Dentists and Annuities

by admin on July 3rd, 2009

I worte this several years ago and the reason I am repeating is a good friend of mine who is a dentist has recently explained the dangerous connection about life expectancy and good dentak hygiene.   So here is a reminder…

“ Want to live a long time? One of the most overlooked secrets to accomplishing that is good dental hygiene. Many dentists will tell you that your gums are the indicators of your overall health. And I agree. Recent research is growing that shows that symptoms of periodontal disease such as inflamed or bleeding gums raise the risk of serious health problems elsewhere in the body, including heart disease, stroke, diabetes and more. My dentist recently told me that an inflamed gum means infections may be in other parts of the body and your dental system is more connected than we were once lead to believe. In people with serious gum disease, bacteria and their irritating toxins enter into the bloodstream eliciting a systemic inflammatory response. So whatever you do, do not ignore visiting your dentist and make every attempt to have good dental health. How is this connected to annuities? Ok I admit it is a stretch but here it goes…. If you maintain good dental health practices you will increase your chances of a longer life and I ask you… • What product can provide a lifetime income for as long as you live? • What product is fully guaranteed and is safe and secure? • What product……oh well I think you get it. Good dental heath and good annuities…can it get any better? “

Northwestern Mutual Sued

by admin on June 30th, 2009

www.insurancenewsnet.com reported the article below.

Disclosure: I am a retired NML agent and I can see both sides of this argument. NML will go to the wall to defend them….I know that for a fact. The agents do have a valid point…often NML agents are referred to by themselves as slaves…might be truth in that as well…I own a ton of NML life insurance and it has always outperformed what it projected….but their distribution channels are archaic and in need of join the real world…

Jun. 26–Three former financial representatives for Northwestern Mutual Life Insurance Co. filed a $200 million class-action lawsuit against the company Thursday, accusing it of denying minimum wages and overtime pay.

The lawsuit, filed in federal court in San Diego, argues that the salespeople served as employees but that the Milwaukee-based insurer misclassified them as independent contractors. Independent contractors are exempt from federal and state wage and hour laws, but employees aren’t. The company countered that financial representatives who sell its products are indeed independent contractors, not employees, and that previous court cases have affirmed that business relationship.

The lawsuit contends that when the financial representatives sold Northwestern Mutual products, they had little or no discretion and needed management approval to make decisions. It says they also were required to work more than eight hours per day and more than 40 hours per week but received no overtime compensation. The lawsuit asserts the representatives “are not and never have been independent contractors.”

“In a modern society, workers are not indentured servants — they are entitled to work a livable number of hours at a livable wage,” one of their attorneys, David Sanford, of Sanford Wittels & Heisler in Washington, D.C., said in a statement. “Northwestern Mutual has systematically denied basic minimum wage and overtime pay mandated by both the federal Fair Labor Standards Act and California’s overtime and minimum wage laws.”

Northwestern Mutual spokeswoman Jean Towell said the company is prepared to vigorously defend itself.

Great American Annuity….Finally a Product That Makes Sense….

by admin on June 29th, 2009

— The Great American Life Insurance Company….

GAFRI, a subsidiary of Great American Financial Resources, has introduced Safe Return, a new single premium fixed-indexed annuity product designed for those who desire wealth protection and growth potential.

According to the company, Safe Return is unique to the Great American Life’s product lineup in that it offers clients the security of a bailout cap and return of premium feature.

Malott Nyhart, Great American Financial Resources’ executive vice president and general manager of single premium group, said: “Today’s consumer is legitimately concerned about creating a secure financial future; we designed Safe Return with that security in mind. Both the bailout cap and return of premium features give the client much more investment protection, with the ultimate goal of providing retirement income..”

For more info call Joe Rych at 425 486-5575 or Dave Townsend at 253 381-2328

Sounds Like a Gas War too Me…

by admin on June 29th, 2009

Schwab to waive fees for its RIAs’ new clients
Move could trigger a price war among custodian rivals

The Charles Schwab Corp. is dipping into its deep pockets to help independent advisers capture business from full-service brokers.
At its Explore conference for top registered investment adviser clients last week, Schwab said it will waive commissions on electronic equity trades for new clients whom advisers attract between July 1 and the end of the year. Additionally, the firm will reimburse account transfer fees that clients have to pay their former brokers.

The commission waiver will apply to trades made by advisers’ new clients through June 30, 2010. San Francisco-based Schwab also is waiving annual maintenance fees over the next 12 months for advisers who license its portfolio management software, PortfolioCenter, which more than 2,200 of its almost 6,000 RIA clients use.

Advisers who used to be able to convert customers after two to three visits now are finding that it can take three to four times as much work to win over prospects, Mr. McCool said.

Competitors said that it is too early to tell how attractive the pricing waivers will be to independent advisers, who for the most part don’t encourage active stock trading, already enjoy reduced commissions at Schwab of $8.95 to $19.95 per trade and, in many cases, focus more on wealth management than stock trading.

Other custodians said that accommodations such as those Schwab is offering have long been made on an individual basis to select advisers and as promotions to investors who trade directly through Schwab. However, some competitors said that they are watching closely since many advisers use multiple custodians and could easily transfer new client assets to Schwab.

Here is the link: www.ccialerts.comSchwab’s move nevertheless could trigger a pricing war as rivals try to protect their bases.

1909 to 2009 a Very Short 100 Years…Wow

by admin on June 23rd, 2009

• The average life expectancy was 47 years.
• Only 14 percent of the homes had a bathtub.
• Only 8 percent of the homes had a telephone.
• There were only 8,000 cars and only 144 miles of paved roads
• The maximum speed limit in most cities was 10 mph.
• The tallest structure in the world was the Eiffel! Tower
• The average wage in 1909 was 22 cents per hour. The average worker made between $200 and $400 per year .
• A competent accountant could expect to earn $2000 per year, A dentist $2,500 per year, a veterinarian between $1,500 and $4,000 per year, and a mechanical engineer about $5,000 per year.
• More than 95 percent of all births took place at HOME .
• Ninety percent of all doctors had NO COLLEGE EDUCATION!
• Sugar cost four cents a pound.
• Eggs were fourteen cents a dozen.
• Coffee was fifteen cents a pound.

Five leading causes of death were:
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke

The American flag had 45 stars.
The population of Las Vegas, was only 30!!!!
Crossword puzzles, canned beer, and ice tea hadn’t been invented yet.
There was no Mother’s Day or Father’s Day
Two out of every 10 adults couldn’t read or write. And on 6% of all Americans had graduated from High School

S&P hits 3 insurers with negative ratings actions

by admin on June 22nd, 2009

MassMutual, NY Life, TIAA-CREF hurt by investment losses

Standard and Poor’s Ratings Services has hit Massachusetts Mutual Life Insurance Co., New York Life Insurance Co. and TIAA-CREF with negative ratings actions. The New York-based ratings agency last week put MassMutual of Springfield on credit watch with negative implications. S&P also revised its outlook on New York Life and TIAA-CREF to “negative,” from “stable.”

The three insurers are AAA-rated, but the ratings agency said that its actions are based on the negative effect that investment losses and credit impairments have had on the companies’ capital, plus S&P’s use of new stress factors in its capital-adequacy analysis.

Beneficial Financial bowing out of insurance business

by admin on June 17th, 2009

LDS Church » The Deseret Management company will stop issuing new policies, putting 150 out of work.

For more than a century, Beneficial Financial Group has been selling insurance to members of the LDS Church, heeding the call of prophet Heber J. Grant, who encouraged Beneficial’s founding to protect living souls from the suffering he and his widowed mother endured.

On Tuesday, the church-owned company announced it will discontinue issuing life insurance policies and annuities in October, setting Beneficial on a path that will put it out of business, possibly in 50 years, while putting 150 people out of work almost immediately.

Beneficial will halt sales in late August and issue the last new policies Oct. 31. It is taking the actions because the company is too small to compete against bigger, newer rivals that can offer more financial products, said Mark Willes, CEO of Deseret Management Corp., Beneficial’s parent company.

Willes said the meltdown of global financial markets also played a part. Because of its exposure to mortgage-backed securities, Beneficial was forced to write down the value of its investment portfolio by $600 million over the past two years. To offset the losses, Deseret Management has had to provide Beneficial with $594 million in additional capital, Willes said.

“So the fundamental rationale for the decision is you end up with a business that because of its size has limited economic potential, [and] is not high enough to make up for the attendant risks involved in the business,” Willes said.

Our Little Bird is Flying the Coop

by admin on June 15th, 2009

Annie graduates today.  Sort of a bittersweet day for me, I remember when she first arrived…my little girl…now she is out of high school and next year on to college.

Way to go Ann….

You are something very special

Dad

A.M. Best Revises Outlook to Negative for Issuer Credit Ratings of New York Life; Affirms Financial Strength Rating

by admin on June 12th, 2009

Personal Note from Bill Broich: The day I have to worry about New York Life would mean the world had ended.  Extremely fine companies such as NYL and The Northwestern Mutual have earned our respect and deserve our trust.  While AM Best must have valid reasons to release its last rating of “negative” it would never affect my judgment of their ability to withstand ANY POSSIBLE downfall. 

I would trust New York Life with my last dollar.

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best Co. has revised the outlook to negative from stable and affirmed the issuer credit ratings (ICR) of “aaa” and long-term debt ratings of New York Life Insurance Company and its wholly-owned subsidiaries, New York Life Insurance and Annuity Corporation and NYLIFE Insurance Company of Arizona (collectively referred to as New York Life). Concurrently, A.M. Best has affirmed the financial strength rating of A++ (Superior) of New York Life. The outlook for the FSR is stable. All companies are headquartered in New York, NY. (See below for a detailed listing of the debt ratings.)

The revised outlook for the ICRs and debt reflects the recent decline in New York Life’s capitalization primarily due to losses on public and private equity investments and fixed income credit losses, as well as the potential for additional material credit losses within the group’s general account investment portfolio. New York Life maintains significant holdings in mortgage-backed and asset-backed securities, which in aggregate were in a net unrealized loss position exceeding $5.5 billion at year-end 2008. Additionally, A.M. Best notes the group’s considerable exposure to below investment grade bonds and commercial mortgage loans. Although A.M. Best believes New York Life’s investment management capabilities are strong, the fact that high-yield default rates have increased substantially over the last 12-18 months and commercial mortgage delinquencies are beginning to materialize across the industry are key concerns in the near to medium term.

New York Life’s ratings continue to reflect its leading market position in the U.S. life insurance industry, its highly productive career agency force and its superior risk-adjusted capitalization. The ratings also consider the company’s favorable liability profile, diverse operating earnings and commitment to mutuality. New York Life enjoys the competitive advantage of its core career agency force and has led the industry in Million Dollar Round Table (MDRT) membership for 54 consecutive years. The agency channel has contributed to the company’s strong persistency and prominent market presence within the individual life market while delivering strong sales growth.

Moreover, New York Life’s sizeable inforce block of traditional life insurance and stable, long-term cash flows are the foundation of the company’s operating performance. The conservative nature of its product portfolio, together with its large block of ordinary life business, translates into one of the most creditworthy liability profiles in the industry. New York Life does not offer guaranteed minimum withdrawal benefit (GMWB) riders on variable annuities and only sells small amounts of no-lapse guarantee universal life. A.M. Best notes that over the past several years New York Life’s annuity and deposit type contract liabilities have grown faster than ordinary life reserves, which is consistent with most of its life/annuity peers.

A.M. Best also notes that New York Life is exposed to broader risks in its international operations. Although A.M. Best believes that the group’s international operations represent a source of earnings growth and diversification, they have the potential to produce results that are somewhat more volatile than the company’s domestic businesses due to the macroeconomic and political uncertainties inherent in developing markets. However, A.M. Best notes that the geographic diversity of the countries and the establishment of meaningful market share serve to mitigate potential adverse results from individual countries within these operations. Additionally, the statutory carrying value of New York Life’s international operations was approximately $233 million at year-end 2008, while its audited GAAP book value was roughly $1.8 billion.

Economics…..The New Version

by admin on June 11th, 2009

It is the month of August, on the shores of the Black Sea.  

It is raining, and the little town looks totally deserted. �
It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town.

He enters the only hotel, lays a 100 Euro note on the reception
counter, and goes to inspect the rooms upstairs in order to pick one.

The hotel proprietor takes the 100 Euro note and runs to pay his debt
to the butcher.

The Butcher takes the 100 Euro note, and runs to pay his debt to the
pig grower.

The pig grower takes the 100 Euro note, and runs to pay his debt to�
the supplier of his feed and fuel.

The supplier of feed and fuel takes the 100 Euro note and runs to pay
his debt to the town’s woman of ill repute that in these hard times,
gave her “services” on credit.

The woman runs to the hotel, and pays off her debt with the 100 Euro�
note to the hotel proprietor to pay for the rooms that she rented when she brought her friends there.

The hotel proprietor then lays the 100 Euro note back on the counter
so that the rich tourist will not suspect anything.

At that moment, the rich tourist comes down after inspecting the
rooms, and takes his 100 Euro note, after saying that he did not
like any of the rooms, and leaves town.

No one earned anything.  However, the whole town is now without
debt, and looks to the future with a lot of optimism.

And that, ladies and gentlemen, is how the United States Government is
doing business today.