta-based OSJ that joined b/d in 2019.

Other joint ventures include Spire Outsourcing, an outsourced financial planning service developed with Pivotal Financial Advisors in Fort Worth, Texas; and that of the firm Retirement Plan Advisors program, a joint venture with Retirement Advisors in Chicago.

Jeff Vivacqua, president of growth and development at Cambridge, said such joint ventures allow the company to fill gaps in its service model, and rather than sourcing it from a third party, the tools needed can be right in front of them.

“There are finance professionals who have built tools that they can use in their office or their set or their big business, and it was staring us right in the face with a few of them to say, you have something that could be used outside of your group and are you interested in it? »

In these cases, these companies become stand-alone businesses, separate from Cambridge and these YSOs, with Cambridge supporting them and making the tools available to its nearly 4,000 advisors, for a fee. About 30 to 50 advisors expressed interest in RetireTRAC, and the company gave them access to a two- to four-week free trial.

The tool begins with an assessment of 20 five- to seven-minute questions asked by the client to assess where they are in their retirement plan or preparation for retirement.

“There are many assessments to do risk tolerance, investment policy, asset management, independent of financial planning,” Vivacqua said. “It’s in a different bucket. It’s simply, where does the client think they are today from a retirement readiness perspective? »

Some of the questions include: “Have you compared your expected retirement income with your expected expenses? “Do you have an up-to-date estimate and appropriate Social Security income strategy?” “Do you have a will and proper estate planning? “Do you have any hobbies and/or interests that match your desired level of activity in retirement? and “Do you have a plan to continue challenging and developing your mental capacity in retirement?” The advisor has the option of modifying some of the questions to make them more relevant to their business model.

The tool takes these responses and provides a score of 1, being the least prepared for retirement, to five, the most prepared. RetireTRAC also includes marketing materials and videos that advisors can use to help these customers and prospects improve their scores.

When Cambridge forms a joint venture with one of its companies, its help can take different forms, Vivacqua said. In some scenarios, the OSJ will handle the sales and distribution of the tool. In other situations, the Cambridge inside sales team will handle outreach. The company may provide capital to start or develop the technology. Or, it may be necessary to customize the technology to be used in the Cambridge system.

For example, with RetireTRAC, Cambridge had to spend time building it so that each advisor had a unique URL to their business. It was necessary so that only they could see the information in their systems.

Cambridge is exploring other areas to partner with its larger companies. For one thing, he envisions a lead generation tool to help self-directed investors build trust with an advisor over time. This would likely be a front-end product, where an advisor could provide certain services from a financial literacy or investment perspective that a do-it-yourselfer would be looking for.

“We think it’s important because not everyone can be the Johnny Carson, not everyone will be on TV, not everyone will be on a radio show and not everyone wants to do of seminars,” said Vivacqua. “For advisors looking for something different, we’re always looking for something else that’s complementary to different specializations or segmentation models.”

Cambridge is also looking to partner with a training program to complement its existing in-house curriculum.

“We know that some advisers have also implemented training programs within their larger companies,” he said.

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