How Safe is FDIC Insurance?

Thanks to one of my partners, Global Financial Private Capital (GPFC) for this piece. Here's an excerpt:


…but the Federal Deposit Insurance Corp. (FDIC) pays Depositors when a Bank Fails, RIGHT?

The definitive answer to this question is both Yes and No:
 Yes, the FDIC insures all deposits held within member banks and thrifts, currently up to
$250,000. As this insurance is backed by the “full faith and credit of the United States
Government”, the FDIC should be able to cover all future failures.
 No, the FDIC is required by law to maintain a Deposit Insurance Fund (DIF) of at least 1.15% of total insured deposits. Currently, DIF is approximately $20 billion in the red, a negative ratio of 0.39% of insured deposits.


To read the entire article click: http://tinyurl.com/2vzamcb


Happy selling, stay focused.

Matt
http://twitter.com/advadvisor
866.363.9595 ::: matt.neuman@advisorsexcel.com

Article - Ten Stock Market Myths that Just Won't Die

An article was recently shared with Mike Reese, our IRA College trainer and IRA Expert, about common myths of the stock market that just won't die.

These myths include the 10% market return lie, that now is the time to get in the market, the high risk equals high return ratio, timing the market and being able to outperform anything with stocks. The article defames each myth in detail and is fantastic to have in your arsenal when clients hear these myths.

To read the full article, click here: http://tinyurl.com/26hwdby.

Stay Focused.

MJN
Empowering the Country’s Best Advisors to Become Better.
Click Here for More on "The Advisor's Advisor"
1300 SW Arrowhead Dr, Ste 200 ::: Topeka, KS ::: 66612
866.363.9595 ::: matt.neuman@advisorsexcel.com

Investors Lose Faith In Big Brokers!!

A JD Power & Associates Study came across my desk this week titled “Investors Lose More Faith in Big Brokers." How often do you run across Edward Jones, RBC Wealth Management, LPL Financial, Bank of America, Merrill Lynch, Morgan Stanley, Smith Barney or Wells Fargo?!?

The study by JD Power & Associates specifically mentions the above companies and how even though the market rebounded, clients were not satisfied with their brokers. Highlights from the article:

"The general reputation of brokerages, meanwhile, continued to sink this year despite the rebound. An increasing proportion of investors said they believe their investment firm is driven more by profit concerns than focused on the customer.

"Most investors have enjoyed positive short-term gains in their portfolio as a result of the market recovery, but this has not translated into an improvement in investor sentiment toward their firm," said David Lo, investment services director at J.D. Power."

Can you use this in appointments? Can you use this in seminars?
Contact me today for a complete copy of this article.

Take care and happy selling.
MJN

Empowering the Country’s Best Advisors to Become Better.
Click Here for More on "The Advisor's Advisor"
1300 SW Arrowhead Dr, Ste 200 ::: Topeka, KS ::: 66612
866.363.9595 ::: matt.neuman@advisorsexcel.com

Schapiro Backs Off From Indexed Annuity Fight - Regulatory,Legislative and Tax Issues - Life and Health Insurance News

Schapiro Backs Off From Indexed Annuity Fight - Regulatory,Legislative and Tax Issues - Life and Health Insurance News

$328 Million in Savings

George Steinbrenner, billionaire and long term owner of the New York Yankees, left this world with a great sense of timing. Steinbrenner passed away last week, leaving his heirs possibly hundreds of millions more. Since he died in 2010, his heirs do not have to pay an estate tax on his estate, estimated to be worth $1.1 Billion.

According to an article on MSNBC:
"Forbes magazine has estimated Steinbrenner's estate at $1.1 billion. The federal estate tax in 2009 was 45 percent, with the $3.5 million per-person exemption. If he had died last year, his estate could thus have faced federal taxes of almost $500 million, depending on how the estate was structured.

That doesn't mean his heirs permanently escape all taxes related to his assets. They will still have to ultimately pay a capital gains tax if and when assets are sold. And due to a change in tax law this year, the tax would be applied to the amount by which the assets have appreciated since Steinbrenner acquired them."

Click here for the complete article: http://www.msnbc.msn.com/id/38232917/ns/business-personal_finance/

This article is a great reminder to talk to your clients about estate planning and how you can help them. Call or email anytime I can help further.

Stay Focused.
MJN

Empowering the Country’s Best Advisors to Become Better.
Click Here for More on "The Advisor's Advisor"
1300 SW Arrowhead Dr, Ste 200 ::: Topeka, KS ::: 66612
866.363.9595 ::: matt.neuman@advisorsexcel.com

Fannie Mae & Freddie Mac - Delisted from NYSE

Fannie Mae and Freddie Mac delisted from stock exchange

Below are some good conversations points to have with your clients that think the economy is turning around. Indicators may show them otherwise, including Freddie Mac and its sister company Fannie Mae have continued to rack up losses. US home loan giants Fannie Mae and Freddie Mac are to cease trading on the New York Stock Exchange (NYSE). The state-sponsored lenders were ordered to leave the exchange by the Federal Housing Finance Agency (FHFA).

They have both continued to suffer heavy losses in the aftermath of the financial crisis. Their share prices have slumped to the NYSE's minimum level of $1 a share - requiring them to try to boost their stock, or delist. The FHFA said the decision to exit the exchange did not "constitute any reflection on [Fannie Mae and Freddie Mac's] current performance or future direction".
FHFA's acting director Edward DeMarco added that delisting the shares "makes sense and fits with the goal... to preserve and conserve assets".

The two lenders, which provide mortgage finance to other lenders, were placed under government control in September 2008 after being severely hurt by the collapse in the mortgage market. Both have continued to make heavy losses, however, so far costing US taxpayers $145bn in bail-out costs.

Stay Focused.

MJN
Empowering the Country’s Best Advisors to Become Better.
Click Here for More on "The Advisor's Advisor"
1300 SW Arrowhead Dr, Ste 200 ::: Topeka, KS ::: 66612
866.363.9595 ::: matt.neuman@advisorsexcel.com

How to Throw A 4th of July Party ~ With a Twist

Are you ready to throw a 4th of July party your clients, friends and family won't soon forget? Horsesmouth.com is a fantastic website for financial advisors, giving unique ideas for improving your practice. In an article posted on the website last week, an idea for a great 4th of July party for your clients was shared.

The key part of client appreciation events is to make them memorable experiences for your clients. With that being said, think about this opening sentence from the article: "The U.S. Constitution is the foundational text of our great country and its amazing, self-renewing American Dream. It's the bible to our civil religion…The operating rules for the successful operation of the longest-running Democracy in history… Yet, I believe you'd be hard-pressed to find a copy of it in very many homes in this country. It's the most important, largely invisible document in America!"

Now onto how to use this fact at your upcoming 4th of July party... From horsesmouth.com, naturally, your party will mostly be like all other Fourth of July parties: cookout, drinks, fun and games if kids are around, sports events like horseshoes, badminton, softball, Frisbee; and fireworks. But you might want to take a few moments to call everyone together and ask them to participate in a short, patriotic moment. After all, the reason everyone is there is because we're celebrating the birth of the nation.

Here are some ideas of what might come next: Make a short speech, thank everyone for coming and tell them you wanted to take just a minute to ask everyone to reflect on the meaning of the Fourth of July. Contact me today for a few examples of what this speech may sound like. Once done with the speech, thank them for coming and offer direct them to a table where they can receive a copy of the U.S. Constitution.

Remember on this 4th of July what the celebration is all about. Take time to remember the fact with your family, your friends and your clients. And enjoy the holiday - you definitely deserve it.

Stay Focused.

MJN

Empowering the Country’s Best Advisors to Become Better.

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

1300 SW Arrowhead Dr, Ste 200 ::: Topeka, KS ::: 66612

866.363.9595 ::: matt.neuman@advisorsexcel.com