Posts in Category: Broker

Advisors need to be more secure discussing social security with clients

The Social Security Handbook has 2,700 rules and many people depend on financial advisors to help them understand it and implement it in their retirement planning.

However, not all advisors are discussing social security.

David Giertz, president of Nationwide Financial Distributors at Nationwide Financial, spoke to The Wall Street Journal in June 2014 about this topic. He cited a survey of consumers conducted by the Nationwide Financial Retirement Institute which revealed most advisors don’t talk to people about social security.

Why don’t many advisors discuss it?

“I think it’s a very complex topic,” Giertz said in the interview.

Despite this, Giertz stressed the importance to tackling the subject because four out of five people have said they would change advisors if they weren’t talking about social security. He said financial advisors must have a good understanding of those rules and confidence working with them or clients will move on.

David Giertz said Social Security could be up to 40 percent of someone’s income retirement planning process.

“That social security piece is very important,” Giertz told The Wall Street Journal.

One example he gave of the importance of this discussion revolved around someone taking social security too early and losing up to $300,000 over 25 years – that comes out to $12,000 per year or $1,000 per month lost.

Giertz has over 30 years of experience in the financial industry. He has been with Nationwide since 2004 and in his current role as president of Nationwide Financial since March 2013. He is responsible for “the wholesale strategy and distribution of private sector retirement plans, life insurance, annuities, specialty markets, and mutual funds through banks, independent broker/dealers, regional firms, and wirehouses,” according to his LinkedIn page.

He received his Masters in Business Administration from the University of Miami School of Business. Giertz is an industry arbitrator with the Financial Industry Regulatory Authority (FINRA) and is on the board of trustees with Millikin University.

Find out more about David Giertz:

Plan For A Secure Retirement With Expert David Giertz

Creating an effective and secure retirement plan can be a daunting task. For many, it requires a significant amount of organization in a field they don’t have much knowledge in besides incremental saving they have done over the years. Thankfully, David Giertz has an extensive amount of knowledge and reliable strategies that allow anybody to plan for a stable retirement.

The first step, Giertz recommends, to figuring out a reliable plan is understanding when exactly you would like to retire. Because most financial advisors recommend you save at least ten times your annual income by the time you turn 60 (if you are planning to retire by 65), this means that the sooner you want to retire will mean you have to save up exponentially more money before that time (i.e. 33 times your annual income if you plan to retire at 55).

After deciding the specific age and amount of money you are going to save up before your retirement, it is important to choose the most effective plan for your agenda. Roth IRA is most beneficial for early retirements, allowing clients to withdraw before age 59 ½ without penalties, only withdrawal fees. The only downside is that Roth IRA plans are only for people with an annual income of less than $118,000—if you earn more than this amount, it is best to plan for a traditional IRA or 401(k) plan.

If you decide to retire early on a 401(k), 403(b), or an IRA plan, it is also best to use the 72(t) rule, otherwise known as the Substantially Equal Periodic Payments (SEPP) rule. The 72(t) rule allows you to make early withdrawals provided the amounts are equal for at least 5 years or stay consistent until you turn 59 ½. Deviating this draws penalties, but consistency is rewarded.

David Giertz also says to top off your financially secure planning, it is best to pair your plan with a brokerage account to avoid limitations in withdrawals while maintaining access to currencies and various markets that allow you to invest your money effectively.

David Giertz is an established financial advisor in a variety of fields, also having experience as a business coach. He melds unique, effective ideas to a variety of situations, helping clients with planning effectively for any situation.

He currently serves as President of Nationwide Financial Distributors Inc. and holds a Bachelor’s degree in Science from Millikin University and an MBA from the University of Miami.

Find out more about David Giertz: