What is Product Allocation?

Product Allocation is a retirement solution that both complements and builds on traditional asset allocation strategies. Product Allocation involves placing an investor’s assets into three distinct product categories to help provide a sustainable retirement income. By doing so, advisors can better optimize their clients’ retirement income potential, while at the same time minimizing financial risk.

To create an optimal situation for your clients, use Manulife’s
Product Allocation Tool to determine how much of your clients’ wealth should be allocated to each product category using unique algorithms developed by
Dr. Moshe Milevsky and the QWeMA Group Inc.

Products of Product Allocation

A successful and sustainable retirement income plan requires investing in a proper balance of income-generating products that work together to help provide guaranteed income for life.

Product Allocation creates an optimal mix of products based on individual financial situations that tap into the guarantees and features of each of the following three product categories:

• Systematic Withdrawal Plan (SWPs);

• Guaranteed Minimum Withdrawal Benefits (GMWBs);

• Annuities.

What is RSQ?

The Product Allocation Tool calculates a Retirement Sustainability Quotient (RSQ), which is the percentage measure of how likely a mix of investment products will provide desired lifetime retirement income.

The RSQ can range from zero percent to one hundred percent with the higher the percentage meaning the better the chance of income sustainability. By using the Tool, an RSQ can be improved by developing a plan that determines which combination of investment products may assist investors in achieving their retirement financial goals.

Putting it into Practice

Investors who are approaching or already in retirement, face risks and challenges that differ from previous generations and they will be looking for a complete financial picture that will offer a better chance for retirement success. With Product Allocation you will have the ability to minimize complexity by providing a comprehensive and straightforward retirement income solution.

By examining your current book of business and engaging clients who may be prime candidates to benefit from the Product Allocation strategy, you have the opportunity to consolidate clients’ assets and demonstrate expertise in both the asset gathering and income generation phases of investment planning. You can be an advisor of choice for your clients by expanding your range of products to gather additional assets, all the while helping you retain clients throughout the retirement phase of their lives.