FSP Newsbrief

Slideshow: The history of annuities

10 May 2012 16:39:04 CDT

Income annuities are an ancient idea having a major resurgence in our market. According to LIMRA, total annuity sales in 2011 reached $240 billion. In retirement planning, lifetime income annuities provide safety, security and a guarantee that annuitants will not outlive their income. But do you know the history of annuities? Did you know they have been around since the Roman Empire? Here is a pictorial history of annuities compiled from Tom Hegna's book "Pay Checks and Play Checks."

Double down on tax benefits with HSAs

10 May 2012 16:39:04 CDT

Is your client looking to reduce taxable income while potentially creating a substantial nest egg to pay for health care costs during retirement? In today's uncertain tax environment, health savings accounts can be as important as an actual retirement account to your client's financial security and even more beneficial from a tax perspective. Unlike a retirement account, HSAs allow your clients to set aside tax-deductible dollars today to provide funds for health-related expenses, and even simple cash flow, during retirement without increasing their future taxable income.

What to do now to minimize wealth transfer tax

10 May 2012 16:39:04 CDT

With the first third of 2012 now behind us, wealth managers are faced with an all-too-familiar scenario. On Dec. 31, a host of advantageous tax laws are set to expire, leaving us wondering once again what the next year will bring. This ongoing cycle of uncertainty has paralyzed both advisors and clients when it comes to implementing beneficial wealth transfer strategies. While this unstable environment can make planning very difficult, it's important to recognize that we have a limited window in which to take advantage of the current law to transfer significant wealth with little or no tax.

Investors 'overwhelmed' by 'overly complex' funds

10 May 2012 16:39:04 CDT

Investment products are "overly complex," and investors are feeling "overwhelmed" by the slew of investment choices available to them, according to the MFS Investing Sentiment Survey. "Investors have a ton of information at their fingertips, but that is not knowledge or perspective," stated William Finnegan, senior managing director of global retail marketing for MFS.

3 common mistakes of 1st-time investors

10 May 2012 16:39:04 CDT

A common mistake among first-time investors is that they lack a solid plan that will carry them through good and bad times, says Mark Holder, chief investment officer at Oklahoma-based portfolio management firm Stone Fox Capital Advisors. Along with not having a clear plan for their investments, first-time investors often lack a long-term view for their investments, says Zack Shepard, an accredited investment fiduciary analyst and financial coach with Matson Money — a Mason, Ohio-based investment advisory firm.

Courting Gen X now Plan A for advisors

10 May 2012 16:39:04 CDT

Advisors risk losing substantial portions of their client base if they don't figure out how to connect with the children of their clients, said Darla Sipolt, vice president of sales at TD Ameritrade. The children of baby boomers will inherit $18 trillion over the next 35 years, she said. "Seeing the clients' kids as prospects is absolutely critical," Sipolt said.

Cost-benefit analysis puts the brakes on Dodd-Frank

10 May 2012 16:39:04 CDT

Business lobbyists and Republican lawmakers who failed to stop the Dodd-Frank Act from becoming law have managed to put the brakes on many of its provisions a second way: cost-benefit analysis. A series of legal challenges from business groups against the SEC ended in a federal court ruling last year that the agency didn't adequately analyze the cost of a new rule. In the months since, SEC rulemaking has ground to a near-halt, with just 24 agency economists working full time to provide analyses for dozens of proposed policies, including 28 unfinished Dodd-Frank rules.

Should robots replace regulators?

10 May 2012 16:39:04 CDT

Politicians and regulators are bickering again over who should oversee the nation's 28,000 investment advisors, who manage some $50 trillion. A bill introduced in the House of Representatives would take that job away from the federal SEC and regulators in 48 states — and could hand it to the nongovernmental Financial Industry Regulatory Authority, which already oversees securities brokers and dealers.

How to land a referral without annoying a client

10 May 2012 16:39:04 CDT

Referrals are key to most advisors' business. Here are some tips to do it effectively.

FSP recognizes young financial professionals

10 May 2012 16:39:04 CDT

Do you know an FSP Volunteer 40 years of age or younger who deserves recognition for his/her professional accomplishments? Or is active in his or her community? Maybe you are! If so, nominate them or yourself for FSP's Top Leaders 40 and Under Program. Nominees will be profiled on the FSP website with their accomplishments available for viewing by all members. FSP will spread the word about these young professionals through various Society publications and media channels. Make your nominations using this submission form.