US Court Orders SEC to Reconsider Annuity Rule

WASHINGTON, July 21 (Reuters)
A U.S. appeals court ordered the Securities and Exchange Commission to reconsider a rule it adopted in the final weeks of the Bush administration to expand scrutiny over annuities linked to equity indexes.
The U.S. Court of Appeals for the D.C. Circuit said in a ruling issued on Tuesday that the SEC "failed to properly consider the effect of the rule upon efficiency, competition and capital formation."
The SEC had agreed to define annuity contracts and optional annuity contracts as securities so it could better police the fast-growing market. The SEC's new definition applies to indexed annuities issued on or after Jan. 12, 2011.
The court said that the SEC had failed to rigorously analyze the impact as required by law but noted the SEC's argument that the agency believed its regulation would be better than a patchwork of state laws.
"After a more thorough review of the existing state law regime, the Commission may decide ultimately that (the regulation) Rule 151A will promote competition, efficiency, and capital formation," the court said in its decision.
The court's three-judge panel sent the rule back to the agency for reconsideration.
"We will continue to consider the procedural issue identified in the opinion," said SEC spokesman Kevin Callahan.
Annuities are insurance products in which the insurer promises to make periodic payments to the customer.
Equity indexed annuities possess insurance-product features such as a guaranteed minimum return, as well as securities elements like a return linked to an equity market. They have the potential to generate higher returns but are riskier than traditional fixed annuities.
SEC and state securities regulators have worried that the products are being sold to elderly investors, despite long accumulation periods that mean an annuity may not mature until after an elderly investor has died. Equity linked annuities also have higher surrender charges, making it difficult for investors to pull out when they need the money. (Reporting by Jeremy Pelofsky, editing by Tim Dobbyn and Gerald E. McCormick).

To view the story on Reuter's website, click here: http://www.reuters.com/article/marketsNews/idUSN2124132120090721

If you have any questions on what this means to your business; call me.


Matthew J Neuman, Vice President of Marketing
"The Advisor's Advisor"
Click Here for More on "The Advisor's Advisor"

825 S Kansas Avenue, Suite 510
Topeka, KS 66612
Toll Free: 866.363.9595
Fax: 785.271.1448
matt.neuman@advisorsexcel.com

Healthcare Reform Creates Tax Planning Demand

With comprehensive healthcare reform in progress, currently calculated at $1 trillion+, President Obama and House Democrats have proposed significant changes to the medical treatment provided many Americans. Along with healthcare change also comes tax increases for the wealthy to offset the extensive costs. This is not a political commentary or a push to one side of the isle or the other; but rather another planning opportunity for you and your business...

"All told, shifting the cost of health care, Social Security and other budget priorities toward high-income Americans would mean an actual tax rate above 45% for the wealthiest - 'levels never seen,' - Clint Stretch, Deloitte Tax LLP."


Under the House legislation, families earning between $350,000 and $500,000 would pay an additional 1% in income tax. The new tax would increase with higher salaries so that families earning more than $1 million would pay an additional 5.4%. (Full USA Today Article)

President Obama hopes to see the reform passed prior to an August recess, which means that in the very near future your ideal, top-dollar clients are going to be seeking tax planning services more than ever before! Tax deferred annuities, tax-free life insurance and other tax efficient vehicles are going to be in HUGE demand for upper income clients. Start planning today to take advantage of this opportunity. If you don't serve your current and new potential top-dollar clients, someone else reading this will.

Below are some other links/tools that may help and as always, call me for ideas on how to leverage more tax-advantaged strategies in your business.

Related Tools for Client/Prospect Meetings

Articles
House Dems to tax rich to pay for health care (AP)
Proposals tax top earners to pay for benefit programs (USA Today)
House Dems' health bill would tax rich (USA Today)

Illustrations

Tax brackets (individual)
Tax brackets (married)
Tax Rate Timeline Forecast

Matthew J Neuman, Vice President of Marketing

"The Advisor's Advisor"
Click Here for More on "The Advisor's Advisor"

825 S Kansas Avenue, Suite 510
Topeka, KS 66612
Toll Free: 866.363.9595
Fax: 785.271.1448
mailto:matt@advisorsexcel.com

Riches to Rags...Estate Planning Failures

You might dream of living like a rich and famous celebrity but you wouldn’t want the nightmare of dying like one...
If you want a phenomenal article on the importance of proper estate planning, check out this edition of Insurance News Net magazine: www.insurancenewsnetmagazine.com/may09.

Thank you for all your hard work and we'll visit soon!

Matthew J Neuman, Vice President of Marketing
Click Here for More on "The Advisor's Advisor"

825 S Kansas Avenue, Suite 510
Topeka, KS 66612
Toll Free: 866.363.9595
Fax: 785.271.1448
matt.neuman@advisorsexcel.com

The Importance of Evaluation

The Importance of Evaluation

You invest $100s or $1000s each month on your clients (think client events, contact pieces, gifts, even cold beverages in your lobby) - all to make certain they're completely satisfied with their experience and your company. But how often do you check in & ask for feedback?!?

As you're investing significant time and money into your clients, it is critical you incorporate an evaluation to measure the level of success.
Take the extra time to find out what worked, what didn't, and constantly be improving!

This week, I'll be heeding my own advice and am asking you to evaluate "Matt's Weekly Sales Adrenaline". In order to offer the most valuable sales ideas and information, your feedback is greatly appreciated! As a thank you for participating, at the end of the survey you'll find an article talking about the benefits of lifetime income annuities from the Omaha Herald.

Click HERE to take the Sales Adrenaline Survey & thank you in advance.

Matthew J Neuman, Vice President of Marketing
Click Here for More on "The Advisor's Advisor"

825 S Kansas Avenue, Suite 510
Topeka, KS 66612
Toll Free: 866.363.9595
Fax: 785.271.1448
matt.neuman@advisorsexcel.com

"Success usually comes to those who are too busy to be looking for it.”- Henry David Thoreau
US Transcendentalist Author (1817–1862)