Monday, June 07, 2010
Joan Aragone: Be careful of direct mailings
It's nice to be popular. Or is it?
I recently received at my home an innocuous-looking postcard mailing — one of those tear-off-and-mail-the-attached-card formats — announcing itself as an update on California long-term care.
Printed in black and white with a prepaid postage return, it looked official, as though the state were sending me information I needed to know.
An anonymous message — no name or government agency was identified — said that new legislation would limit my access to government-paid long-term care. Thus, I needed to provide long-term care insurance for myself. For more information, all I had to do was provide my signature and phone number and birth dates for myself and my spouse...
Mercury News: Joan Aragone: Be careful of direct mailings
I recently received at my home an innocuous-looking postcard mailing — one of those tear-off-and-mail-the-attached-card formats — announcing itself as an update on California long-term care.
Printed in black and white with a prepaid postage return, it looked official, as though the state were sending me information I needed to know.
An anonymous message — no name or government agency was identified — said that new legislation would limit my access to government-paid long-term care. Thus, I needed to provide long-term care insurance for myself. For more information, all I had to do was provide my signature and phone number and birth dates for myself and my spouse...
Mercury News: Joan Aragone: Be careful of direct mailings
Permalink posted by markw @ 7:28 AM 
Friday, June 04, 2010
A look at how people pay for retirement
Retirement planning isn't about "the number," but the numbers -- your assets, liabilities, expenses, and income. The more you know about those numbers, the more likely your retirement plan will become a reality instead of a pipe dream.
And a new report will help you get a better handle on at least one of those numbers: income. The average retiree depends on four sources of income in retirement, according to the latest study from the Employee Benefit Research Institute...
MarketWatch: A look at how people pay for retirement
And a new report will help you get a better handle on at least one of those numbers: income. The average retiree depends on four sources of income in retirement, according to the latest study from the Employee Benefit Research Institute...
MarketWatch: A look at how people pay for retirement
Permalink posted by markw @ 4:44 AM
I-Team: Annuity Lawsuit Update (Video)
A judge has dismissed some claims against a Cranston lawyer involved in a controversial annuities program...
Turn to 10: I-Team: Annuity Lawsuit Update (Video)
Turn to 10: I-Team: Annuity Lawsuit Update (Video)
Permalink posted by markw @ 4:43 AM
New York Eyes Annuity Withdrawal Disclosures
The New York State Insurance Department is drafting advice that would encourage annuity sellers to warn consumers about the dangers of taking early excess withdrawals.
Insurers that are selling annuities with guaranteed minimum withdrawal benefit features should provide disclosure “in the sales presentation before the contract is issued and again at the time an excess withdrawal is requested,” Michael Maffei, chief of the New York department’s Life Bureau, writes in a draft circular letter posted on the department’s website...
National Underwriter: New York Eyes Annuity Withdrawal Disclosures
Insurers that are selling annuities with guaranteed minimum withdrawal benefit features should provide disclosure “in the sales presentation before the contract is issued and again at the time an excess withdrawal is requested,” Michael Maffei, chief of the New York department’s Life Bureau, writes in a draft circular letter posted on the department’s website...
National Underwriter: New York Eyes Annuity Withdrawal Disclosures
Permalink posted by markw @ 4:42 AM
Thursday, June 03, 2010
Franklin investor William Spencer pleads guilty in Ponzi scheme
The former Franklin investment advisor accused of mail and wire fraud in connection with an alleged $1.5 million “Ponzi” scheme is awaiting sentencing after pleading guilty in federal court.
William W. Spencer, 68, entered his guilty plea May 28 before Judge William Haynes, according to court documents. The U.S. Attorney’s office for Middle Tennessee initially charged Spencer in April with six counts of mail fraud and five counts of wire fraud, alleging that from 1997 to 2009 he borrowed or solicited nearly $1.9 million from about 100 friends, clients and investors...
Nashville BizJournals: Franklin investor William Spencer pleads guilty in Ponzi scheme
William W. Spencer, 68, entered his guilty plea May 28 before Judge William Haynes, according to court documents. The U.S. Attorney’s office for Middle Tennessee initially charged Spencer in April with six counts of mail fraud and five counts of wire fraud, alleging that from 1997 to 2009 he borrowed or solicited nearly $1.9 million from about 100 friends, clients and investors...
Nashville BizJournals: Franklin investor William Spencer pleads guilty in Ponzi scheme
Permalink posted by markw @ 4:51 AM
Judge Lets Claims Stand in Annuity Case
A federal judge in Rhode Island let stand some civil legal claims by two insurance companies against an estate-planning attorney and others who used newspaper ads to recruit dozens of terminally ill people for purchases of variable annuities.
The judge, in U.S. District Court in Providence, R.I., in a Wednesday ruling let stand fraud, conspiracy and other claims against the estate-planning attorney, Joseph Caramadre, and others involved in the alleged scheme. But he dismissed other claims, ruling the insurers couldn't void the annuity contracts...
WSJ: Judge Lets Claims Stand in Annuity Case
The judge, in U.S. District Court in Providence, R.I., in a Wednesday ruling let stand fraud, conspiracy and other claims against the estate-planning attorney, Joseph Caramadre, and others involved in the alleged scheme. But he dismissed other claims, ruling the insurers couldn't void the annuity contracts...
WSJ: Judge Lets Claims Stand in Annuity Case
Permalink posted by markw @ 4:47 AM
Live long and prosper with annuities
With the right genes, longevity insurance a plus
Among the many risks retirees face is living too long and outliving their money.
Of course, the first part is a risk many would welcome. It beats the alternative.
Fortunately, there is a solution in longevity insurance, better known as annuities or life annuities. These are contractual arrangements between an "annuitant" -- yourself -- and a life insurance company. In exchange for a chunk of capital paid to the insurer, a life annuity guarantees you payments for life -- even if you live to be 120 or more...
Montreal Gazette: Live long and prosper with annuities
Among the many risks retirees face is living too long and outliving their money.
Of course, the first part is a risk many would welcome. It beats the alternative.
Fortunately, there is a solution in longevity insurance, better known as annuities or life annuities. These are contractual arrangements between an "annuitant" -- yourself -- and a life insurance company. In exchange for a chunk of capital paid to the insurer, a life annuity guarantees you payments for life -- even if you live to be 120 or more...
Montreal Gazette: Live long and prosper with annuities
Permalink posted by markw @ 4:44 AM
Wednesday, June 02, 2010
We Need A Fiduciary Standard For All
Brokers and registered investment advisors don't treat their clients the same way. Investors should end "buyer beware."
All advisors should be held to the same code of conduct. Most investors assume that they can trust their financial advisors to act in their best interest. What they don't know is that some advisors are legally required to act for them while others are not. The financial reform act is giving us the first chance since 1940 to plug this loophole and make all advisors act according to the fiduciary standard...
Forbes:
All advisors should be held to the same code of conduct. Most investors assume that they can trust their financial advisors to act in their best interest. What they don't know is that some advisors are legally required to act for them while others are not. The financial reform act is giving us the first chance since 1940 to plug this loophole and make all advisors act according to the fiduciary standard...
Forbes:
Permalink posted by markw @ 4:51 AM
DOL should not regulate generally accepted investment theories, employer groups say
Employer groups, responding to the Labor Department's proposed investment advice regulations on May 5, 2010, said that the DOL should not attempt to regulate what constitutes "generally accepted investment theories."
In the proposed investment advice rules, which were issued in March 2010, the DOL made a request for public comment on the conditions applicable to investment advice arrangements that use computer models. Specifically, the DOL sought comments on whether final regulations should: require (or proscribe) the use of specified investment theories and practices; specify minimum standards (e.g., minimum number of years of experience) for historical data that is taken into account in determining a model's expectation for the future performance of asset classes and specific investment alternatives; or expressly designate the criteria that are appropriate and objective bases for asset allocation...
CCH: DOL should not regulate generally accepted investment theories, employer groups say
In the proposed investment advice rules, which were issued in March 2010, the DOL made a request for public comment on the conditions applicable to investment advice arrangements that use computer models. Specifically, the DOL sought comments on whether final regulations should: require (or proscribe) the use of specified investment theories and practices; specify minimum standards (e.g., minimum number of years of experience) for historical data that is taken into account in determining a model's expectation for the future performance of asset classes and specific investment alternatives; or expressly designate the criteria that are appropriate and objective bases for asset allocation...
CCH: DOL should not regulate generally accepted investment theories, employer groups say
Permalink posted by markw @ 4:49 AM
Advisors Expanding Retirement Income Offerings, Survey Finds
Polarized attitudes toward annuities remain; more focus on risk
A new survey further confirms the growth opportunity for advisors from focusing on retirement income products and strategies. However, the report also notes heightened concern among brokers and RIAs with managing investment risk for investors.
The Continued Evolution of Retirement Income Delivery: An Analysis of Leading Practices in Advisor Support was released Tuesday, June 1, from consulting and research firms GDC Research and Practical Perspectives. It finds that 63% of advisors have experienced net growth in the past year in serving retirement income clients. Advisors are also finding baby boomer clients receptive to consolidating relationships. Moreover,while 91% of advisors believe they have the abilities to effectively serve new retirees, practitioners across channels are increasingly wary of how to manage investment risk for retirement income clients...
Investment Advisor: Advisors Expanding Retirement Income Offerings, Survey Finds
A new survey further confirms the growth opportunity for advisors from focusing on retirement income products and strategies. However, the report also notes heightened concern among brokers and RIAs with managing investment risk for investors.
The Continued Evolution of Retirement Income Delivery: An Analysis of Leading Practices in Advisor Support was released Tuesday, June 1, from consulting and research firms GDC Research and Practical Perspectives. It finds that 63% of advisors have experienced net growth in the past year in serving retirement income clients. Advisors are also finding baby boomer clients receptive to consolidating relationships. Moreover,while 91% of advisors believe they have the abilities to effectively serve new retirees, practitioners across channels are increasingly wary of how to manage investment risk for retirement income clients...
Investment Advisor: Advisors Expanding Retirement Income Offerings, Survey Finds
Permalink posted by markw @ 4:45 AM
Living And Death Benefit Riders: How Do They Work
The annuity contracts that were first offered by insurance carriers over a century ago were relatively simple instruments. They were designed to insure the risk of superannuation, or outliving one's income, and provided a guaranteed income stream to annuitants in return for either a lump-sum or periodic investment. But annuity contracts have become increasingly complex over the years...
SF Gate: Living And Death Benefit Riders: How Do They Work
SF Gate: Living And Death Benefit Riders: How Do They Work
Permalink posted by markw @ 4:44 AM
Tuesday, June 01, 2010
Answers on Credit Ratings Are Long Overdue
Raise your hand if you can explain why anyone still believes in credit ratings.
One of the enduring questions of the financial crisis is how the credit ratings establishment got so much so wrong for so very long. How could century-old institutions like the Moody’s Investors Service give their triple-A blessings to subprime junk?
It is time — in fact, past time — for Washington to get some answers. Because despite talk of a shake-up, the companies that dominate the ratings business hope to avoid the radical overhaul their critics are calling for...
Yahoo! Finance: Answers on Credit Ratings Are Long Overdue
One of the enduring questions of the financial crisis is how the credit ratings establishment got so much so wrong for so very long. How could century-old institutions like the Moody’s Investors Service give their triple-A blessings to subprime junk?
It is time — in fact, past time — for Washington to get some answers. Because despite talk of a shake-up, the companies that dominate the ratings business hope to avoid the radical overhaul their critics are calling for...
Yahoo! Finance: Answers on Credit Ratings Are Long Overdue
Permalink posted by markw @ 7:37 AM
Northwestern Mutual's next CEO gets it
Schlifske's mandate: Keep doing the right thing, don't mess with success
With the company he's poised to run already financially sound and top-rated in its industry, John E. Schlifske knows there's no need to come in and shake things up.
"I view my emergence as the new CEO as just another chapter in the same book," said Schlifske, who officially was elected last week to succeed Edward J. Zore as chief executive of Northwestern Mutual Life Insurance Co. on July 1...
JS Online: Northwestern Mutual's next CEO gets it
With the company he's poised to run already financially sound and top-rated in its industry, John E. Schlifske knows there's no need to come in and shake things up.
"I view my emergence as the new CEO as just another chapter in the same book," said Schlifske, who officially was elected last week to succeed Edward J. Zore as chief executive of Northwestern Mutual Life Insurance Co. on July 1...
JS Online: Northwestern Mutual's next CEO gets it
Permalink posted by markw @ 5:12 AM
Pension funds bet on death through life settlements
Allegheny and Westmoreland counties are trying to reduce their pension funds' exposure to the volatile stock market through a relatively new type of investment based on life insurance policies.
The two governments' modest investments in life settlements -- buying and selling the rights to the death benefits paid by life insurance policies covering wealthy individuals -- is not common in the pension fund world, where real estate, hedge funds, private equity and other alternative investments have been mainstays for years...
Post-Gazette: Pension funds bet on death through life settlements
The two governments' modest investments in life settlements -- buying and selling the rights to the death benefits paid by life insurance policies covering wealthy individuals -- is not common in the pension fund world, where real estate, hedge funds, private equity and other alternative investments have been mainstays for years...
Post-Gazette: Pension funds bet on death through life settlements
Permalink posted by markw @ 5:11 AM
Planners claim small victory in financial-reform legislation
GAO planning study would bring recognition on Hill, they say
A small provision buried in both the House and Senate versions of financial-reform legislation is being hailed by some as a modest but important step for the financial planning industry.
That provision calls for the Government Accountability Office, the investigative arm of Congress, to conduct a study on the oversight of financial planning. Although many planning advocates are pushing for regulation of their profession, the call for a study — and recognition on Capitol Hill that would go with it — is viewed by many as a step in the right direction...
Investment News: Planners claim small victory in financial-reform legislation
A small provision buried in both the House and Senate versions of financial-reform legislation is being hailed by some as a modest but important step for the financial planning industry.
That provision calls for the Government Accountability Office, the investigative arm of Congress, to conduct a study on the oversight of financial planning. Although many planning advocates are pushing for regulation of their profession, the call for a study — and recognition on Capitol Hill that would go with it — is viewed by many as a step in the right direction...
Investment News: Planners claim small victory in financial-reform legislation
Permalink posted by markw @ 4:38 AM
Friday, May 28, 2010
Insurance: Comparing long-term care features in life policies
Question: I am a man in my mid-sixties. You recently have been discussing a life-insurance policy that has a long-term-care feature. My agent has given me two different proposals illustrating this type of policy. What is the difference and which is better? ...
Cincinnati: Insurance: Comparing long-term care features in life policies
Cincinnati: Insurance: Comparing long-term care features in life policies
Permalink posted by markw @ 5:07 AM
Show Me the Money
Nielsen Financial uncovers what different kinds of wealthy clients typically buy and need.
All advisors want to work with wealthy clients, but targeting them is a challenge because every other advisor is pitching for the same business. Winners in this space go into a meeting with a high-net-worth prospect knowing roughly what kinds of services that prospect is likely to buy.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
To take some of the guesswork out of it, research firm Nielsen Financial analyzed the investment trends of the wealthy and found that rich people fall into different brackets based on their interests and geography. Nielsen tracks as many as 15 unique customer segments, but there are at least four that advisors should be aware of in prospecting and expanding their business relationship with clients. For example, if you have a client who fits a described demographic, but only has a fraction of his money in annuities that the average suggests, perhaps it's time to dig deeper into the client's needs...
Bank Investment Consultant: Show Me the Money
All advisors want to work with wealthy clients, but targeting them is a challenge because every other advisor is pitching for the same business. Winners in this space go into a meeting with a high-net-worth prospect knowing roughly what kinds of services that prospect is likely to buy.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
To take some of the guesswork out of it, research firm Nielsen Financial analyzed the investment trends of the wealthy and found that rich people fall into different brackets based on their interests and geography. Nielsen tracks as many as 15 unique customer segments, but there are at least four that advisors should be aware of in prospecting and expanding their business relationship with clients. For example, if you have a client who fits a described demographic, but only has a fraction of his money in annuities that the average suggests, perhaps it's time to dig deeper into the client's needs...
Bank Investment Consultant: Show Me the Money
Permalink posted by markw @ 5:02 AM
A New Dynamic
Variable annuity sales fell in 2009 as incentives to stay put in existing contracts choked off exchange growth.
New variable annuity sales rose 2.6% in the fourth quarter of 2009, although they were down 3.8% from the previous fourth quarter. Year-over-year, new sales plummeted almost 19%, from $151.6 billion in 2008 to $123.1 billion in 2009. That's the lowest annual new sales figure since 2002, when sales reached $112.4 billion after bottoming out at just over $107 billion in 2001...
Financial Planning: A New Dynamic
New variable annuity sales rose 2.6% in the fourth quarter of 2009, although they were down 3.8% from the previous fourth quarter. Year-over-year, new sales plummeted almost 19%, from $151.6 billion in 2008 to $123.1 billion in 2009. That's the lowest annual new sales figure since 2002, when sales reached $112.4 billion after bottoming out at just over $107 billion in 2001...
Financial Planning: A New Dynamic
Permalink posted by markw @ 4:59 AM
Annuities After the Deluge
Insurers are simplifying variable annuities to reduce risk and cut costs, but most investors still want living benefits.
Annuities saw the best of times (for clients) and the worst of times (for insurers) when the safety features kicked in during 2008. Insurers convinced they sold their guarantees too cheaply have rushed to repair the damage.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
They are doing this in two ways. Some are stripping back the fancy features that proliferated in the past by offering simpler, cheaper products that carry less risk for insurers. Others continue to offer fancy bells and whistles, but at a slightly higher price...
Bank Investment Consultant: Annuities After the Deluge
Annuities saw the best of times (for clients) and the worst of times (for insurers) when the safety features kicked in during 2008. Insurers convinced they sold their guarantees too cheaply have rushed to repair the damage.
Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
They are doing this in two ways. Some are stripping back the fancy features that proliferated in the past by offering simpler, cheaper products that carry less risk for insurers. Others continue to offer fancy bells and whistles, but at a slightly higher price...
Bank Investment Consultant: Annuities After the Deluge
Permalink posted by markw @ 4:45 AM
Thursday, May 27, 2010
Cash refund for life insurance
A new cash refund option will be made available through Symetra Life Insurance for its income annuity products, according to the insurer.
With the cash refund option, once the annuity owner dies, the beneficiary is able to get one lump sum that is equivalent to the unrecovered purchase payment, Symetra said. The annuity will be paid out no matter what the circumstance may be, ensuring a certain monetary amount...
US Insurance Online: Cash refund for life insurance
With the cash refund option, once the annuity owner dies, the beneficiary is able to get one lump sum that is equivalent to the unrecovered purchase payment, Symetra said. The annuity will be paid out no matter what the circumstance may be, ensuring a certain monetary amount...
US Insurance Online: Cash refund for life insurance
Permalink posted by markw @ 5:47 AM
Couple charged with life insurance fraud
A Florida couple have been charged with an insurance swindle involving the burial of a man they knew under a false name.
Laura Freed, 43, and Michael Petro, 40, were arrested Sunday, the Orlando Sentinel reported. They have been released on $125,000 bail.
Investigators say Freed and Petro took out an insurance policy on the life of Racko Petro in 1998. In 2005, Billy Urich, 59, was admitted to Heart of Florida Regional Medical Center as the 34-year-old Racko and died there of kidney failure...
UPI: Couple charged with life insurance fraud
Laura Freed, 43, and Michael Petro, 40, were arrested Sunday, the Orlando Sentinel reported. They have been released on $125,000 bail.
Investigators say Freed and Petro took out an insurance policy on the life of Racko Petro in 1998. In 2005, Billy Urich, 59, was admitted to Heart of Florida Regional Medical Center as the 34-year-old Racko and died there of kidney failure...
UPI: Couple charged with life insurance fraud
Permalink posted by markw @ 5:34 AM
Life insurance outlook once again stable
The insurance industry has moved its outlook from negative to stable, according to Moody's Industry Report.
As the economy begins to stabilize, so does the life insurance business, Moody's Investors Service said. Trends signaling the upswing of the market include higher stock prices, improved employment numbers, and more consumer spending. Life insurers are expected to soon see an improvement in net profits along with operating and investment incomes...
InsuranceCorner: Life insurance outlook once again stable
As the economy begins to stabilize, so does the life insurance business, Moody's Investors Service said. Trends signaling the upswing of the market include higher stock prices, improved employment numbers, and more consumer spending. Life insurers are expected to soon see an improvement in net profits along with operating and investment incomes...
InsuranceCorner: Life insurance outlook once again stable
Permalink posted by markw @ 5:32 AM
Fed Is Confident of AIG Payback, but Skeptics Remain
Federal overseers of American International Group Inc. and its chief executive sought to convince a skeptical congressional panel that the U.S. would recoup the record sum extended in the AIG bailout.
Federal Reserve officials said they are increasingly confident the government-controlled insurer will repay what it owes the central bank, but their Treasury Department counterparts appeared less certain...
WSJ: Fed Is Confident of AIG Payback, but Skeptics Remain
Federal Reserve officials said they are increasingly confident the government-controlled insurer will repay what it owes the central bank, but their Treasury Department counterparts appeared less certain...
WSJ: Fed Is Confident of AIG Payback, but Skeptics Remain
Permalink posted by markw @ 5:32 AM
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