Wednesday, March 31, 2010
Annuity With LTC Rider Debuts
Genworth Financial Inc. (NYSE:GNW) is rolling out a linked-benefit policy that links single premium non-qualified deferred annuity with a long term care insurance rider.
Called the Total Living Coverage Annuity, the policy is being underwritten by Genworth Life Insurance Company, a unit of Genworth, Richmond, Va.
The contract allows policyholders to use their annuity value to purchase LTC insurance coverage up to three times the amount of their single premium, says Buck Stinson, president of Genworth's U.S. Life Insurance Products...
L&HN: Annuity With LTC Rider Debuts
Called the Total Living Coverage Annuity, the policy is being underwritten by Genworth Life Insurance Company, a unit of Genworth, Richmond, Va.
The contract allows policyholders to use their annuity value to purchase LTC insurance coverage up to three times the amount of their single premium, says Buck Stinson, president of Genworth's U.S. Life Insurance Products...
L&HN: Annuity With LTC Rider Debuts
Permalink posted by markw @ 4:53 AM 
Annuities are perfect for some investors
Annuities do have their advantages, lifetime income, inflation protection, and principle protection among others. On the other hand, expect a lower return on your investment, and your money is often locked in. Even so, one Burbank woman found it to be perfect.
Three years ago, on Christmas Day, Gloria Perico lost her husband, Orlando. It was a tough time.
"I was very desperate the day he died, on Christmas morning," said Perico. "I had no idea what I was going to do..."
ABC-7: Annuities are perfect for some investors
Three years ago, on Christmas Day, Gloria Perico lost her husband, Orlando. It was a tough time.
"I was very desperate the day he died, on Christmas morning," said Perico. "I had no idea what I was going to do..."
ABC-7: Annuities are perfect for some investors
Permalink posted by markw @ 4:47 AM
Tuesday, March 30, 2010
A Hidden Tax on Annuities Lurks in the Health Care Reform Law
The Obama administration is trying to encourage people to buy annuities to ensure that they don't outlive their savings. But a little-noticed provision of the new health care reform law will slap a 3.8% tax on payouts from annuities purchased by high-income earners outside their workplace. And, not surprisingly, the life insurance industry isn't happy about that.
Life insurers, which have sold approximately 15 million so-called "nonqualified" policies containing some $710 billion in assets, hope to get this particular provision of the Health Care and Education Reconciliation Act of 2010 repealed...
DailyFinance: A Hidden Tax on Annuities Lurks in the Health Care Reform Law
Life insurers, which have sold approximately 15 million so-called "nonqualified" policies containing some $710 billion in assets, hope to get this particular provision of the Health Care and Education Reconciliation Act of 2010 repealed...
DailyFinance: A Hidden Tax on Annuities Lurks in the Health Care Reform Law
Permalink posted by markw @ 6:06 AM
Banks Annuity Sales Plunge
Annuity sales in banks have gotten off to a poor start this year, according to Kehrer-LIMRA... Total annuity sales in banks were 44% lower than in January 2009, Kehrer-LIMRA reports.
“We haven’t seen total annuity sales fall this low in a decade” says Janet Cappelletti, associate research director at Kehrer-LIMRA, a unit of LIMRA, Windsor, Conn.
About $2.4 billion of fixed and variable annuities were sold in banks in January, down from $4.2 billion in January 2009... Bank channel sales of fixed annuities fell to $1.3 billion, down 61% from $3.5 billion...
NU: Banks Annuity Sales Plunge
“We haven’t seen total annuity sales fall this low in a decade” says Janet Cappelletti, associate research director at Kehrer-LIMRA, a unit of LIMRA, Windsor, Conn.
About $2.4 billion of fixed and variable annuities were sold in banks in January, down from $4.2 billion in January 2009... Bank channel sales of fixed annuities fell to $1.3 billion, down 61% from $3.5 billion...
NU: Banks Annuity Sales Plunge
Permalink posted by markw @ 6:04 AM
Insurance regulators bolster annuity suitability rules
New amendments to the National Association of Insurance Commissioners’ annuity suitability model regulations will hold carriers responsible for ensuring that all annuity transactions are suitable for clients.
Previously, the suitability rule imposed an obligation on insurers only with respect to variable annuities. The rule originally was intended to bring more states in line in terms of suitable standards for fixed annuities...
Investment News: Insurance regulators bolster annuity suitability rules
Previously, the suitability rule imposed an obligation on insurers only with respect to variable annuities. The rule originally was intended to bring more states in line in terms of suitable standards for fixed annuities...
Investment News: Insurance regulators bolster annuity suitability rules
Permalink posted by markw @ 6:03 AM
Low interest rates make pensions look especially good
What's good for America isn't necessarily good for all Americans. Case in point: low interest rates.
The government has cut short-term rates (which the Federal Reserve controls) to essentially zero, and it has spent more than $1.5 trillion buying assets and mortgages to hold down long-term rates (which are controlled by the financial markets). This is good for the U.S. economy as a whole, and especially good for borrowers. But these artificially low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income...
WaPo: Low interest rates make pensions look especially good
The government has cut short-term rates (which the Federal Reserve controls) to essentially zero, and it has spent more than $1.5 trillion buying assets and mortgages to hold down long-term rates (which are controlled by the financial markets). This is good for the U.S. economy as a whole, and especially good for borrowers. But these artificially low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income...
WaPo: Low interest rates make pensions look especially good
Permalink posted by markw @ 6:00 AM
Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Primerica Inc., the insurance business that Sanford I. “Sandy” Weill used to build Citigroup Inc., is selling shares in an initial public offering at a discount to its competitors.
Primerica plans to raise $252 million tomorrow, a filing with the Securities and Exchange Commission and Bloomberg data showed. At the middle of its price range, the Duluth, Georgia- based distributor of consumer-finance products from term-life insurance to mutual funds would be valued at 6.74 times earnings after accounting for its planned reorganization. That’s 29 percent less than the median for U.S. life and health-insurance providers, data compiled by Bloomberg show...
Business Week: Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Primerica plans to raise $252 million tomorrow, a filing with the Securities and Exchange Commission and Bloomberg data showed. At the middle of its price range, the Duluth, Georgia- based distributor of consumer-finance products from term-life insurance to mutual funds would be valued at 6.74 times earnings after accounting for its planned reorganization. That’s 29 percent less than the median for U.S. life and health-insurance providers, data compiled by Bloomberg show...
Business Week: Primerica Discounted in IPO as Citigroup Unravels Weill Deals
Permalink posted by markw @ 5:19 AM
Monday, March 29, 2010
State fines, then gives some back to AXA Equitable
What the state of New York takes, it can also giveth back.
The state announced a $1.25 million grant to AXA the same day a different state agency fined the company $1.9 million for life insurance violations.
On Friday morning, state Insurance Superintendent James Wrynn announced that the state Insurance Department had fined AXA Equitable Life Insurance Co. $1.9 million for violations, including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies. The violations occurred from Jan. 1, 2001, to June 30, 2006...
Syracuse.com: State fines, then gives some back to AXA Equitable
The state announced a $1.25 million grant to AXA the same day a different state agency fined the company $1.9 million for life insurance violations.
On Friday morning, state Insurance Superintendent James Wrynn announced that the state Insurance Department had fined AXA Equitable Life Insurance Co. $1.9 million for violations, including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies. The violations occurred from Jan. 1, 2001, to June 30, 2006...
Syracuse.com: State fines, then gives some back to AXA Equitable
Permalink posted by markw @ 5:48 AM
B-Ds reluctant to OK exchanges into LTC
Paperwork, suitability, supervision key concerns in swapping clients out of annuities or insurance
Financial advisers had hoped to begin this year with new momentum — the ability to swap clients out of existing annuities or insurance in exchange for long-term-care coverage — but broker-dealers have hit the brakes, citing problems with large amounts of paperwork to process the business, among other troubles...
Investment News: B-Ds reluctant to OK exchanges into LTC
Financial advisers had hoped to begin this year with new momentum — the ability to swap clients out of existing annuities or insurance in exchange for long-term-care coverage — but broker-dealers have hit the brakes, citing problems with large amounts of paperwork to process the business, among other troubles...
Investment News: B-Ds reluctant to OK exchanges into LTC
Permalink posted by markw @ 5:47 AM
Hey kids! How about a Life Insurance Mandate?
In order to address the national debt and social security funding issues it may occur to Obama and the party that all citizens should be required to purchase a life insurance policy with the federal government as the beneficiary. This would be in the interests of the majority of the people as any loss in future tax revenue needed to fund government entitlement programs and debt service resulting from the untimely death of the citizen in question would be covered by the mandated life insurance policy.
Each citizen's estimated work-life income could be calculated based upon life expectancy, education, and past income. Inequities attributed to race, educational opportunity, family history and other social factors would be balanced by government subsidies and tax credits to promote social justice...
AT: Hey kids! How about a Life Insurance Mandate?
Each citizen's estimated work-life income could be calculated based upon life expectancy, education, and past income. Inequities attributed to race, educational opportunity, family history and other social factors would be balanced by government subsidies and tax credits to promote social justice...
AT: Hey kids! How about a Life Insurance Mandate?
Permalink posted by markw @ 5:34 AM
Day Traders 2.0: Wired, Angry and Loving It
Remember the day traders?
They were hard to miss during the tech-stock mania a decade ago, when the Nasdaq seemed like a casino built by morons and a chimp with darts could pick winners, The New York Times’s David Segal reports from Encinitas, Calif. You would hear about these guys — nearly all of them were guys — and wonder: Could anyone make a living this way? And if the answer was yes, why were the rest of us suckers still holding down regular jobs?
DealBook: Day Traders 2.0: Wired, Angry and Loving It
They were hard to miss during the tech-stock mania a decade ago, when the Nasdaq seemed like a casino built by morons and a chimp with darts could pick winners, The New York Times’s David Segal reports from Encinitas, Calif. You would hear about these guys — nearly all of them were guys — and wonder: Could anyone make a living this way? And if the answer was yes, why were the rest of us suckers still holding down regular jobs?
DealBook: Day Traders 2.0: Wired, Angry and Loving It
Permalink posted by markw @ 5:28 AM
Advisers can use reform to reach out to clients who own small businesses
Increased uncertainty about costs and taxes is fueling discussion; doctors worried
A number of financial advisers are using the health care reform legislation passed last week as an opportunity to reach out to clients and review their investment portfolios.
In particular, there is an opportunity for advisers to work closely with small-business-owner clients — and even more so with clients who run their own medical practices, advisers said.
“I have received many calls from small-business owners concerned about the legislation,” said Dr. Brian Knabe, a financial adviser with Savant Capital Management Inc., who also has been a primary-care physician for the past 14 years. “But particularly, I think there is a huge opportunity for advisers to work with physicians who are worried about their salaries' decreasing and their taxes' increasing..."
Investment News: Advisers can use reform to reach out to clients who own small businesses
A number of financial advisers are using the health care reform legislation passed last week as an opportunity to reach out to clients and review their investment portfolios.
In particular, there is an opportunity for advisers to work closely with small-business-owner clients — and even more so with clients who run their own medical practices, advisers said.
“I have received many calls from small-business owners concerned about the legislation,” said Dr. Brian Knabe, a financial adviser with Savant Capital Management Inc., who also has been a primary-care physician for the past 14 years. “But particularly, I think there is a huge opportunity for advisers to work with physicians who are worried about their salaries' decreasing and their taxes' increasing..."
Investment News: Advisers can use reform to reach out to clients who own small businesses
Permalink posted by markw @ 5:26 AM
Axa fined $1.9m by NY State Insurance Department
New York State Insurance Superintendent James J Wrynn has announced that Axa Equitable Life Insurance Company has paid a $1.9m fine for violations including making inaccurate or incomplete disclosures to consumers buying replacement annuity contracts and life insurance policies...
Post Online: Axa fined $1.9m by NY State Insurance Department
Post Online: Axa fined $1.9m by NY State Insurance Department
Permalink posted by markw @ 5:18 AM
AIG Increases Concentration of Storm Risk With Divestitures
American International Group Inc., the insurer that stayed profitable through the Sept. 11 attacks and Hurricane Katrina, may be more exposed to disasters after divesting life insurance units to repay its government bailout.
AIG will be a “smaller and more focused company” after selling American Life Insurance Co. and AIA Group Ltd., divisions that produced more than a third of the firm’s insurance revenue last year, Chief Executive Officer Robert Benmosche told shareholders this month...
BusinessWeek: AIG Increases Concentration of Storm Risk With Divestitures
AIG will be a “smaller and more focused company” after selling American Life Insurance Co. and AIA Group Ltd., divisions that produced more than a third of the firm’s insurance revenue last year, Chief Executive Officer Robert Benmosche told shareholders this month...
BusinessWeek: AIG Increases Concentration of Storm Risk With Divestitures
Permalink posted by markw @ 5:18 AM
Friday, March 26, 2010
A.M. Best negative on The Hartford
For the second time in a week, Wall Street ratings agenciesare raising concerns about the potential impact that volatile financial markets may have on Hartford Financial Services Group Inc.'s life insurance business.
A.M. Best Co. on Thursday affirmed its issuer credit rating of "bbb+'' for The Hartford, but noted its rating outlook is negative...
Hartford Business: A.M. Best negative on The Hartford
A.M. Best Co. on Thursday affirmed its issuer credit rating of "bbb+'' for The Hartford, but noted its rating outlook is negative...
Hartford Business: A.M. Best negative on The Hartford
Permalink posted by markw @ 6:58 AM
What can the NFL draft teach us about personal finance?
Just like a GM preparing for the draft, always remember to expect the unexpected when investing.
Though it's still more than a month away, the National Football League draft is the nonstop talk of sports radio... Given my hometown team's position at the number two pick in this year's draft, speculation is at an all time high. Will they pick the best athlete overall, or the one in a position they most need? Will their first choice be available, or will he already have been taken by another team? There may also be strategizing and offers to trade down to a lower pick.
There are several parallels to personal finance in these speculative times that we can learn from the draft...
FiLife: What can the NFL draft teach us about personal finance?
Though it's still more than a month away, the National Football League draft is the nonstop talk of sports radio... Given my hometown team's position at the number two pick in this year's draft, speculation is at an all time high. Will they pick the best athlete overall, or the one in a position they most need? Will their first choice be available, or will he already have been taken by another team? There may also be strategizing and offers to trade down to a lower pick.
There are several parallels to personal finance in these speculative times that we can learn from the draft...
FiLife: What can the NFL draft teach us about personal finance?
Permalink posted by markw @ 5:23 AM
Trillions in IRA funds could be forced into U.S. Treasury debt
A key labor union ally of the Obama administration has mounted an effort to create government-mandated worker retirement accounts as an entitlement program, with the possibility that a portion of all private retirement funds could be forced into U.S. Treasury debt.
"Retirement USA," the Service Employee International Union, or SEIU, has joined with the AFL-CIO, the Economic Policy Institute, a Washington-based economic left-leaning think tank that receives substantial labor funding and two other left-leaning interest groups, the Pension Rights Center and the National Committee to Preserve Social Security...
WND: Trillions in IRA funds could be forced into U.S. Treasury debt
"Retirement USA," the Service Employee International Union, or SEIU, has joined with the AFL-CIO, the Economic Policy Institute, a Washington-based economic left-leaning think tank that receives substantial labor funding and two other left-leaning interest groups, the Pension Rights Center and the National Committee to Preserve Social Security...
WND: Trillions in IRA funds could be forced into U.S. Treasury debt
Permalink posted by markw @ 4:45 AM
Insurance Groups Blast Annuity Income Tax
Five insurance trade groups have joined to fight a section of H.R. 4872 -- the Patient Protection and Affordable Care Act “fixer bill” -- that would impose a 3.8% tax on annuities.
Drafters of H.R. 4872, the Reconciliation Act of 2010, want to use the revenue from the tax, which would apply to individuals with annual incomes over $200,000 and couples with annual incomes over $250,000, to help fund the Medicare program...
L&HN: Insurance Groups Blast Annuity Income Tax
Drafters of H.R. 4872, the Reconciliation Act of 2010, want to use the revenue from the tax, which would apply to individuals with annual incomes over $200,000 and couples with annual incomes over $250,000, to help fund the Medicare program...
L&HN: Insurance Groups Blast Annuity Income Tax
Permalink posted by markw @ 4:43 AM
Thursday, March 25, 2010
Insurance swindler wants 845-year sentence reduced
Convicted life-insurance swindler Sholam Weiss has time on his hands — 845 years, a record for white-collar crime. Today in Atlanta his attorney appealed for his client to be resentenced in hopes of shaving off a little time — about 800 years worth.
The Associated Press tells the tale of the Scranton, Pa., man, who 10 years ago in Florida was convicted of stealing $125 million from customers of National Heritage Life Insurance Co. The Orlando firm collapsed in 1994 and nearly all 25,000 policy holders lost their life savings...
USA Today: Insurance swindler wants 845-year sentence reduced
The Associated Press tells the tale of the Scranton, Pa., man, who 10 years ago in Florida was convicted of stealing $125 million from customers of National Heritage Life Insurance Co. The Orlando firm collapsed in 1994 and nearly all 25,000 policy holders lost their life savings...
USA Today: Insurance swindler wants 845-year sentence reduced
Permalink posted by markw @ 4:44 AM
Wednesday, March 24, 2010
Dodd bill calls for study — but not regulation — of financial planners
Among other things, GAO charged with examining professional standards that currently govern planners and advisers.
The financial services reform bill that the Senate Banking Committee approved yesterday calls for a study of the regulatory regime for financial planners. But the legislation does not call for the creation of an oversight board — something the Financial Planning Coalition had hoped for...
Investment News: Dodd bill calls for study — but not regulation — of financial planners
The financial services reform bill that the Senate Banking Committee approved yesterday calls for a study of the regulatory regime for financial planners. But the legislation does not call for the creation of an oversight board — something the Financial Planning Coalition had hoped for...
Investment News: Dodd bill calls for study — but not regulation — of financial planners
Permalink posted by markw @ 5:56 AM
Insurers Get A Break In Financial Services Bill
Insurers have secured key changes in financial services reform legislation easing a proposed financial requirement for large firms and eliminating tighter regulation of financial product sales.
One revision to the bill reported out of the Senate Banking Committee yesterday means only one life and property and casualty insurer will be required to pay into a fund to finance a Resolution Authority for the liquidation or reorganization of huge financial services companies whose bankruptcy would pose a systemic risk to the economy...
P-C: Insurers Get A Break In Financial Services Bill
One revision to the bill reported out of the Senate Banking Committee yesterday means only one life and property and casualty insurer will be required to pay into a fund to finance a Resolution Authority for the liquidation or reorganization of huge financial services companies whose bankruptcy would pose a systemic risk to the economy...
P-C: Insurers Get A Break In Financial Services Bill
Permalink posted by markw @ 5:38 AM
Banking Committee Passes Financial Reform Bill on Party-Line Vote
The Senate Banking Committee approved Monday, March 22 the financial services overhaul bill by a vote of 13-10 (13 Democrats and 10 Republicans). An expected week-long mark-up schedule was cut short when Republican committee members decided over the prior weekend against submitting any amendments to Senate Banking Committee Chairman Christopher Dodd’s bill...
Daily Caller: Banking Committee Passes Financial Reform Bill on Party-Line Vote
Daily Caller: Banking Committee Passes Financial Reform Bill on Party-Line Vote
Permalink posted by markw @ 5:22 AM
Assessing the Future of ERM Technology
For years, insurance industry experts have talked about enterprise risk management (ERM) programs and their expected results. But all the talk seems to have fallen on deaf ears, as results from a recent survey reveal that even more attention needs to be paid to ERM.
CSC, the American Council of Life Insurers (ACLI) and Towers Watson teamed up to survey ACLI members—large and small life and annuity carriers—on risk management practices. The research centered on identifying and sharing life insurance industry ERM best practices, and ways technology can help those carriers improve processes and get a clearer view of overall risk exposure. The companies then compiled the results into a report, “Is Your Organization at Risk? A Different Look at Enterprise Management."
While half (53%) of the respondents have largely adopted ERM concepts, and begun the establishment of ERM programs with varying levels of activity over the last 12 months, they feel there is plenty of room for improvement, partly through the use of technology...
INN: Assessing the Future of ERM Technology
CSC, the American Council of Life Insurers (ACLI) and Towers Watson teamed up to survey ACLI members—large and small life and annuity carriers—on risk management practices. The research centered on identifying and sharing life insurance industry ERM best practices, and ways technology can help those carriers improve processes and get a clearer view of overall risk exposure. The companies then compiled the results into a report, “Is Your Organization at Risk? A Different Look at Enterprise Management."
While half (53%) of the respondents have largely adopted ERM concepts, and begun the establishment of ERM programs with varying levels of activity over the last 12 months, they feel there is plenty of room for improvement, partly through the use of technology...
INN: Assessing the Future of ERM Technology
Permalink posted by markw @ 4:57 AM
Tuesday, March 23, 2010
Prudential’s Strangfeld Says Capital Use Is New Focus
Prudential Financial Inc.’s John Strangfeld, chief executive officer of the second-biggest U.S. life insurer, said he’s focusing on using capital raised last year when he needed a buffer against market declines.
“I am pleased to report that we are transitioning from a period of fortifying capital to the challenge of capital deployment,” Strangfeld said in a letter to shareholders posted today on the Newark, New Jersey-based company’s Web site...
Business Week: Prudential’s Strangfeld Says Capital Use Is New Focus
“I am pleased to report that we are transitioning from a period of fortifying capital to the challenge of capital deployment,” Strangfeld said in a letter to shareholders posted today on the Newark, New Jersey-based company’s Web site...
Business Week: Prudential’s Strangfeld Says Capital Use Is New Focus
Permalink posted by markw @ 4:51 AM
Bank Rep Production Sputters in January
Despite advisors’ bullish prognostications, average production in Januardy fell 11% to $14,930 from a month earlier.
“January ended up being a dud,” said Scott Stathis, a managing director and chief operating officer of Kehrer-LIMRA, the firm that supplies the data for the Bank Insurance and Securities Association’s Monthly Productivity Benchmark report.
For the first time, Kehrer-LIMRA is now including fee income as well. Sales production including the fourth quarter’s fees, which paid out in January, was $25,359, up 5% from December’s average...
Bank Investment Consultant: Bank Rep Production Sputters in January
“January ended up being a dud,” said Scott Stathis, a managing director and chief operating officer of Kehrer-LIMRA, the firm that supplies the data for the Bank Insurance and Securities Association’s Monthly Productivity Benchmark report.
For the first time, Kehrer-LIMRA is now including fee income as well. Sales production including the fourth quarter’s fees, which paid out in January, was $25,359, up 5% from December’s average...
Bank Investment Consultant: Bank Rep Production Sputters in January
Permalink posted by markw @ 4:49 AM
Insurers Decry Health Bill For Lack Of Cost Restrictions
Reacting to the health care legislation passed by the House, insurance and employer groups voiced deep concerns over what they see as a lack of provisions designed to reduce costs.
Meanwhile, a doctors group, Physicians for a National Health Program, described the bill as a measure that would leave to many persons uninsured and be an unwarranted bonanza for health insurers...
P-C: Insurers Decry Health Bill For Lack Of Cost Restrictions
Meanwhile, a doctors group, Physicians for a National Health Program, described the bill as a measure that would leave to many persons uninsured and be an unwarranted bonanza for health insurers...
P-C: Insurers Decry Health Bill For Lack Of Cost Restrictions
Permalink posted by markw @ 4:48 AM
Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
A Florida insurance agent lost his licenses to do business in the state after regulators say he participated in an annuity scheme generating more than $100,000 in commission for him and his agency.
Mitchell Brian Storfer, 49, allegedly lured seniors into bad annuity deals by offering free meals and dinner workshops at local Vero Beach, Fla., restaurants through is agency, Seniors Financial International Inc., according to the Florida Department of Financial Services...
IFA Web News: Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
Mitchell Brian Storfer, 49, allegedly lured seniors into bad annuity deals by offering free meals and dinner workshops at local Vero Beach, Fla., restaurants through is agency, Seniors Financial International Inc., according to the Florida Department of Financial Services...
IFA Web News: Florida agent loses licenses over alleged ‘free lunch’ annuity scheme
Permalink posted by markw @ 4:38 AM
Wall Street Must Put Clients First
What’s the most significant difference between a stock broker and an investment advisor?
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
The investment advisor pledges to put his or her client’s interests first. That would require full disclosure of all costs and commissions, as well as any potential conflicts of interest. It’s a standard set by the Investment Advisers Act of 1940 and affirmed by the Supreme Court.
But stock brokers are only required to “know the customer” and offer products that are “suitable...”
MoneyShow: Wall Street Must Put Clients First
Permalink posted by markw @ 4:23 AM
Monday, March 22, 2010
Open VA platform at Ameriprise may be less than open
Axa, Lincoln, MetLife wholesalers will be personae non grata; cap on commissions planned
Ameriprise Financial Inc.'s plan to open its brokerage platform to outside variable annuities falls short of the open architecture favored by other independent broker-dealers.
The move, which is expected to occur by the end of the second quarter, is apparently aimed in part at boosting Ameriprise's ability to recruit independent-contractor registered representatives and financial advisers. Such advisers are often big sellers of variable annuities and consider the in-vestment options available to them carefully before changing firms...
Investment News: Open VA platform at Ameriprise may be less than open
Ameriprise Financial Inc.'s plan to open its brokerage platform to outside variable annuities falls short of the open architecture favored by other independent broker-dealers.
The move, which is expected to occur by the end of the second quarter, is apparently aimed in part at boosting Ameriprise's ability to recruit independent-contractor registered representatives and financial advisers. Such advisers are often big sellers of variable annuities and consider the in-vestment options available to them carefully before changing firms...
Investment News: Open VA platform at Ameriprise may be less than open
Permalink posted by markw @ 7:01 AM
Jackson Annuity Sales Validate Strategy
By avoiding gimmicky riders, benefit reductions and higher prices, Jackson National Life Insurance Co. reported its best year for annuity sales through banks in 2009.
"We heard a lot of skepticism," said Jack Mirshler, the western divisional vice president for the Lansing, Mich., unit of Prudential PLC of London. "We remained committed to our long-term approach. We weren't going to go out and create some hot product that would last for three months or do some fire sale on products. None of that made sense for our customers. We never wanted to be a company that chased market share with frivolous riders."
Jackson reported last week that annuity sales in the bank channel increased 23.1%, to $2.45 billion as variable annuity sales through banks increased 72.9%, to $1.3 billion last year...
INN: Jackson Annuity Sales Validate Strategy
"We heard a lot of skepticism," said Jack Mirshler, the western divisional vice president for the Lansing, Mich., unit of Prudential PLC of London. "We remained committed to our long-term approach. We weren't going to go out and create some hot product that would last for three months or do some fire sale on products. None of that made sense for our customers. We never wanted to be a company that chased market share with frivolous riders."
Jackson reported last week that annuity sales in the bank channel increased 23.1%, to $2.45 billion as variable annuity sales through banks increased 72.9%, to $1.3 billion last year...
INN: Jackson Annuity Sales Validate Strategy
Permalink posted by markw @ 4:51 AM
Revised amendment aims to heal breaches in advisor community
New oversight for financial planners may be tougher for Senators to vote against because it is seen as pro-consumer
In an attempt to diminish opposition to an amendment requiring financial planners to be regulated by a new oversight board, Sen. Herb Kohl, D-Wisc., has revised a proposal he plans to introduce when financial service reform legislation comes before the Senate Banking Committee next week.
The new version of Sen. Kohl’s “Financial Planners Act” draft legislation, released Thursday night, now stipulates that financial planners covered by a proposed Financial Planner Oversight Board are people who hold themselves out to the public as financial planners...
RIA Biz: Revised amendment aims to heal breaches in advisor community
In an attempt to diminish opposition to an amendment requiring financial planners to be regulated by a new oversight board, Sen. Herb Kohl, D-Wisc., has revised a proposal he plans to introduce when financial service reform legislation comes before the Senate Banking Committee next week.
The new version of Sen. Kohl’s “Financial Planners Act” draft legislation, released Thursday night, now stipulates that financial planners covered by a proposed Financial Planner Oversight Board are people who hold themselves out to the public as financial planners...
RIA Biz: Revised amendment aims to heal breaches in advisor community
Permalink posted by markw @ 4:49 AM
Friday, March 19, 2010
A Hot Job for Hard Times: The Life-Insurance Agent
One of the most old-fashioned occupations in finance is back in favor: the life-insurance agent.
Some big insurers are adding thousands of agents and planning to sign up more. They're taking advantage of the weak job market to scoop up former real-estate agents, mortgage brokers, bankers and lawyers whose prospects have declined.
New York Life Insurance Co. added 3,618 agents last year. Northwestern Mutual Life Insurance Co. signed up 2,340. In Texas, a start-up with big-name backers opened in January with 2,200 agents and plans to double the number in three years...
WSJ: A Hot Job for Hard Times: The Life-Insurance Agent
Some big insurers are adding thousands of agents and planning to sign up more. They're taking advantage of the weak job market to scoop up former real-estate agents, mortgage brokers, bankers and lawyers whose prospects have declined.
New York Life Insurance Co. added 3,618 agents last year. Northwestern Mutual Life Insurance Co. signed up 2,340. In Texas, a start-up with big-name backers opened in January with 2,200 agents and plans to double the number in three years...
WSJ: A Hot Job for Hard Times: The Life-Insurance Agent
Permalink posted by markw @ 5:06 AM
Comerica Repays TARP; Hartford Sells $1.95b Stock
Regional bank Comerica Inc on Wednesday said it has repaid $2.25 billion of federal bailout money, while Hartford Financial Services Group Inc said it sold $1.95 billion of stock to help repay $3.4 billion of its bailout funds...
I&T: Comerica Repays TARP; Hartford Sells $1.95b Stock
I&T: Comerica Repays TARP; Hartford Sells $1.95b Stock
Permalink posted by markw @ 4:52 AM
FIA Fly-In: More Than 150 Offices Visited
Participants in the fixed indexed annuity fly-in are probably visiting the offices of more than 50 senators and about 100 House members this week.
Blair O’Connor, legislative affairs committee chair at the National Association for Fixed Annuities, Milwaukee, and chairman of the new Independent Fixed Annuities Agents Council, Sterling Heights, gave that estimate in an interview today...
L&HN: FIA Fly-In: More Than 150 Offices Visited
Blair O’Connor, legislative affairs committee chair at the National Association for Fixed Annuities, Milwaukee, and chairman of the new Independent Fixed Annuities Agents Council, Sterling Heights, gave that estimate in an interview today...
L&HN: FIA Fly-In: More Than 150 Offices Visited
Permalink posted by markw @ 4:48 AM
N.Y. agent arrested for grand larceny in alleged annuity scheme
A Queensbury, N.Y., insurance agent is accused of defrauding a couple by stealing money given to him for purchasing insurance policies... Joseph A. Marvullo, 60, a self-employed, independent insurance agent, was recently arrested and charged with grand larceny, according to the New York Attorney General’s Office.
Marvullo met several times at the home of a Fort Ann, N.Y., couple, who wished to purchase life insurance, disability insurance and annuity life insurance policies, according to officials. The agent represented to the couple that he could sell them annuities as investments, yielding a higher interest rate...
IFA Web News: N.Y. agent arrested for grand larceny in alleged annuity scheme
Marvullo met several times at the home of a Fort Ann, N.Y., couple, who wished to purchase life insurance, disability insurance and annuity life insurance policies, according to officials. The agent represented to the couple that he could sell them annuities as investments, yielding a higher interest rate...
IFA Web News: N.Y. agent arrested for grand larceny in alleged annuity scheme
Permalink posted by markw @ 4:47 AM
Thursday, March 18, 2010
Advisors Seek Simpler Annuities, Education
The retirement guarantees provided by annuities are more important to investors than ever, advisors say, even as many advisors still avoid using them in clients' portfolios.
As a solution, some advisors say the insurance companies that offer annuities need to simplify their products, help educate investors and advisors and battle the perception that they are too costly.
In the wake of the recent downturn, which decimated some portfolios, investors understand the importance of annuities in a way they hadn't before...
FA Mag: Advisors Seek Simpler Annuities, Education
As a solution, some advisors say the insurance companies that offer annuities need to simplify their products, help educate investors and advisors and battle the perception that they are too costly.
In the wake of the recent downturn, which decimated some portfolios, investors understand the importance of annuities in a way they hadn't before...
FA Mag: Advisors Seek Simpler Annuities, Education
Permalink posted by markw @ 4:55 AM
O.C. firm to settle Ponzi suit with SEC
An Orange County investment advisor and his firm agreed Wednesday to pay more than $100,000 to settle charges by the Securities and Exchange Commission that they placed clients into what turned out to be a Ponzi scheme run by disgraced Democratic fundraiser Norman Hsu.
The SEC alleged that Paul H. Heckler and his Tustin firm, Yosemite Capital Management, defrauded clients by conducting inadequate research before investing $3.25 million in a company that secretly fed clients into Hsu's Ponzi scheme...
LA Times: O.C. firm to settle Ponzi suit with SEC
The SEC alleged that Paul H. Heckler and his Tustin firm, Yosemite Capital Management, defrauded clients by conducting inadequate research before investing $3.25 million in a company that secretly fed clients into Hsu's Ponzi scheme...
LA Times: O.C. firm to settle Ponzi suit with SEC
Permalink posted by markw @ 4:54 AM
Moody’s affirms The Hartford ratings
Moody’s believes uncertainty exists regarding the capital adequacy of the organisation's life insurance operation, both in terms of its investment portfolio and its variable annuity liabilities.
Moody's Investors Service has affirmed the credit ratings of The Hartford Financial Services Group, (senior debt rated Baa3) and its main operating subsidiaries following the company's announcement that it intends to repay the $3.4bn Troubled Asset Relief Programme (Tarp) fund...
Reactions: Moody’s affirms The Hartford ratings
Moody's Investors Service has affirmed the credit ratings of The Hartford Financial Services Group, (senior debt rated Baa3) and its main operating subsidiaries following the company's announcement that it intends to repay the $3.4bn Troubled Asset Relief Programme (Tarp) fund...
Reactions: Moody’s affirms The Hartford ratings
Permalink posted by markw @ 4:46 AM
Dearborn National Rolls Out MYG Annuities
An annuity insurer is rolling out a new family of single-premium deferred multi-year guarantee annuities with an optional market value adjustment feature.
Issued by Fort Dearborn Life Insurance Company, Downers Grove, Ill., the Destination Fortifier Series offers MYG annuities in several interest rate durations with matching surrender charge schedules.
The series also has multiple liquidity options, one of which allows an annual withdrawal of up to 15% of account value after year one or immediate withdrawals of interest without incurring surrender charges, the Chicago company says...
L&HN: Dearborn National Rolls Out MYG Annuities
Issued by Fort Dearborn Life Insurance Company, Downers Grove, Ill., the Destination Fortifier Series offers MYG annuities in several interest rate durations with matching surrender charge schedules.
The series also has multiple liquidity options, one of which allows an annual withdrawal of up to 15% of account value after year one or immediate withdrawals of interest without incurring surrender charges, the Chicago company says...
L&HN: Dearborn National Rolls Out MYG Annuities
Permalink posted by markw @ 4:44 AM
Study: Indexed Annuity Complaints Keep Dropping
Complaints about indexed annuities decreased by over 45% in 2009 compared to two years prior, according to a new study.
Advantage Compendium Ltd., St. Louis, reports that finding in a report on indexed annuity consumer complaints that were coded by the National Association of Insurance Commissioners, Kansas City, Mo.
In 2009, there was one complaint about indexed annuities for every $201 million of index annuity premium, say the researchers...
L&HN: Study: Indexed Annuity Complaints Keep Dropping
Advantage Compendium Ltd., St. Louis, reports that finding in a report on indexed annuity consumer complaints that were coded by the National Association of Insurance Commissioners, Kansas City, Mo.
In 2009, there was one complaint about indexed annuities for every $201 million of index annuity premium, say the researchers...
L&HN: Study: Indexed Annuity Complaints Keep Dropping
Permalink posted by markw @ 4:41 AM
UK: Faster Pension Annuity transfers times promised
An increasing number of pension providers have been joining a scheme which ensures that waiting times for transfers is reduced. So far the scheme has seen transfer times drop by nearly one third. At the end of 2009 there were 16 insurers on board the “options” scheme, which equates to 94% of UK insurers, according to the Association of British Insurers (ABI). The initiative was launched early in 2009 and was designed to speed up annuity transfer times, which can be frustrating for annuitants and providers.
One case we noted saw one poor annuitant wait an exasperating two years for the funds to be transferred...
Annuity Rates (UK): Faster Pension Annuity transfers times promised
One case we noted saw one poor annuitant wait an exasperating two years for the funds to be transferred...
Annuity Rates (UK): Faster Pension Annuity transfers times promised
Permalink posted by markw @ 4:40 AM
Wednesday, March 17, 2010
AIG Draws $2.2 Billion More From Treasury to Bolster Units
American International Group Inc., the insurer rescued by the U.S., drew $2.2 billion more from a Treasury Department facility to bolster property-casualty units that will be the core of a scaled-back company.
AIG used the cash to redeem securities held by insurance subsidiaries, improving liquidity and a measure of capital adequacy watched by rating firms and regulators, said Mark Herr, a spokesman for the New York-based firm. The company owes more than $70 billion on Federal Reserve and Treasury facilities...
Business Week: AIG Draws $2.2 Billion More From Treasury to Bolster Units
AIG used the cash to redeem securities held by insurance subsidiaries, improving liquidity and a measure of capital adequacy watched by rating firms and regulators, said Mark Herr, a spokesman for the New York-based firm. The company owes more than $70 billion on Federal Reserve and Treasury facilities...
Business Week: AIG Draws $2.2 Billion More From Treasury to Bolster Units
Permalink posted by markw @ 5:06 AM
Ten Questions To Ask When Hiring A Financial Advisor
Do your homework before you hire someone to oversee your money. You and your advisor will both be happier in the long term...
Forbes: Ten Questions To Ask When Hiring A Financial Advisor
Forbes: Ten Questions To Ask When Hiring A Financial Advisor
Permalink posted by markw @ 4:43 AM
Momentum for Annuities in 401(k)s Builds
More retirement think tanks are getting on board with the idea of including annuities in 401(k) plans, but so far, only a handful of large employers have this as an option... “They are complicated,” Alicia H. Munnell, director of the Center for Retirement Research at Boston College explains. “And [if] you hand over a bunch of your hard-earned cash and go out on the street and get hit by a bus, it’s gone.”
Further, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
Financial Planning: Momentum for Annuities in 401(k)s Builds
Further, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson...
Financial Planning: Momentum for Annuities in 401(k)s Builds
Permalink posted by markw @ 4:41 AM
Ameriprise surprise: Firm to open platform to outside annuity providers
In a bid to lure more independent reps, the B-D soon will allow advisers to sell VAs created by Axa, Lincoln National and MetLife
Breaking with its longtime strategy, Ameriprise Financial Inc. soon will open its brokerage platform to allow its 12,000 representatives and advisers to sell variable annuities from outside providers. Until now, Ameriprise has confined its reps to selling the firm's own proprietary VA investments.
While no timetable for the expansion has been set, a number of sources familiar with the plan said it's likely to occur by the end of the second quarter. Most Ameriprise advisers now are limited to selling variable annuities created by RiverSource Investments LLC, the company's proprietary mutual funds, annuities and other investment products...
Investment News: Ameriprise surprise: Firm to open platform to outside annuity providers
Breaking with its longtime strategy, Ameriprise Financial Inc. soon will open its brokerage platform to allow its 12,000 representatives and advisers to sell variable annuities from outside providers. Until now, Ameriprise has confined its reps to selling the firm's own proprietary VA investments.
While no timetable for the expansion has been set, a number of sources familiar with the plan said it's likely to occur by the end of the second quarter. Most Ameriprise advisers now are limited to selling variable annuities created by RiverSource Investments LLC, the company's proprietary mutual funds, annuities and other investment products...
Investment News: Ameriprise surprise: Firm to open platform to outside annuity providers
Permalink posted by markw @ 4:39 AM
SEC Censures Gilman Ciocia for Annuity Sales to Seniors
The Securities and Exchange Commission has censured Gilman Ciocia and its Prime Capital Services unit for misrepresenting the variable annuities sold to senior citizens in South Florida.
In an order issued Tuesday, the SEC found that from approximately November 1999 through February 2007, PCS, a broker-dealer that Gilman Ciocia acquired in 1999, offered and sold variable annuities that were unsuitable investments for elderly customers due to the customers' ages, liquidity and investment objectives...
WebCPA: SEC Censures Gilman Ciocia for Annuity Sales to Seniors
In an order issued Tuesday, the SEC found that from approximately November 1999 through February 2007, PCS, a broker-dealer that Gilman Ciocia acquired in 1999, offered and sold variable annuities that were unsuitable investments for elderly customers due to the customers' ages, liquidity and investment objectives...
WebCPA: SEC Censures Gilman Ciocia for Annuity Sales to Seniors
Permalink posted by markw @ 4:39 AM
Tuesday, March 16, 2010
Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Centralized client service organization aimed at RIAs, B/Ds, family offices, and traders
Expanding on the positive reception advisors gave a pilot program launched last year, Fidelity Investments on March 15 announced the creation of a new client experience organization designed to meet the evolving demands of Fidelity’s advisor clients across the firm's different advisor businesses— Fidelity Institutional Wealth Services, National Financial, Fidelity Family Office Services, and Fidelity Capital Markets. The new organization will be headed by Maggie Serravalli, an executive VP who has overseen client experience for Fidelity’s Operations and Services Group since June 2007. In that role, she was responsible for the client management and client service teams of Fidelity’s brokerage business—two divisions she still maintains responsibility for in her new position...
Investment Advisor: Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Expanding on the positive reception advisors gave a pilot program launched last year, Fidelity Investments on March 15 announced the creation of a new client experience organization designed to meet the evolving demands of Fidelity’s advisor clients across the firm's different advisor businesses— Fidelity Institutional Wealth Services, National Financial, Fidelity Family Office Services, and Fidelity Capital Markets. The new organization will be headed by Maggie Serravalli, an executive VP who has overseen client experience for Fidelity’s Operations and Services Group since June 2007. In that role, she was responsible for the client management and client service teams of Fidelity’s brokerage business—two divisions she still maintains responsibility for in her new position...
Investment Advisor: Fidelity Rolls Out New Service Model for Affiliated Advisors and B/D Reps
Permalink posted by markw @ 4:59 AM
Advisors and Broker Dealers Criticize Dodd's Reform Plan
In a highly anticipated move, Senate Banking Committee Chairman Christopher Dodd, introduced his financial regulatory reform bill with a key provision on the fiduciary standard taken out.
The decision by Dodd, D-Conn., which was expected, has frustrated investor groups who want the more stringent fiduciary standard to be applied to brokers as well as to financial planners who already abide by the rule...
Financial Planning:
The decision by Dodd, D-Conn., which was expected, has frustrated investor groups who want the more stringent fiduciary standard to be applied to brokers as well as to financial planners who already abide by the rule...
Financial Planning:
Permalink posted by markw @ 4:44 AM
The 4-1-1 on 403(b) Plans
Millions of American workers save for their retirements in 401(k) and other qualified plans. However, employees of not-for-profit organizations are not eligible to use these plans, as they can only be used in the private sector. They must instead use an equivalent plan known as a 403(b) plan. These plans resemble 401(k) plans in many respects, but are specially designed for nonprofit entities. This article examines the basic characteristics of these plans and how they work...
SFgate: The 4-1-1 on 403(b) Plans
SFgate: The 4-1-1 on 403(b) Plans
Permalink posted by markw @ 4:41 AM
Judge hears arguments in annuity case
Cranston lawyer Joseph Caramadre, who is accused of recruiting terminally ill patients to line his own pockets, wants lawsuits against him dismissed.
Two national insurance companies are suing Caramadre and several others, claiming they recruited terminally ill patients to sign up for annuities. The annuities are then owned by investors... There are death benefits in the annuities that guarantee investors all their money back when the patients die, plus interest...
TurnTo10: Judge hears arguments in annuity case
Two national insurance companies are suing Caramadre and several others, claiming they recruited terminally ill patients to sign up for annuities. The annuities are then owned by investors... There are death benefits in the annuities that guarantee investors all their money back when the patients die, plus interest...
TurnTo10: Judge hears arguments in annuity case
Permalink posted by markw @ 4:40 AM
Annuities Offer Steady Income, Big Drawbacks
Insurers are pushing annuities as a way to protect investors from wild financial markets, but the products can be pricey and expose investors to inflation
Over the past two years, investors have been taken for a wild ride. Annuities offer a way off the roller coaster.
That, at least, is the marketing message of the insurance companies that offer an increasing array of annuity products. Independent financial advisers, however, warn that annuities are anything but a simple answer for investors in retirement...
Business Week: Annuities Offer Steady Income, Big Drawbacks
Over the past two years, investors have been taken for a wild ride. Annuities offer a way off the roller coaster.
That, at least, is the marketing message of the insurance companies that offer an increasing array of annuity products. Independent financial advisers, however, warn that annuities are anything but a simple answer for investors in retirement...
Business Week: Annuities Offer Steady Income, Big Drawbacks
Permalink posted by markw @ 4:38 AM
Monday, March 15, 2010
BNY Mellon and CII launch online adviser RDR tools
BNY Mellon Asset Management has teamed up with the Chartered Insurance Institute (CII) to launch a series of teaching tools for advisers aimed at helping them meet their retail distribution review (RDR) obligations.
In collaboration with the CII, BNY Mellon Asset Management has launched a series of online modules aimed at helping advisers prepare for their exams...
FT Adviser: BNY Mellon and CII launch online adviser RDR tools
In collaboration with the CII, BNY Mellon Asset Management has launched a series of online modules aimed at helping advisers prepare for their exams...
FT Adviser: BNY Mellon and CII launch online adviser RDR tools
Permalink posted by markw @ 7:33 AM
Do you need mortgage protection insurance?
Odds are if you're paying a mortgage, you've received offers for mortgage protection insurance. It comes in several forms, but it typically covers your mortgage if you lose your job or become disabled, or it pays off your mortgage when you die.
Would you benefit from mortgage protection insurance? Or is it just another way for your mortgage company to siphon extra money out of your wallet each month while protecting itself upon your death?
The answer depends on your health, financial situation and what you want to happen when you die...
Bankrate: Do you need mortgage protection insurance?
Would you benefit from mortgage protection insurance? Or is it just another way for your mortgage company to siphon extra money out of your wallet each month while protecting itself upon your death?
The answer depends on your health, financial situation and what you want to happen when you die...
Bankrate: Do you need mortgage protection insurance?
Permalink posted by markw @ 5:44 AM
Finding Growth in Asia Insurance Market
Valuing future growth is always a challenge. If an industry is both growing and tightly regulated—the case with insurance in China and India— the task is even more difficult. American International Group Inc.'s two latest disposals in Asia provide insights for future valuations.
MetLife Inc. is paying 10 times operating profit to acquire American Life Insurance Co., or Alico, most of whose business—70% of earnings—is in Japan's slow-growing, saturated insurance market. Prudential PLC is buying AIG's American International Assurance Ltd. business at a multiple double that. The differential in multiples is the price of optimism about growth...
WSJ: Finding Growth in Asia Insurance Market
MetLife Inc. is paying 10 times operating profit to acquire American Life Insurance Co., or Alico, most of whose business—70% of earnings—is in Japan's slow-growing, saturated insurance market. Prudential PLC is buying AIG's American International Assurance Ltd. business at a multiple double that. The differential in multiples is the price of optimism about growth...
WSJ: Finding Growth in Asia Insurance Market
Permalink posted by markw @ 5:37 AM
Friday, March 12, 2010
Phoenix Index Annuity Series Includes “Look Back” Options
A new series of three fixed indexed annuities includes two “look back” accounts, which provide annual credits on a weighted basis... Issued by PHL Variable Insurance Company, a unit of The Phoenix Companies Inc., Hartford (NYSE:PNX), the policies include the Phoenix Reflections Bonus 10, Phoenix Reflections 10, and Phoenix Reflections 7 contracts.
Each is a single-premium FIA with three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on product)...
L&HIN: Phoenix Index Annuity Series Includes “Look Back” Options
Each is a single-premium FIA with three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on product)...
L&HIN: Phoenix Index Annuity Series Includes “Look Back” Options
Permalink posted by markw @ 5:14 AM
Planners Fight Back On Fiduciary Standard
Sen. Herbert Kohl has proposed a financial services bill amendment that would apply a fiduciary standard of care to all broker-dealers, registered investment advisors and financial planners who perform financial planning duties.
Kohl, D-Wis., chairman of the Senate Special Committee on Aging, would put all of those broker-dealers, RIAs and planners under the jurisdiction of a new Financial Planning Oversight Board.
The proposed amendment would affect “anybody who holds himself out to the public as a financial planner and provides, or offers to provide, directly to individuals advice with respect to the management of financial assets in not fewer than two areas of financial planning, including—investment planning, income tax planning, education planning, retirement planning, estate planning, and risk management,” according to the amendment text...
L&HIN: Planners Fight Back On Fiduciary Standard
Kohl, D-Wis., chairman of the Senate Special Committee on Aging, would put all of those broker-dealers, RIAs and planners under the jurisdiction of a new Financial Planning Oversight Board.
The proposed amendment would affect “anybody who holds himself out to the public as a financial planner and provides, or offers to provide, directly to individuals advice with respect to the management of financial assets in not fewer than two areas of financial planning, including—investment planning, income tax planning, education planning, retirement planning, estate planning, and risk management,” according to the amendment text...
L&HIN: Planners Fight Back On Fiduciary Standard
Permalink posted by markw @ 5:12 AM
Fitch Holds Conference on China's Life, Non-Life Insurance Sectors
Fitch Ratings hosted a teleconference today, March 11 on the performance of China's life and non-life insurance sectors. A replay of the conference is expected to be posted soon on the rating agency's web site at: www.fitchratings.com.
In an announcement prior to the conference Fitch said: "After years of chasing market share, Fitch believes Chinese life insurers will shift towards ensuring product quality rather than quantity - a key theme for the sector in 2010, lending support to the sector's credit profile...
Insurance Journal: Fitch Holds Conference on China's Life, Non-Life Insurance Sectors
In an announcement prior to the conference Fitch said: "After years of chasing market share, Fitch believes Chinese life insurers will shift towards ensuring product quality rather than quantity - a key theme for the sector in 2010, lending support to the sector's credit profile...
Insurance Journal: Fitch Holds Conference on China's Life, Non-Life Insurance Sectors
Permalink posted by markw @ 4:37 AM
Thursday, March 11, 2010
New York Life Sets New Record for U.S. Life Insurance Sales in 2009, Achieving $1 Billion in Agent-Sold Premium for the First Time
New York Life Insurance Company announced record U.S. life insurance sales, up 14% through all distribution channels, a stark contrast to the decline in life sales industry-wide in 2009.* In addition, the company added more than 3,600 agents in 2009, reaching a new single-year record for recruits. It was the fourth consecutive year a new record was set in agent recruitment. U.S. Life Insurance The 14% increase in U.S. life insurance sales in 2009 represents the company's best results on record. For the most part, this growth was driven by increased sales of both permanent insurance and term products. Sales by New York Life's 11,800 licensed agents increased 16%, to a new record in 2009, which marked the first year that new sales by agents exceeded $1 billion...
INN: New York Life Sets New Record for U.S. Life Insurance Sales in 2009, Achieving $1 Billion in Agent-Sold Premium for the First Time
INN: New York Life Sets New Record for U.S. Life Insurance Sales in 2009, Achieving $1 Billion in Agent-Sold Premium for the First Time
Permalink posted by markw @ 4:35 AM
Fed Shoulders AIG Loan Losses to Ease Sale of Unit to MetLife
The Federal Reserve Bank of New York and American International Group Inc. agreed to shoulder as much as $450 million in losses tied to the insurer’s Japan real estate bets as part of the sale of a division to MetLife Inc.
MetLife won an accord to split most declines on $1 billion in commercial mortgages included in the $15.5 billion purchase of the AIG unit, according to a MetLife regulatory filing and the company’s chief financial officer...
Business Week: Fed Shoulders AIG Loan Losses to Ease Sale of Unit to MetLife
MetLife won an accord to split most declines on $1 billion in commercial mortgages included in the $15.5 billion purchase of the AIG unit, according to a MetLife regulatory filing and the company’s chief financial officer...
Business Week: Fed Shoulders AIG Loan Losses to Ease Sale of Unit to MetLife
Permalink posted by markw @ 4:35 AM
Old Mutual may list one U.S. unit, sell another
U.K. insurance and investments group Old Mutual /quotes/comstock/23s!a:oml (UK:OML 121.30, -2.20, -1.78%) said Thursday it expects to list a minority shareholding in its U.S. asset management business and will explore the sale of its U.S. life insurance operations as part of a strategy to reduce its exposure to the country. The announcement came as the firm reported a net loss of 340 million pounds ($508 million) for 2009 following a profit of 441 million pounds a year earlier...
MarketWatch: Old Mutual may list one U.S. unit, sell another
MarketWatch: Old Mutual may list one U.S. unit, sell another
Permalink posted by markw @ 4:32 AM
Wednesday, March 10, 2010
Reticence about financial planning hampers women, study finds
A new survey draws a line in the sand between those who are worried about the financial markets and those who aren't.
Perhaps not surprisingly, that line is marked by gender.
MassMutual's Retirement Services Division, which conducted an online survey of more than 1,000 of its retirement plan participants between Nov. 15 and Jan. 15, reveals that while women and men were equally as optimistic relative to the market outlook, only 32.5 percent of women were confident in making their own investment decisions compared to 47.8 percent of men.
The fear could lead to a short-changed retirement for women.
"Their income isn't as large, their pensions aren't as large, their social security checks aren't as large -- and that scares them," said Rick Luedtke, a certified financial planner with Ameriprise Financial...
WTOL: Reticence about financial planning hampers women, study finds
Perhaps not surprisingly, that line is marked by gender.
MassMutual's Retirement Services Division, which conducted an online survey of more than 1,000 of its retirement plan participants between Nov. 15 and Jan. 15, reveals that while women and men were equally as optimistic relative to the market outlook, only 32.5 percent of women were confident in making their own investment decisions compared to 47.8 percent of men.
The fear could lead to a short-changed retirement for women.
"Their income isn't as large, their pensions aren't as large, their social security checks aren't as large -- and that scares them," said Rick Luedtke, a certified financial planner with Ameriprise Financial...
WTOL: Reticence about financial planning hampers women, study finds
Permalink posted by markw @ 4:55 AM
GLBs Buoy Variable Annuity Sales, But for How Long?
While sales of variable annuities declined 18% to $127 billion last year, guaranteed living benefits remained popular, with 84% of policyholders electing to buy those riders in the fourth quarter, according to LIMRA data.
Jafor Iqbal, an associate managing director at LIMRA Retirement Research, said GLBs’ continued popularity is in spite of the fact that insurers spent much of the year raising costs and paring back benefits on the variable annuities, the assets of many are underwater compared to their guarantees...
Financial Planning: GLBs Buoy Variable Annuity Sales, But for How Long?
Jafor Iqbal, an associate managing director at LIMRA Retirement Research, said GLBs’ continued popularity is in spite of the fact that insurers spent much of the year raising costs and paring back benefits on the variable annuities, the assets of many are underwater compared to their guarantees...
Financial Planning: GLBs Buoy Variable Annuity Sales, But for How Long?
Permalink posted by markw @ 4:46 AM
Vanguard lifetime income program – Single Premium Immediate Annuity Fixed Variable Annuities
The Vanguard Lifetime Income Program is a Single Premium Immediate Annuity (SPIA) offering both fixed and variable immediate annuities... This single premium immediate variable annuity Contract explained in this prospectus provides annuity payments to the Annuitant for his or her life, and, under particular options, the life of a Joint Annuitant or for a certain period of years...
Grassland Online: Vanguard lifetime income program – Single Premium Immediate Annuity Fixed Variable Annuities
Grassland Online: Vanguard lifetime income program – Single Premium Immediate Annuity Fixed Variable Annuities
Permalink posted by markw @ 4:41 AM
Fitch Amends Various Jackson National Life Insurance Co. Subsidiary Ratings
The following Fitch Ratings press releases incorrectly stated that several Jackson National Life Insurance Co. subsidiaries carry Fitch Issuer Default Ratings (IDRs):
-- 'Fitch Downgrades Prudential Plc's IDR and Debt; Affirms PAC's IFS Rating; Outlook Negative' (March 26, 2009);
-- 'Fitch Places Prudential on Watch Negative on AIA Acquisition Bid' (March 2, 2010)...
MarketWatch: Fitch Amends Various Jackson National Life Insurance Co. Subsidiary Ratings
-- 'Fitch Downgrades Prudential Plc's IDR and Debt; Affirms PAC's IFS Rating; Outlook Negative' (March 26, 2009);
-- 'Fitch Places Prudential on Watch Negative on AIA Acquisition Bid' (March 2, 2010)...
MarketWatch: Fitch Amends Various Jackson National Life Insurance Co. Subsidiary Ratings
Permalink posted by markw @ 4:37 AM
Tuesday, March 09, 2010
Iowa Insurance company fined for selling unapproved annuities
The Minnesota Department of Commerce has fined Des Moines, Iowa-based American Equity Investment Life Insurance Co. $275,000 for allegedly selling unapproved annuity contracts in the state of Minnesota.
As a result, consumers who purchased the contacts were subject to higher surrender charges and less favorable terms. The total face value of the unapproved policies sold in the state exceeds $28 million.
Minnesota law requires that any annuity contract issued to a Minnesota resident is presented on a form that has been approved by the Minnesota Department of Commerce. Between 2002 and November 2008, American Equity allegedly issued 541 annuity contracts in the state on forms that had not been approved by the department...
Hometown Source: Iowa Insurance company fined for selling unapproved annuities
As a result, consumers who purchased the contacts were subject to higher surrender charges and less favorable terms. The total face value of the unapproved policies sold in the state exceeds $28 million.
Minnesota law requires that any annuity contract issued to a Minnesota resident is presented on a form that has been approved by the Minnesota Department of Commerce. Between 2002 and November 2008, American Equity allegedly issued 541 annuity contracts in the state on forms that had not been approved by the department...
Hometown Source: Iowa Insurance company fined for selling unapproved annuities
Permalink posted by markw @ 4:53 AM
Moody's Raises Ameriprise Financial Ratings Outlook To Stable
Moody's Investors Service raised its ratings outlook on Ameriprise Financial Inc. (AMP) to stable as the financial services planning provider expects to use proceeds from the issuance of $750 million in senior notes to help refinance $800 million in debt maturing in November...
WSJ: Moody's Raises Ameriprise Financial Ratings Outlook To Stable
WSJ: Moody's Raises Ameriprise Financial Ratings Outlook To Stable
Permalink posted by markw @ 4:52 AM
California Man Accused Of Trying To Extort NY Life Insurance
A California man has been charged with trying to extort nearly $200,000 from New York Life Insurance Co. by threatening to send six million disparaging spam email messages about the company.
Anthony Digati, 52 years old, of Chino, Calif., has been charged with one count of extortion through interstate communications. He faces up to two years in prison on the charge.
It was revealed in a court appearance in California on Monday that his alleged target was New York Life...
WSJ: California Man Accused Of Trying To Extort NY Life Insurance
Anthony Digati, 52 years old, of Chino, Calif., has been charged with one count of extortion through interstate communications. He faces up to two years in prison on the charge.
It was revealed in a court appearance in California on Monday that his alleged target was New York Life...
WSJ: California Man Accused Of Trying To Extort NY Life Insurance
Permalink posted by markw @ 4:50 AM
Monday, March 08, 2010
For most RIAs, '09 proved dismal
Only five of the 50 biggest firms saw jump in discretionary assets last year
Stiff competition in the wealth management industry, combined with the effects of a volatile market, thwarted many of the nation's biggest RIA firms in their efforts to gather assets in 2009.
Of the 50 biggest registered investment advisory firms, only five had more discretionary assets on their books at the end of the year than they did at its outset, according to exclusive research conducted by RIA Database for InvestmentNews. That said, combined discretionary assets for the 50 biggest firms totaled $115.7 billion Dec. 31, up 14% from a year earlier...
Investment News: For most RIAs, '09 proved dismal
Stiff competition in the wealth management industry, combined with the effects of a volatile market, thwarted many of the nation's biggest RIA firms in their efforts to gather assets in 2009.
Of the 50 biggest registered investment advisory firms, only five had more discretionary assets on their books at the end of the year than they did at its outset, according to exclusive research conducted by RIA Database for InvestmentNews. That said, combined discretionary assets for the 50 biggest firms totaled $115.7 billion Dec. 31, up 14% from a year earlier...
Investment News: For most RIAs, '09 proved dismal
Permalink posted by markw @ 5:21 AM
The Ryan Report: Our list of top 5 questions from investors
With all due respect to David Letterman's "Top Ten" list, from time to time we assemble our own list of questions that we are most frequently asked (or should be). We hope you find these helpful:
Q. I do my own investing. Why do I need you or someone like you?
Ryan Report: The Ryan Report: Our list of top 5 questions from investors
Q. I do my own investing. Why do I need you or someone like you?
Ryan Report: The Ryan Report: Our list of top 5 questions from investors
Permalink posted by markw @ 5:20 AM
Thirtysomethings ask: 'What do we do now?'
Rocked by the recession, they are focused on debt rather than savings
Over the past year, at least six young couples have come to investment adviser Susan Spraker in desperate need of financial help. All of them have children, and the wives, for the most part, have been laid off or are stay-at-home moms. The husbands, many of whom were in real estate or financial services, have lost their jobs and are now in positions that pay far less. All of them are dealing with high amounts of mortgage debt after taking out jumbo loans for homes they couldn't really afford...
Investment News: Thirtysomethings ask: 'What do we do now?'
Over the past year, at least six young couples have come to investment adviser Susan Spraker in desperate need of financial help. All of them have children, and the wives, for the most part, have been laid off or are stay-at-home moms. The husbands, many of whom were in real estate or financial services, have lost their jobs and are now in positions that pay far less. All of them are dealing with high amounts of mortgage debt after taking out jumbo loans for homes they couldn't really afford...
Investment News: Thirtysomethings ask: 'What do we do now?'
Permalink posted by markw @ 4:58 AM
Eight big changes that will reshape the annuity biz
Number 8: 1035 exchanges will drop off...
There will be tougher rules governing annuity transfers, thereby reducing the number of permissible exchanges. As the protected value of an annuity becomes greater than the actual transferrable value, it will become impossible to match that benefit in a new product. Though premium bonuses may help raise sales, the bonuses are only fully realized if the annuity stays in force...
Investment News: Eight big changes that will reshape the annuity biz
There will be tougher rules governing annuity transfers, thereby reducing the number of permissible exchanges. As the protected value of an annuity becomes greater than the actual transferrable value, it will become impossible to match that benefit in a new product. Though premium bonuses may help raise sales, the bonuses are only fully realized if the annuity stays in force...
Investment News: Eight big changes that will reshape the annuity biz
Permalink posted by markw @ 4:33 AM
AIG makes dent in debt with sale of prized unit
American International Group Inc.'s move to sell its Asian life insurance unit to London-based Prudential P.L.C. for $35.5 billion will help build momentum for AIG to sell its remaining noncore assets, putting it in a better position to repay its government debt, say observers...
Business Insurance: AIG makes dent in debt with sale of prized unit
Business Insurance: AIG makes dent in debt with sale of prized unit
Permalink posted by markw @ 4:31 AM
Friday, March 05, 2010
Consumers' Interest in Guaranteed Living Benefits Remains Strong in 2009, LIMRA Reports
The rate of election for guaranteed living benefits (GLBs), when offered in a variable annuity (VA), was 84 percent, in the fourth quarter of 2009, according to LIMRA’s annuity study.
Consumers' Interest in Guaranteed Living Benefits Remains Strong in 2009, LIMRA Reports
Source: Insurance News Net
Consumers' Interest in Guaranteed Living Benefits Remains Strong in 2009, LIMRA Reports
Source: Insurance News Net
Permalink posted by armandn @ 12:26 PM
The New Affluent Mind
Prior to the last two years, advisors were sure that they knew what most affluent clients wanted.
And most likely, they did. Customers wanted returns, a phone call once a quarter with a status update on their portfolio and someone they could trust with their money.
But as we slowly begin to see the light at the end of this very dark and stormy tunnel, everything looks different. The wealthiest clients don’t want the same things. They’re more frightened — and much more aware — than they were before. And there may even be wealthy prospects walking in off the street that are disappointed by their previous advisors.
The New Affluent Mind
Source: Financial Planning
And most likely, they did. Customers wanted returns, a phone call once a quarter with a status update on their portfolio and someone they could trust with their money.
But as we slowly begin to see the light at the end of this very dark and stormy tunnel, everything looks different. The wealthiest clients don’t want the same things. They’re more frightened — and much more aware — than they were before. And there may even be wealthy prospects walking in off the street that are disappointed by their previous advisors.
The New Affluent Mind
Source: Financial Planning
Permalink posted by armandn @ 12:24 PM
Schwab Finds Investors Focused Again on Actively Growing Retirement Savings
According to the latest Real Life Retirement quarterly pulse survey by Charles Schwab & Co, Inc., investors still remain uncertain about the future of the economy, with more than half (54 percent) expecting another dip before the stock market settles. But investors are taking a proactive approach to future investing, with 46 percent focused on growing their retirement savings and just 29 percent on protecting, according to the survey.
Schwab Finds Investors Focused Again on Actively Growing Retirement Savings
Source: MarketWatch
Schwab Finds Investors Focused Again on Actively Growing Retirement Savings
Source: MarketWatch
Permalink posted by armandn @ 12:23 PM
Annuity FYI Endorses FDIC Insured Equity Linked CDs as Preferable to Fixed-Indexed Annuities
Annuity FYI asserts that, for most investors, equity linked CDs are a better investment than fixed-indexed annuities. Of the equity linked CDs currently on the market, Annuity FYI experts have recommended one product in particular -- the Wells Fargo WISE US Index Equity Linked CD. For specific information on Wells Fargo's equity linked CD, see Annuity FYI's "Why We Like Wells Fargo's SGI WISE US Index Equity Linked CD."
An equity linked CD is a certificate of deposit issued by a bank where the rate of return is tied to a particular stock index, like the S&P 500(R) or DJIA(R). Equity linked CDs are insured by the FDIC to the maximum amount permitted by law, so the principal is secure...
Trading Markets: Annuity FYI Endorses FDIC Insured Equity Linked CDs as Preferable to Fixed-Indexed Annuities
An equity linked CD is a certificate of deposit issued by a bank where the rate of return is tied to a particular stock index, like the S&P 500(R) or DJIA(R). Equity linked CDs are insured by the FDIC to the maximum amount permitted by law, so the principal is secure...
Trading Markets: Annuity FYI Endorses FDIC Insured Equity Linked CDs as Preferable to Fixed-Indexed Annuities
Permalink posted by markw @ 4:46 AM
NAIC Looks into Stranger Owned Annuities
The National Association of Insurance Commissioners (NAIC) today announced plans to hold a public hearing on the emergence of Stranger Originated/Owned Annuities.
The hearing will focus on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries...
INN: NAIC Looks into Stranger Owned Annuities
The hearing will focus on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries...
INN: NAIC Looks into Stranger Owned Annuities
Permalink posted by markw @ 4:44 AM
A.I.G. Moves Closer to Sale of Alico
The American International Group moved closer to the $15 billion sale of a second major life insurance unit on Thursday after the Internal Revenue Service indicated that it would rule favorably on a tax issue that had stymied the deal, people briefed on the matter said.
With the resolution of the tax issue, A.I.G. would be able to wrap up the sale of the unit, the American Life Insurance Company, known as Alico, to MetLife within days, these people said. One of them said a deal could be reached by Sunday evening...
NYT: A.I.G. Moves Closer to Sale of Alico
With the resolution of the tax issue, A.I.G. would be able to wrap up the sale of the unit, the American Life Insurance Company, known as Alico, to MetLife within days, these people said. One of them said a deal could be reached by Sunday evening...
NYT: A.I.G. Moves Closer to Sale of Alico
Permalink posted by markw @ 4:37 AM
Thursday, March 04, 2010
Breakfast Briefing: National Flood Insurance Program extended; Employment for Adult Males at Record Lows; Paul Ryan v. the President...
• National Flood Insurance Program extended to March 28 - ifawebnews
• Employment for Adult Males is at Record Lows - ritholtz
• Paul Ryan v. the President - online.wsj
• Boston Bridal Show Was Massive Scam That Duped Over 6,000 Victims - consumerist
• Greece Cuts, Germany says "no aid", IMF Next? - calculatedriskblog
• The Federal Reserve Explains... The Federal Reserve In One Easy, Retard-Accessible Video - zerohedge
• Insurance companies criticized as Obama calls for final vote on reform - ifawebnews
• Oops: Moody's Puts National Bank Of Greece (And Four Other Banks) On Downgrade Review - zerohedge
• Court upholds branch office manager's win against Hilliard - investmentnews
• Fed's Beige Book: Continued expansion, but snowstorms held back activity - calculatedriskblog
• Interest rates fall as 59.9% APR credit card goes away - foxbusiness
• Fed's Lockhart: Incoming Data lines up with Modest Recovery Scenario - calculatedriskblog
• Paul D. Ryan: Dissecting the Real Cost of ObamaCare - online.wsj
• Obama Calls for Simple Majority Vote on Health Care - cnbc
• MedPAC to U.S. Congress: Reduce Government Payments to Medicare Advantage Plans - insurancenewsnet
• Do Accelerated Tax Refunds Explain Year-To-Date Consumer Strength And Record Low Government Tax Withholdings? - zerohedge
• EU Debt Crisis - Greece Wants EU Assurance to Cut Borrowing Costs - cnbc
• Abridged Basel II Impact On CDS, Synthetics And Specific Bank Names - zerohedge
• Read it here first: St. Louis Fed Tracks Nascent Expansion - ritholtz
• European Shares to Fall Ahead Rate Decisions - online.wsj
• Embarrassed ASPPA apologize to members who got unsolicited solicitation - investmentnews
• Evil Empire 2? Republicans' Secret Plan To Capitalize On Fear Of US Conversion To Socialism - zerohedge
• PIIGS Come To Market: Greece With €5 Billion In Ten Year Notes, Spain With €4.5 Billion Five Year Bond - zerohedge
• Protecting their hearts: 6 questions to get your clients thinking about critical illness insurance - Critical Illness - Life Insurance Selling - lifeinsuranceselling
• Make Markets Be Markets - ritholtz
• Fed Interest Rates: Fed Defend Their Role as Regulator, Reiterate Low Rates - cnbc
• A Sign of Spring in Housing? - cnbc
• Government keeps urging big banks to lend more - Mar. 3, 2010 - money.cnn
• New York's Andrew Cuomo Is 'Father of the Subprime Crisis', Dangerous to NY: Bove - cnbc
• Presidential Reunion: Consumer Financial Protection Agency - ritholtz
• Employment for Adult Males is at Record Lows - ritholtz
• Paul Ryan v. the President - online.wsj
• Boston Bridal Show Was Massive Scam That Duped Over 6,000 Victims - consumerist
• Greece Cuts, Germany says "no aid", IMF Next? - calculatedriskblog
• The Federal Reserve Explains... The Federal Reserve In One Easy, Retard-Accessible Video - zerohedge
• Insurance companies criticized as Obama calls for final vote on reform - ifawebnews
• Oops: Moody's Puts National Bank Of Greece (And Four Other Banks) On Downgrade Review - zerohedge
• Court upholds branch office manager's win against Hilliard - investmentnews
• Fed's Beige Book: Continued expansion, but snowstorms held back activity - calculatedriskblog
• Interest rates fall as 59.9% APR credit card goes away - foxbusiness
• Fed's Lockhart: Incoming Data lines up with Modest Recovery Scenario - calculatedriskblog
• Paul D. Ryan: Dissecting the Real Cost of ObamaCare - online.wsj
• Obama Calls for Simple Majority Vote on Health Care - cnbc
• MedPAC to U.S. Congress: Reduce Government Payments to Medicare Advantage Plans - insurancenewsnet
• Do Accelerated Tax Refunds Explain Year-To-Date Consumer Strength And Record Low Government Tax Withholdings? - zerohedge
• EU Debt Crisis - Greece Wants EU Assurance to Cut Borrowing Costs - cnbc
• Abridged Basel II Impact On CDS, Synthetics And Specific Bank Names - zerohedge
• Read it here first: St. Louis Fed Tracks Nascent Expansion - ritholtz
• European Shares to Fall Ahead Rate Decisions - online.wsj
• Embarrassed ASPPA apologize to members who got unsolicited solicitation - investmentnews
• Evil Empire 2? Republicans' Secret Plan To Capitalize On Fear Of US Conversion To Socialism - zerohedge
• PIIGS Come To Market: Greece With €5 Billion In Ten Year Notes, Spain With €4.5 Billion Five Year Bond - zerohedge
• Protecting their hearts: 6 questions to get your clients thinking about critical illness insurance - Critical Illness - Life Insurance Selling - lifeinsuranceselling
• Make Markets Be Markets - ritholtz
• Fed Interest Rates: Fed Defend Their Role as Regulator, Reiterate Low Rates - cnbc
• A Sign of Spring in Housing? - cnbc
• Government keeps urging big banks to lend more - Mar. 3, 2010 - money.cnn
• New York's Andrew Cuomo Is 'Father of the Subprime Crisis', Dangerous to NY: Bove - cnbc
• Presidential Reunion: Consumer Financial Protection Agency - ritholtz
Permalink posted by markw @ 5:47 AM
Feds Encourage Annuities
The federal government's ostensible plan to begin selling annuities to both corporations and their employees through company-sponsored retirement plans has raised many concerns in the HR community.
The federal government seems ready to start "selling" annuity policies to American companies and their employees. The Departments of Labor and Treasury have asked for industry comment in an under-noticed "request for information" issued on Feb. 2 on how they can encourage employers to offer annuities to workers mostly with defined-contribution pension plans.
The concern -- especially after the 2008 market slide -- is that retirees are leaving the workforce with pensions that will be depleted before the end of their lives. Annuities, which both employers and employees have long turned their noses up at, are seen as a solution.
The RFI has produced some consternation in the business community, which is worried that the Obama administration might issue some sort of mandate, or de facto mandate, with regard to the inclusion of annuities in pension offerings...
HRE Online: Feds Encourage Annuities
The federal government seems ready to start "selling" annuity policies to American companies and their employees. The Departments of Labor and Treasury have asked for industry comment in an under-noticed "request for information" issued on Feb. 2 on how they can encourage employers to offer annuities to workers mostly with defined-contribution pension plans.
The concern -- especially after the 2008 market slide -- is that retirees are leaving the workforce with pensions that will be depleted before the end of their lives. Annuities, which both employers and employees have long turned their noses up at, are seen as a solution.
The RFI has produced some consternation in the business community, which is worried that the Obama administration might issue some sort of mandate, or de facto mandate, with regard to the inclusion of annuities in pension offerings...
HRE Online: Feds Encourage Annuities
Permalink posted by markw @ 4:57 AM
Symetra falls as analysts begin coverage
Symetra Financial Corp. shares dipped Wednesday as several investment banks began coverage of the insurance company at "Neutral" or similar ratings.
The Bellevue, Wash. based company operates four main businesses: medical stop loss, deferred fixed annuities, income annuities and life insurance. It began trading on Jan. 22 at $12. Warren Buffett's Berkshire Hathaway Inc. retained a stake in the company...
AP: Symetra falls as analysts begin coverage
The Bellevue, Wash. based company operates four main businesses: medical stop loss, deferred fixed annuities, income annuities and life insurance. It began trading on Jan. 22 at $12. Warren Buffett's Berkshire Hathaway Inc. retained a stake in the company...
AP: Symetra falls as analysts begin coverage
Permalink posted by markw @ 4:53 AM
When Life Insurance Is More Valuable as Cash
THE children are grown. Each spouse — or a surviving spouse — has enough assets to last a lifetime. Yet a life insurance policy is still in force. It could be used to make gifts to those children now, a down payment on an inheritance, in effect.
Or, in another case, an older person with such a policy needs the money it represents not for heirs but for personal needs — perhaps to pay for long-term health care, to travel or just to make ends meet.
A life insurance policy is a financial instrument, an asset. Like all other assets, it has a value. There is not just the face value — what it will pay at the owner’s death — but some lesser amount that a buyer may pay in order to collect the face value when the insured person dies...
NYT: When Life Insurance Is More Valuable as Cash
Or, in another case, an older person with such a policy needs the money it represents not for heirs but for personal needs — perhaps to pay for long-term health care, to travel or just to make ends meet.
A life insurance policy is a financial instrument, an asset. Like all other assets, it has a value. There is not just the face value — what it will pay at the owner’s death — but some lesser amount that a buyer may pay in order to collect the face value when the insured person dies...
NYT: When Life Insurance Is More Valuable as Cash
Permalink posted by markw @ 4:50 AM
Wednesday, March 03, 2010
New Jersey man steals $942,000 from life insurance policy trustees
A New Jersey man was barred by FINRA for his role in a scheme netting he and another person $942,000, records show.
David Steven Forman, a registered representative from Voorhees, N.J., participated in the sale of a $5 million life insurance policy to a trust and took control of the policy, FINRA investigators said...
IFA Web News: New Jersey man steals $942,000 from life insurance policy trustees
David Steven Forman, a registered representative from Voorhees, N.J., participated in the sale of a $5 million life insurance policy to a trust and took control of the policy, FINRA investigators said...
IFA Web News: New Jersey man steals $942,000 from life insurance policy trustees
Permalink posted by markw @ 6:59 AM
Convergence of Life Settlements and Long Term Care: A Funding Solution Emerges
An interview with Chris Orestis, President of Life Care Funding Group
Chris Orestis, president of Life Care Funding Group, is a 15 year veteran of the insurance and long term care industries. Over the course of ten years in Washington, D.C. he worked in senior positions for the Health Insurance Association of America (HIAA--now reconstituted as AHIP), and for the American Council of Life Insurers (ACLI). His first professional exposure to the life settlement market came in 2005. Since 2007, Life Care Funding Group has been working exclusively with some of the largest national chains of nursing homes and assisted living properties across the United States. These companies have been informing families about a life settlement as a funding option if their loved one owns a life insurance policy that they are planning to surrender or lapse...
INN: Convergence of Life Settlements and Long Term Care: A Funding Solution Emerges
Chris Orestis, president of Life Care Funding Group, is a 15 year veteran of the insurance and long term care industries. Over the course of ten years in Washington, D.C. he worked in senior positions for the Health Insurance Association of America (HIAA--now reconstituted as AHIP), and for the American Council of Life Insurers (ACLI). His first professional exposure to the life settlement market came in 2005. Since 2007, Life Care Funding Group has been working exclusively with some of the largest national chains of nursing homes and assisted living properties across the United States. These companies have been informing families about a life settlement as a funding option if their loved one owns a life insurance policy that they are planning to surrender or lapse...
INN: Convergence of Life Settlements and Long Term Care: A Funding Solution Emerges
Permalink posted by markw @ 6:53 AM
LTC Shock: Retirees facing minimum $200K bill for lifetime care
And there's a 5% chance the tab could top $700K - Unexpected spikes in health care expenses can dramatically ramp up the cost of lifetime care for retirees.
A news study conducted by the Center for Retirement Research at Boston College found that a couple who are both aged 65 — and who are free of chronic disease — can expect to spend $197,000 on health care costs, including insurance premiums, out-of-pocket expenses and home-health costs, over the rest of their lives.
But the nearly $200,000 figure does not include the costs of nursing-home care, and researchers said there's a 5% risk that the present value of the uninsured health care expenses will exceed $311,000...
Investment News: LTC Shock: Retirees facing minimum $200K bill for lifetime care
A news study conducted by the Center for Retirement Research at Boston College found that a couple who are both aged 65 — and who are free of chronic disease — can expect to spend $197,000 on health care costs, including insurance premiums, out-of-pocket expenses and home-health costs, over the rest of their lives.
But the nearly $200,000 figure does not include the costs of nursing-home care, and researchers said there's a 5% risk that the present value of the uninsured health care expenses will exceed $311,000...
Investment News: LTC Shock: Retirees facing minimum $200K bill for lifetime care
Permalink posted by markw @ 6:48 AM
Suze Orman and Robert Kiyosaki in advice smackdown
Financial guru Robert Kiyosaki and talk show host Suze Orman have taken the gloves off in a public sparring match slamming each other's investment philosophies.
The first jab in the smackdown, which has been playing out on Twitter, was taken by Mr. Kiyosaki, a proponent of real estate investing. The author of “Rich Dad, Poor Dad” bashed Ms. Orman in a Tweet on Monday by saying, “No way in hell she believes what she teaches.”
Shortly after, Ms. Orman sniped back with an all capitals Tweet: “At least, I did not lead millions of people down the path to lose all of their money in real estate as you did. Shame on you.”...
Investment News: Suze Orman and Robert Kiyosaki in advice smackdown
The first jab in the smackdown, which has been playing out on Twitter, was taken by Mr. Kiyosaki, a proponent of real estate investing. The author of “Rich Dad, Poor Dad” bashed Ms. Orman in a Tweet on Monday by saying, “No way in hell she believes what she teaches.”
Shortly after, Ms. Orman sniped back with an all capitals Tweet: “At least, I did not lead millions of people down the path to lose all of their money in real estate as you did. Shame on you.”...
Investment News: Suze Orman and Robert Kiyosaki in advice smackdown
Permalink posted by markw @ 4:59 AM
Gender Plays Role in Retirement Planning
Women are more likely than men to seek help in financial planning, according to a new survey.
The survey, by MassMutual’s Retirement Services Division, found that women are almost 25 percent more likely to already work with a financial advisor than men (11.9 percent vs. 9.6 percent) and are almost 20 percent more likely than men to seek help as a result of the recent economy (34.1 percent vs. 28.8 percent)...
WebCPA: Gender Plays Role in Retirement Planning
The survey, by MassMutual’s Retirement Services Division, found that women are almost 25 percent more likely to already work with a financial advisor than men (11.9 percent vs. 9.6 percent) and are almost 20 percent more likely than men to seek help as a result of the recent economy (34.1 percent vs. 28.8 percent)...
WebCPA: Gender Plays Role in Retirement Planning
Permalink posted by markw @ 4:58 AM
Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Fixed Annuity Sales
U.S. sales of fixed annuities were an estimated $19.6 billion in fourth quarter 2009, according to data from the Beacon Research Fixed Annuity Premium Study.1 Quarterly sales were down 43% and 11% compared to fourth quarter 2008 and third quarter 2009, respectively. In calendar year 2009, total market sales were an estimated $104.3 billion, 2% below 2008.
By product type, estimated sales in fourth quarter 2009 were: book value2 - $9.0 billion; indexed - $6.9 billion; market value-adjusted (MVA) - $1.8 billion, and; fixed income3 - $2.0 billion. Results were behind the near-record levels of fourth quarter 2008. MVAs dropped 76%, book value annuities fell 47%, income annuities fell 17%, and indexed annuities declined 4%. Sequentially, income annuities posted a small 1% increase. Estimated sales shrank for the other product types: MVA, -39%; book value, -9%, and; indexed -6%. The indexed share of sales rose to an eight-quarter high of 35%, but book value annuities remained the dominant product type with a 46% share...
Newswire: Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Fixed Annuity Sales
By product type, estimated sales in fourth quarter 2009 were: book value2 - $9.0 billion; indexed - $6.9 billion; market value-adjusted (MVA) - $1.8 billion, and; fixed income3 - $2.0 billion. Results were behind the near-record levels of fourth quarter 2008. MVAs dropped 76%, book value annuities fell 47%, income annuities fell 17%, and indexed annuities declined 4%. Sequentially, income annuities posted a small 1% increase. Estimated sales shrank for the other product types: MVA, -39%; book value, -9%, and; indexed -6%. The indexed share of sales rose to an eight-quarter high of 35%, but book value annuities remained the dominant product type with a 46% share...
Newswire: Beacon's Fixed Annuity Premium Study Reports Fourth Quarter's Fixed Annuity Sales
Permalink posted by markw @ 4:56 AM
NAFA Fly-In To Promote Annuity Bill To Senators
The National Association for Fixed Annuities is planning a fly-in visit to Capitol Hill to promote S. 1389–legislation that would ensure that annuities cannot be regulated as securities... An estimated 150 members and supporters of the association will fly to Washington, D.C. March 16-17 to visit with lawmakers about that bill, says Kim O’Brien, executive director of the Milwaukee, Wisc., trade group.
The move is part of NAFA’s continuing effort to block federal initiatives, such as the Securities and Exchange Commission Rule 151A, that would treat indexed annuities as securities...
National Underwriter: NAFA Fly-In To Promote Annuity Bill To Senators
The move is part of NAFA’s continuing effort to block federal initiatives, such as the Securities and Exchange Commission Rule 151A, that would treat indexed annuities as securities...
National Underwriter: NAFA Fly-In To Promote Annuity Bill To Senators
Permalink posted by markw @ 4:55 AM
Tuesday, March 02, 2010
Briefing: Indiana saves with HSAs; Rising threat of infections unfazed by antibiotics; PIMCO's Bill Gross; Why is George Soros buying gold?
• Indiana Saves $8m, 35% on Health Costs with HSAs - mjperry
• Banker's Progress - ritholtz
• Exposing The London Bullion Market Association - zerohedge
• USPS to propose 5-day mail schedule, major cuts - Mar. 2, 2010 - money.cnn
• Rising threat of infections unfazed by antibiotics - finance.yahoo
• Fannie, Freddie and FHA REO Inventory - calculatedriskblog
• How A $5 CPM Is Really Only Worth $1 - businessinsider
• Express Scripts to Test Electronic Pill Container - online.wsj
• USPS to propose 5-day mail schedule, major cuts - Mar. 2, 2010 - money.cnn
• PIMCO's Bill Gross: Conversation over cocktails. And a debt crisis - investmentnews
• Is now the time to snag a great real estate deal? - Mar. 2, 2010 - money.cnn
• Going Green With Mutual Funds - smartmoney
• Why is George Soros buying gold if it's in a bubble? - creditwritedowns
• How Goldman Sachs Bagged Clients (via McClatchy) - ritholtz
• Greece Set to Outline New Austerity Measures Wednesday - online.wsj
• From The Rumor Bag: Financial Firms Receiving Widespread Subpoenas For Euro Shorting Collusion - zerohedge
• HealthInsuranceSort.com Provides Record Number of Health Insurance Quotes in 2009 - insurancenewsnet
• Reports: Senate nears agreement on consumer financial protection - calculatedriskblog
• Top Ten Oddball Tax Deductions - finance.yahoo
• What Were the Actual Losses in Madoff's Fraud? - ritholtz
• Slate Looks At What's Wrong With Airline Seating - consumerist
• Faber: 20% correction if S&P reaches new high - creditwritedowns
• Markets in Everything: American Freelance Programmers Posing as Foreigners to Get Jobs - mjperry
• Banker's Progress - ritholtz
• Exposing The London Bullion Market Association - zerohedge
• USPS to propose 5-day mail schedule, major cuts - Mar. 2, 2010 - money.cnn
• Rising threat of infections unfazed by antibiotics - finance.yahoo
• Fannie, Freddie and FHA REO Inventory - calculatedriskblog
• How A $5 CPM Is Really Only Worth $1 - businessinsider
• Express Scripts to Test Electronic Pill Container - online.wsj
• USPS to propose 5-day mail schedule, major cuts - Mar. 2, 2010 - money.cnn
• PIMCO's Bill Gross: Conversation over cocktails. And a debt crisis - investmentnews
• Is now the time to snag a great real estate deal? - Mar. 2, 2010 - money.cnn
• Going Green With Mutual Funds - smartmoney
• Why is George Soros buying gold if it's in a bubble? - creditwritedowns
• How Goldman Sachs Bagged Clients (via McClatchy) - ritholtz
• Greece Set to Outline New Austerity Measures Wednesday - online.wsj
• From The Rumor Bag: Financial Firms Receiving Widespread Subpoenas For Euro Shorting Collusion - zerohedge
• HealthInsuranceSort.com Provides Record Number of Health Insurance Quotes in 2009 - insurancenewsnet
• Reports: Senate nears agreement on consumer financial protection - calculatedriskblog
• Top Ten Oddball Tax Deductions - finance.yahoo
• What Were the Actual Losses in Madoff's Fraud? - ritholtz
• Slate Looks At What's Wrong With Airline Seating - consumerist
• Faber: 20% correction if S&P reaches new high - creditwritedowns
• Markets in Everything: American Freelance Programmers Posing as Foreigners to Get Jobs - mjperry
Permalink posted by markw @ 7:50 AM
What’s Holding ETFs Back from the 401(k) Market?
ETF 401(k)Eager to snatch a greater piece of the investment world’s market share, exchange traded fund (ETF) providers are turning to the trillions held in 401(k) retirement accounts as the next frontier.
More than $3.6 trillion is held in 401(k) retirement accounts, but total ETF assets in 401(k)s account for only $4 billion industrywide, writes Vaughan Scully for Investment Advisor. Only a few 401(k) plan providers currently offer ETFs as an option, and most just target small to medium-sized businesses...
ETF Trends: What’s Holding ETFs Back from the 401(k) Market?
More than $3.6 trillion is held in 401(k) retirement accounts, but total ETF assets in 401(k)s account for only $4 billion industrywide, writes Vaughan Scully for Investment Advisor. Only a few 401(k) plan providers currently offer ETFs as an option, and most just target small to medium-sized businesses...
ETF Trends: What’s Holding ETFs Back from the 401(k) Market?
Permalink posted by markw @ 6:48 AM
RIA Survey: $1 Million Not Nearly Enough for Retirement
While the average American family believes $1 million is the gold standard for retirement savings, a new survey by Scottrade Advisor Services finds that most independent advisors think this number is probably way off.
Seventy-one percent of RIAs said that the average family needs to save double or triple that amount, according to a survey by the St. Louis-based investment firm. The 2009 Registered Investment Advisor Study, which polled 226 registered investment advisors from Aug. 12 through Sept. 30, focused on the four main segments of the population: Generations Y and X, boomers and seniors.
The recommended investment goals for Generation Y (ages 18-26) are the greatest. More than three-quarters (77%) of advisors recommend a goal of at least $2 million, while more than 40% of RIAs say Generation Y should be aiming for more than $3 million in retirement funds. Generation X (ages 27-42) should save between $2 million and $3 million, according to 46% of RIAs surveyed...
Financial Planning: RIA Survey: $1 Million Not Nearly Enough for Retirement
Seventy-one percent of RIAs said that the average family needs to save double or triple that amount, according to a survey by the St. Louis-based investment firm. The 2009 Registered Investment Advisor Study, which polled 226 registered investment advisors from Aug. 12 through Sept. 30, focused on the four main segments of the population: Generations Y and X, boomers and seniors.
The recommended investment goals for Generation Y (ages 18-26) are the greatest. More than three-quarters (77%) of advisors recommend a goal of at least $2 million, while more than 40% of RIAs say Generation Y should be aiming for more than $3 million in retirement funds. Generation X (ages 27-42) should save between $2 million and $3 million, according to 46% of RIAs surveyed...
Financial Planning: RIA Survey: $1 Million Not Nearly Enough for Retirement
Permalink posted by markw @ 6:44 AM
Ernst & Young Auditors Accused in Investment Case
The Securities and Exchange Commission has instituted public administrative proceedings against two former Ernst & Young auditors who failed to uncover the misappropriation of client funds by an investment advisor they were auditing.
The proceedings were instituted against two CPAs: Gerard A.M. Oprins, 50, who had been a partner in Ernst & Young’s financial services practices group since 1995; and Wendy McNeely, 33, a former audit manager in E&Y’s financial services group who now works for another firm.
The case involves the firm’s audits of the 2004 financial statements of AA Capital Partners and its affiliated AA Capital Fund. The Chicago-based investment advisory firm managed more than $194 million for six union pension funds...
WebCPA: Ernst & Young Auditors Accused in Investment Case
The proceedings were instituted against two CPAs: Gerard A.M. Oprins, 50, who had been a partner in Ernst & Young’s financial services practices group since 1995; and Wendy McNeely, 33, a former audit manager in E&Y’s financial services group who now works for another firm.
The case involves the firm’s audits of the 2004 financial statements of AA Capital Partners and its affiliated AA Capital Fund. The Chicago-based investment advisory firm managed more than $194 million for six union pension funds...
WebCPA: Ernst & Young Auditors Accused in Investment Case
Permalink posted by markw @ 4:49 AM
How you can lose money in a money fund: Fees
If you invest in a money fund, you probably think you won't lose money.
But if your money fund is in a variable annuity, you probably lost anywhere from 1% to 3% the past 12 months — not because the funds' investments were bad, but because of additional fees the variable annuity charges.
After fees, some money fund accounts in 401(k) plans may have lost money the past 12 months for the same reason...
USA Today: How you can lose money in a money fund: Fees
But if your money fund is in a variable annuity, you probably lost anywhere from 1% to 3% the past 12 months — not because the funds' investments were bad, but because of additional fees the variable annuity charges.
After fees, some money fund accounts in 401(k) plans may have lost money the past 12 months for the same reason...
USA Today: How you can lose money in a money fund: Fees
Permalink posted by markw @ 4:48 AM
Allianz Life's MasterDex X still top of the indexed-annuity heap
Sales of the popular product helped Allianz maintain its place as the top seller
Sales of indexed annuities set a record last year, surpassing $30 billion — despite a modest 2.7% decline in sales in the fourth quarter... According to data from AnnuitySpecs.com's Indexed Sales and Market Report, sales of indexed annuities in the final quarter of the year fell to $7 billion.
That's still a healthy amount of business, though. Allianz Life Insurance Co. of North America benefited from the strong interest in indexed annuities. Buoyed by its top-selling MasterDex X product, the carrier maintained its place at the top of indexed annuity sales leader board in the fourth quarter...
Investment News: Allianz Life's MasterDex X still top of the indexed-annuity heap
Sales of indexed annuities set a record last year, surpassing $30 billion — despite a modest 2.7% decline in sales in the fourth quarter... According to data from AnnuitySpecs.com's Indexed Sales and Market Report, sales of indexed annuities in the final quarter of the year fell to $7 billion.
That's still a healthy amount of business, though. Allianz Life Insurance Co. of North America benefited from the strong interest in indexed annuities. Buoyed by its top-selling MasterDex X product, the carrier maintained its place at the top of indexed annuity sales leader board in the fourth quarter...
Investment News: Allianz Life's MasterDex X still top of the indexed-annuity heap
Permalink posted by markw @ 4:40 AM
TARP Losses Projected Lower, to $117 Billion
American International Group Inc.'s moves to sell two large life-insurance units will give a boost to the U.S. government's efforts to recoup its taxpayer-funded investments in hundreds of banks, insurers and other companies. But losses on the rescues still are expected to hit about $117 billion.
AIG said Monday it expects to raise $35.5 billion from the sale of American International Assurance Ltd. to Prudential PLC. AIG is separately expected to reach a deal to sell American Life Insurance Co. to MetLife Inc. for $15 billion. Proceeds from the two sales would pay off nearly 40% of the $130 billion...
WSJ: TARP Losses Projected Lower, to $117 Billion
AIG said Monday it expects to raise $35.5 billion from the sale of American International Assurance Ltd. to Prudential PLC. AIG is separately expected to reach a deal to sell American Life Insurance Co. to MetLife Inc. for $15 billion. Proceeds from the two sales would pay off nearly 40% of the $130 billion...
WSJ: TARP Losses Projected Lower, to $117 Billion
Permalink posted by markw @ 4:32 AM
Monday, March 01, 2010
What Happens When a Life Insurance Policy Lapses
We all get busy and let the “little things” slip through the crack sometimes. This, however, wasn’t a little thing. In the hustle and bustle of the holidays, building a new home, a second child on the way (and now here) a “little” bill was overlooked and wasn’t paid. This wasn’t my Direct TV bill or the electricity bill.. It was my annual premium for my 30 year term life insurance policy! (gasp). A month had passed before I realized that my insurance policy had lapsed. Frantically, I called the insurance company to find out what my options were. In case you ever let your life insurance policy lapse, here’s what you need to know...
Good Financial Cents: What Happens When a Life Insurance Policy Lapses
Good Financial Cents: What Happens When a Life Insurance Policy Lapses
Permalink posted by markw @ 11:54 AM
Whole-Life Insurance, Long Derided, Gets New Lease
If you haven't already, you are likely to hear the pitch soon: Whole-life insurance—the fuddy-duddy stuff your grandparents owned—was a shining star during the financial crisis... Massachusetts Mutual Life Insurance Co., New York Life Insurance Co. and others have been playing off the disappointing performance of many competing investments during the financial crisis to boost whole-life policies, which combine insurance with investments.
Thanks to conservative investments in bonds, whole life—and its cousin, universal life—delivered positive returns during the financial crisis. But before you sign up for a policy, beware: You will pay hefty premiums and, in most cases, a steep up-front commission that eats up your first-year premium, leaving little of it for investment...
WSJ: Whole-Life Insurance, Long Derided, Gets New Lease
Thanks to conservative investments in bonds, whole life—and its cousin, universal life—delivered positive returns during the financial crisis. But before you sign up for a policy, beware: You will pay hefty premiums and, in most cases, a steep up-front commission that eats up your first-year premium, leaving little of it for investment...
WSJ: Whole-Life Insurance, Long Derided, Gets New Lease
Permalink posted by markw @ 11:23 AM
Econ Links: Retails Sales Rise? Low Rates Not Helping. Green Start to March. Year of the Short Sale. Bill Gross' March Investment Outlook.
• Retail Sales Rise: Where? Let's Take a Look; Expect Nothing Less Than Panic - globaleconomicanalysis
• Long Period of Low Interest Rates Not Helping Economy - seekingalpha
• Greece Bailout Plan and Further Austerity Measures moving forward - calculatedriskblog
• Ze Germans: "Only The IMF Can Help Greece" - zerohedge
• Futures Indicate a Green Start to March - foxbusiness
• It's Looking Like the Year of the Short Sale - smartmoney
• I'm Sure Glad The Recession Ended - globaleconomicanalysis
• January Personal Income Flat, Spending Increases - calculatedriskblog
• Bill Gross' March Investment Outlook - Spread Convergence - zerohedge
• See What $1.6 Trillion In Deficits Buys? - market-ticker.denninger.net
• Estate tax expiration another blow to reeling charities - investmentnews
• Is March 9 The Day Greece Gets Its Bailout From Tim Geithner? - businessinsider
• U.S. Consumer Spending Increases More Than Forecast - businessweek
• Twenty-two bank failures this year -- and plenty more to come - investmentnews
• Whistleblower: Pursuit of Madoff Was a 'Death Sentence' - cnbc
• Long Period of Low Interest Rates Not Helping Economy - seekingalpha
• Greece Bailout Plan and Further Austerity Measures moving forward - calculatedriskblog
• Ze Germans: "Only The IMF Can Help Greece" - zerohedge
• Futures Indicate a Green Start to March - foxbusiness
• It's Looking Like the Year of the Short Sale - smartmoney
• I'm Sure Glad The Recession Ended - globaleconomicanalysis
• January Personal Income Flat, Spending Increases - calculatedriskblog
• Bill Gross' March Investment Outlook - Spread Convergence - zerohedge
• See What $1.6 Trillion In Deficits Buys? - market-ticker.denninger.net
• Estate tax expiration another blow to reeling charities - investmentnews
• Is March 9 The Day Greece Gets Its Bailout From Tim Geithner? - businessinsider
• U.S. Consumer Spending Increases More Than Forecast - businessweek
• Twenty-two bank failures this year -- and plenty more to come - investmentnews
• Whistleblower: Pursuit of Madoff Was a 'Death Sentence' - cnbc
Permalink posted by markw @ 6:52 AM
Anatomy of a scam: Jamie Lake’s story
A Kingston securities dealer tells how he stole more than $600,000 from his clients.
Jamie P. Lake was surprised by how easy it was to commit the crime.
In a little more than two years, he stole more than $600,000 from 33 people. He didn’t use the threat of force or sneak into their homes in the middle of the night to swipe their belongings.
All he needed was a computer, a little knowledge of financial markets and a lot of trust.
Lake, 37, of Scranton, was the owner of JPL Financial Services in Kingston. A registered securities broker-dealer, he at one time had more than 100 clients...
Times-Leader: Anatomy of a scam: Jamie Lake’s story
Jamie P. Lake was surprised by how easy it was to commit the crime.
In a little more than two years, he stole more than $600,000 from 33 people. He didn’t use the threat of force or sneak into their homes in the middle of the night to swipe their belongings.
All he needed was a computer, a little knowledge of financial markets and a lot of trust.
Lake, 37, of Scranton, was the owner of JPL Financial Services in Kingston. A registered securities broker-dealer, he at one time had more than 100 clients...
Times-Leader: Anatomy of a scam: Jamie Lake’s story
Permalink posted by markw @ 4:58 AM
Mixing friends, family with business is a danger
Case in point, one adviser was fired by his dad, only to find himself replaced by his own son
Clyde Wyatt managed his father's money for about 18 months before he was abruptly dumped for another adviser: His own son Chris.
“One day my father was asking some questions about investment options for some maturing certificates of deposit while my son was with me,” recalled Mr. Wyatt, managing director of Navigation Financial Group, which manages $900 million in assets. “From that moment, I lost my father as my client and he has been working with my son since. My dad likes having his grandson as his adviser better. There's no friction..."
Investment News: Mixing friends, family with business is a danger
Clyde Wyatt managed his father's money for about 18 months before he was abruptly dumped for another adviser: His own son Chris.
“One day my father was asking some questions about investment options for some maturing certificates of deposit while my son was with me,” recalled Mr. Wyatt, managing director of Navigation Financial Group, which manages $900 million in assets. “From that moment, I lost my father as my client and he has been working with my son since. My dad likes having his grandson as his adviser better. There's no friction..."
Investment News: Mixing friends, family with business is a danger
Permalink posted by markw @ 4:55 AM
Making Your 401(k) Last
Annuities and other vehicles can turn a nest egg into a stream of income payments. But employers and employees aren't rushing into these products.
In the wake of the worst stock-market performance in decades, there's a drive under way to include a new type of product in 401(k) plans—an annuity-style investment that gives retirees guaranteed income for life.
A number of insurers, eager to grab a share of the baby-boomer retirement market, are introducing these new products for retirement plans. Besides the guaranteed income, proponents say these investments offer greater fee transparency and withdrawal options than traditional annuities and can even be folded into target-date mutual funds...
WSJ: Making Your 401(k) Last
In the wake of the worst stock-market performance in decades, there's a drive under way to include a new type of product in 401(k) plans—an annuity-style investment that gives retirees guaranteed income for life.
A number of insurers, eager to grab a share of the baby-boomer retirement market, are introducing these new products for retirement plans. Besides the guaranteed income, proponents say these investments offer greater fee transparency and withdrawal options than traditional annuities and can even be folded into target-date mutual funds...
WSJ: Making Your 401(k) Last
Permalink posted by markw @ 4:44 AM
4th Annual Life Insurance-Linked Investments Conference
With the worst of the economic downturn behind us, we are ushering in a new era in the capital markets. This era, driven by more cautious investors, will emphasize transparency, simplicity and low-risk, high-yield structures. The old ways of conducting business in the life insurance-linked investments market have already been cast aside, and players on all sides will have to continue evolving their practices to remain viable market participants.
This fourth annual conference will bring together top executives to address the most pressing challenges confronting the insurance industry. Specifically, attendees will discuss the difficulties with securing funding for A/XXX requirements, including an examination of new, innovative structures likely to be seen in 2010. The conference will also focus on developments around a variety of life insurance-linked investment products, including life settlements, variable annuities, synthetic derivatives, longevity instruments and extreme mortality cat bonds. By examining best practices around creating and trading these deals, hearing what investors are looking for, and learning about improved rating agency methodologies, attendees will leave the conference with a clear understanding of how to approach the life insurance-linked investments market in 2010 and beyond...
HedgeWeek: 4th Annual Life Insurance-Linked Investments
This fourth annual conference will bring together top executives to address the most pressing challenges confronting the insurance industry. Specifically, attendees will discuss the difficulties with securing funding for A/XXX requirements, including an examination of new, innovative structures likely to be seen in 2010. The conference will also focus on developments around a variety of life insurance-linked investment products, including life settlements, variable annuities, synthetic derivatives, longevity instruments and extreme mortality cat bonds. By examining best practices around creating and trading these deals, hearing what investors are looking for, and learning about improved rating agency methodologies, attendees will leave the conference with a clear understanding of how to approach the life insurance-linked investments market in 2010 and beyond...
HedgeWeek: 4th Annual Life Insurance-Linked Investments
Permalink posted by markw @ 4:41 AM
British Company to Buy AIG's Asian Unit for $35 Billion
Prudential of Britain said Monday that it had agreed to buy American International Group’s life insurance business in Asia in a deal valued at $35.5 billion.
The sale of American International Assurance, which is based in Hong Kong and is commonly known as A.I.A., would lead to the biggest repayment yet toward the more than $180 billion that the U.S. government has invested in A.I.G. as part of a huge series of bailouts. The Federal Reserve Bank of New York, which holds preferred shares in A.I.A., would receive the first $16 billion in proceeds from a sale...
NYT: British Company to Buy AIG's Asian Unit for $35 Billion
The sale of American International Assurance, which is based in Hong Kong and is commonly known as A.I.A., would lead to the biggest repayment yet toward the more than $180 billion that the U.S. government has invested in A.I.G. as part of a huge series of bailouts. The Federal Reserve Bank of New York, which holds preferred shares in A.I.A., would receive the first $16 billion in proceeds from a sale...
NYT: British Company to Buy AIG's Asian Unit for $35 Billion
Permalink posted by markw @ 4:40 AM
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