A company that specializes in helping advisors improve communication with investors has acquired a technology platform that provides a retirement planning tool that estimates an individual’s life expectancy.
Australia-based advice and customer engagement platform, Lumiant, has acquired Genivity, a Chicago-based longevity and health planning solution for financial advisors. The transaction will enable Lumiant to offer clients Genivity’s signature product, Health Analysis and Longevity Optimizer (HALO).
HALO, a proprietary product created by Genivity, presents probabilities about an individual’s life expectancy so advisors can use it to inform retirement planning and potential health care costs, one of the leading causes of bankruptcy at retirement. can be incorporated. Holmes, Founder and CEO of Genivity, said:
HALO enables clients to answer health-related questions, such as current health status, family health history, and current lifestyle. Through algorithms, the tool uses that information to list the likelihood of a person reaching a certain age.
Advisors and clients can use that information to make accurate financial plans. HALO gives you a realistic idea of what your potential costs might look like and offers suggestions on how to maximize those costs when you retire. It also shows how people can improve their predictions.
“One of the powerful parts of HALO is being able to see in real time what happens when you make lifestyle changes, and that could make that even more likely,” Holmes said. “The advisors then customized the forecasts to the client’s financial plans to provide detailed senior care and healthcare forecasts with associated costs.”
Advisors can use this technology to overlay on their own website or service, giving clients or potential clients insight into what they will need after retirement. According to Lumiant CEO Blake Wood, HALO exposes advisors to additional capabilities beyond the traditional Monte Carlo assumptions.
“More or less, in addition to traditional measures such as saving more, retiring later or earlier, HALO now offers lifestyle measures such as exercising more, eating healthier and quitting smoking. “These new features will help clients understand how their lifestyle choices affect life expectancy and health care costs.”
Longevity is an issue for advisors and clients, and many worry about whether they will have enough money to adequately fund their retirement. Regarding medical expenses. Health-related conversations are an important component of financial discussions, Holmes said.
“Just using standard actuarial tables and averages puts many customers’ plans at risk,” she said. “To plan better, you first need better numbers.”
Discussing health care is not only difficult for advisors, it is also difficult for families. According to Wood, HALO allows advisors to present key information in a format the client can understand and follow the language to share it with the family.
“We’ve been very focused on building the language and tools in the same way that our family’s clients are using it,” he said. It’s a way to get them to the negotiating table.”
Founded in Australia in 2021, Lumiant provides tools and resources to help clients build better relationships with their clients before opening a base in Evanston, Illinois, USA last year. Genivity, which stands for Generations in Longevity, launched last year as a technology platform that helps advisors protect their clients from high healthcare costs in retirement.
As part of the merger, Lumiant will continue to offer HALO as a standalone product and as an additional component for advisory clients at an additional cost. Wood and Holmes said the additional cost has not yet been determined.
Holmes will join Lumiant as a member of the Executive Leadership Team as Chief Evangelist Officer and will be appointed to Lumiant’s Board of Directors as Executive Director.
According to Wood, the merger will give Lumiant advisors access to tools and resources that many of their competitors do not have access to.
“This helps our advisors separate themselves from others doing traditional goal-based planning, which is a table steak at this point,” he said. needs to elevate it to include health and well-being.”