Insurance Life Blog

Your 401(k): Getting Back What You Lost

2009-07-14T10:32:00.000-07:00

Leave no nest egg unscathed. That seemed to be the mission statement of the market meltdown that began in 2008.

On March 9 of this year, stocks hit a bottom, with both the S&P and the Dow closing at 12-year lows.

The market has since had better days, but halfway through the year, the S&P was still down 37% from where it was 18 months earlier.

Your 401(k): Getting Back What You Lost
Source: CNN Money

Long-Term Care Policies Can Often Fill a Financial Void

2009-07-14T10:31:00.000-07:00

Insurance is all about protecting what we have from disaster - accidents, death, disability are just a few things we insure against. But as we age, planning to have protection to pay for our care is something not as many people do. Having to pay for medical care in retirement or a nursing home is enough to wipe out savings. But it can be avoided with the addition of a long-term care policy.

Long-Term Care Policies Can Often Fill a Financial Void
Source: Insurance News Net

Grandparents Are Providing $370.7 Billion in Financial Support to Their Grandchildren, According to MetLife Mature Market Institute Survey

2009-07-14T10:30:00.000-07:00

Almost two-thirds of America’s grandparents have provided financial support to their grandchildren during the last five years, 40% for general purposes and 26% for education, according to the MetLife Mature Market Institute’s QuickPOLL, Grandparents: Generous with Money, Not with Advice. The average amount provided was $8,661, or about $370.7 billion total in the last five years. One-quarter (25%) say the economic downturn has caused them to increase the help they give to their grandchildren.

Grandparents Are Providing $370.7 Billion in Financial Support to Their Grandchildren, According to MetLife Mature Market Institute Survey
Source: Yahoo! Finance

U.S. mulling mortgage aid for unemployed

2009-07-14T06:47:00.002-07:00

President Barack Obama is mulling new ways to delay foreclosure for jobless homeowners who are unable to keep up with monthly payments, an administration official said on Monday... The official told Reuters it was reasonable for policymakers to consider options for loan forbearance -- allowing borrowers to delay, defer or skip payments -- that are more effective than those currently available in the private sector...

Bloomberg: U.S. mulling mortgage aid for unemployed

Obama’s Financial Overhaul May Force Commission Disclosure

2009-07-14T06:47:00.001-07:00

President Barack Obama’s plan to improve investor protections would force disclosure of commissions paid to brokers by mutual funds, said consumer advocate Mercer Bullard... The plan would give the U.S. Securities and Exchange Commission the power to ban practices deemed harmful to investors such as conflicts of interest and require brokers to recommend only products that are in their clients’ best interest...

Bloomberg: Obama’s Financial Overhaul May Force Commission Disclosure

Budget deficit tops $1 trillion for first time

2009-07-14T06:44:00.000-07:00

The federal deficit has topped $1 trillion for the first time ever and could grow to nearly $2 trillion by this fall, intensifying fears about higher interest rates, inflation and the strength of the dollar... The deficit has been widened by the huge sum the government has spent to ease the recession, combined with a sharp decline in tax revenues...

MyWay: Budget deficit tops $1 trillion for first time

CIT Rises on ‘Active’ Talks for U.S. Aid Before Debt Maturity

2009-07-14T04:23:00.000-07:00

CIT Group Inc. rose in European trading after the corporate lender said it’s in “active discussions” with regulators about a rescue before $1 billion of bonds mature next month... CIT jumped 27 percent to $1.71 at 11:30 a.m. in Frankfurt. The New York-based company has so far been unable to persuade the U.S. government to back its debt sales and said July 12 that it’s in discussions with regulators on a “series of measures to improve the company’s near-term liquidity position..."

Bloomberg: CIT Rises on ‘Active’ Talks for U.S. Aid Before Debt Maturity

Huntington Launches New Independent Advisor Channel

2009-07-14T04:18:00.000-07:00

The Huntington Investment Company (Huntington), a Columbus, Ohio-based service broker dealer, registered investment advisor and member FINRA/SIPC, would launch a new independent Advisor Channel to be led by Stan Evans... In addition to the new Independent Advisor Channel, the company offers investment services through its Retail Branch, Wealth Management and Institutional divisions...

BBR: Huntington Launches New Independent Advisor Channel

U.S. Sales of VAs Continue Decline in 1Q

2009-07-14T04:17:00.001-07:00

Sales of variable annuities in the United States continued their descent in the first quarter of 2009, dropping 26% from the same period a year ago to $30.4 billion, according to NAVA and Morningstar Inc... Last year was dismal for the industry, with sales dropping 15.1% to $154.8 billion for these stock-market-linked retirement income products. The Dow Jones Industrial Average in 2008 lost 33.8%, the third-worst performance in its history and the worst since suffering a drop of 52.7% in 1931...

Trading Markets: U.S. Sales of Variable Annuities Continue Decline in First Quarter of 2009

Review Shows Widespread Hike in Variable Annuity Fees

2009-07-14T04:15:00.001-07:00

A review of 10 of the largest variable annuity providers by Symetra Life Insurance found widespread increases in the fees charged to customers, reductions in guarantees and benefits offered under many riders and sometimes the elimination of an entire guaranteed living benefit offering....

Financial Planning: Review Shows Widespread Hike in Variable Annuity Fees

Former California Insurance Agent Ordered to Pay $2.1 Million

2009-07-14T04:14:00.000-07:00

Former California life insurance agent David Abraham, 48, of Santa Barbara, has pled guilty to felony grand theft and been ordered to pay $2.1 million in restitution to victims. He also was sentenced to serve 90 days in county jail plus five years probation, the California Department of Insurance reported...

Claims Journal: Former California Insurance Agent Ordered to Pay $2.1 Million

Note by 'teenage scribbler' causes sensation

2009-07-14T04:12:00.000-07:00

A research note written by a 15-year-old, who was not born when former UK chancellor Nigel Lawson dismissed London analysts as “teenage scribblers”, has become the talk of middle-aged media executives and investors... Morgan Stanley’s European media analysts asked Matthew Robson, one of the bank’s interns from a London school, to describe his friends’ media habits. His report proved to be “one of the clearest and most thought-provoking insights we have seen. So we published it,” said Edward Hill-Wood, head of the team...

FT: Note by 'teenage scribbler' causes sensation

Comparing March and May Data: Gear up for the Foreclosure Storm

2009-07-13T11:40:00.000-07:00

The Westside of Los Angeles is the perfect region for real estate neurosis. Bubbles play on human nature’s manic tendencies and nothing is more volatile than real estate in the Westside of Los Angeles. I’ve written a couple of pieces highlighting homes in Culver City and Santa Monica and discussed why these regions are prime candidates for the destruction that the Alt-A and option ARM tsunami will unleash later in 2009 and 2010...

Dr. Housing Bubble: Comparing March and May Data: Gear up for the Foreclosure Storm

Fidelity May Be Seeking New President

2009-07-13T06:39:00.000-07:00

After only two years as president of Fidelity Investments, Rodger Lawson may be looking for a new job soon, The Wall Street Journal reports.

According to The Journal, a long-time acquaintance of his said Lawson could be leaving Fidelity between now and the end of the year, but suggested that Lawson would wait untill Chairman and CEO Edward C. "Ned" Johnson III finds a suitable successor.

Fidelity May Be Seeking New President
Source: Financial-Planning.com

National Financial announces integration of its Streetscape workstation with the Thomson One Wealth Management platform

2009-07-13T06:38:00.000-07:00

Next big salvo in technology war to woo advisers: Today marks the start of another offensive in the war to attract and retain advisers through technology... National Financial Services LLC of Boston today announced the integration of its Streetscape brokerage workstation with that of the popular Thomson One Wealth Management workstation, from New York-based Thomson Reuters...

Investment News: National Financial announces integration of its Streetscape workstation with the Thomson One Wealth Management platform

Who Needs to Do a Will? You do, USA Today Says

2009-07-13T06:37:00.000-07:00

When pop music legend Michael Jackson died at age 50, he left behind three young children, millions of dollars of debt and assets that may be worth more than $1 billion. He also left behind a five-page will written in 2002 that named a guardian for his children and executors to sort out his vast and complicated estate.

We all should take such care, but survey after survey has shown that the majority of us do not.

Who Needs to Do a Will? You do, USA Today Says
Source: Insurance News Net

Treasury Proposes New Law for Investment Advisors

2009-07-13T06:36:00.000-07:00

The SEC would have the authority to require a fiduciary duty for any broker, dealer or investment advisor who gives investment advice about securities, aligning the standards based on activity. In addition, the SEC would be empowered to examine and ban forms of compensation that encourage financial intermediaries to steer investors toward products that are profitable to the intermediary, but not in the investors’ best interest.

Treasury Proposes New Law for Investment Advisors
Source: Financial-Planning.com

How to Attract Retirees and Sell Annuities in Today's Market

2009-07-13T06:30:00.000-07:00

For the past six months, my phones have been ringing off the hook with calls from insurance agents, financial advisors and financial planners who are looking for the most cost-effective ways to be in front of new prospects -- or to completely change the products and services they're offering and enter into an entirely new market. As one advisor told me, "I do not want to contact any of my existing clients because they are all angry with me because of the money they have lost in the stock market. I need to attract all new prospects." I've gotten heard comments from many of the agents, advisors and planners with whom I've spoken.

How to Attract Retirees and Sell Annuities in Today's Market
Source: Producers Web

Summers: Worst Yet to Come

2009-07-13T05:35:00.000-07:00

...the toughest economic challenge Summers faces today: the recession. Here, Summers turns sombre: “I don’t think the worst is over ... It’s very likely that more jobs will be lost. It would not be surprising if GDP has not yet reached its low. What does appear to be true is that the sense of panic in the markets and freefall in the economy has subsided and one does not have the sense of a situation as out of control as a few months ago...”

FT: Summers: Worst Yet to Come

Wanted: Execs to lead giant brokers' units

2009-07-13T05:33:00.001-07:00

UBS seeks retail chief; Morgan Stanley tables investment guru hunt: ...Reports surfaced early last week that UBS AG is on the prowl for a new top executive to run its force of more than 7,000 advisers in the United States after chief executive Oswald Grubel chose not to sell the Swiss company's wealth management business here...

Investment News: Wanted: Execs to lead giant brokers' units

Lenders in Need of Financial Help

2009-07-13T05:27:00.000-07:00

From the numbers, it sure is hard to spot the difference between General Electric’s financial arm and CIT, the lender facing a refinancing crisis as soon as next month.

Indeed, CIT’s struggles to keep afloat may give the best idea of what life would be like for GE Capital without the benefit of a deep-pocketed corporate parent and the extraordinary largess of the United States government...

NYT: Lenders in Need of Financial Help

Insurance Regulators Need Rating Option, New York’s Brooks Says

2009-07-13T05:21:00.000-07:00

Insurance regulators are too dependent on ratings firms and need alternatives to companies like Standard & Poor’s and Moody’s Investors Service, said New York’s chief industry watchdog, Kermitt Brooks...

Bloomberg: Insurance Regulators Need Rating Option, New York’s Brooks Says

Do-It-Yourself Portfolio Management

2009-07-13T05:00:00.001-07:00

If the past year's returns are as good as Wall Street's best and brightest can do, you might as well do it yourself, says Mitchell Tuchman, CEO of MarketRiders (www.marketriders.com), a new investment-advisory service for D-I-Y investors...

Barron's: Do-It-Yourself Portfolio Management

Changes Ahead for Wealth Management

2009-07-13T04:58:00.001-07:00

How have wealth managers changed since the Madoff scandal and the market meltdown? They’re going all out to develop robust due diligence and client suitability processes, according to PriceWaterhouseCoopers’ Global private banking and Wealth Management Survey of 2009. Clients want to know about operational details they rarely thought about before such as who actually has custody of their assets and what is the creditworthiness of that organization...

BIC: Changes Ahead for Wealth Management

Bill would escalate adviser oversight

2009-07-13T04:52:00.000-07:00

As the House Financial Services Committee this week begins to hash out plans to make President Obama's proposed consumer financial protection agency a reality, state-regulated investment advisers could find themselves under federal jurisdiction...

Investment News: Bill would escalate adviser oversight