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February 2008

Cover Story
Companies and advisors flustered by a suddenly intense focus on the industry have turned their eyes to more carefully verifying the notions of suitability. But a variety of new programs and some unique efforts on the part of providers will help...


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Featured Articles


Get your business on course
Golf, despite its overwhelming popularity, is one of life's rarities. It's one of the few pastimes that doesn't have to be done particularly well to be enjoyed. While the best players in the world compete on television every week and earn vast...

Seminars done right
For many advisors, the meal-based seminar remains the very bread and butter of their practices. Careful planning, well-orchestrated content and diligent follow-up with prospects can turn the events into your most effective marketing...

Top responses to LTCI objections
Select SMA readers offer up their best counterpunches to the most common excuses prospects have for not purchasing long term care insurance. Any good article about overcoming objections to LTCI is bound to include direct quotes from producers out...

5 tips to reduce taxes on IRA earnings and, conversely, avoid penalties
1. Advisors should enable clients to maximize the nature of growing money tax-free with a Roth IRA, whether they are investing in traditional stocks and bonds or alternative assets like private stock, real estate, tax liens and others. 2. The...

How to hit a moving target
The ball is always in play for the senior advisor. Not only do clients' lives, needs and expectations steadily change but new regulations, laws, taxation, practice-management, recruitment and compliance issues commonly cloud the planning picture....


How to help high-end boomers prepare for a tax-free retirement
Roth IRAs are attractive retirement vehicles for three reasons. First, contributions and growth are tax-free, when structured properly. Second, there is no minimum required distribution at age 70½. And, finally, the death benefit is...


Columns


Up Front
If you thought 2007 was a rough year for the industry in the mainstream media, I wouldn't be counting on a reprieve in 2008. All indications point toward even further increased scrutiny on the tactics unscrupulous advisors use to sell annuities...

That's Life
�But in this world nothing can be said to be certain, except death and taxes.� � Benjamin Franklin Sunny skies and smooth sailing are not always the forecast in life. Instead, more often than not we find ourselves in turbulent waters...

Coach's Corner
The most powerful tool a salesperson can have is a third-party endorsement. Proof: verification. This is your book of evidence. In a trial, people are convicted or found not guilty based on the quality of evidence either against them or for them....

Profitable Practice
The following is based on one of Norm Trainor's clients, Ed. All of the names and telling details have been changed. As a former teacher, Ed takes great pride in teaching his clients the truths of successful investing. Yet, as his coach, I found...

LTCI Insider
Q. I know asking questions to encourage prospects to share personal experiences is an important part of the first LTCI sales appointment. Can you provide some questions that will get the client talking? A. The structure of the conversation during...

Annuity Advisor
Owners of annuities typically incur costs if they surrender an annuity prematurely. The penalty for getting out of an annuity can be as high as 25 percent, although a review of annuityspecs.com shows that the first year penalty is 10 percent or less...

Marketing Playbook
Isaac Asimov, the great science fiction writer and political philosopher, reasoned that �all things being equal, we root for our own sex, our own culture, and our own locality.� He was certainly referring to competitive events such as...

Know More
If you're a "Star Wars" or "Spider-Man" fan, you already have a glimpse of how Hollywood views the future. But let's forget George Lucas and comic books -- let''s look at your future in serving senior clients. There's something...

Practice Management
Estate planning consists in part of deciding how property should be distributed at death. Succession planning focuses on decisions about the form of ownership and the organization and operation of the business, including the eventual transfer of the...

Ethics in Action
Welcome to the Internet autobahn, where information zooms from carriers, to advisors, to FMOs, to regulators, to the media, to clients and back again — in seconds. It's a world that has rendered the following excuse obsolete: "No one told...

The Motivated Seller
Are you aware that your body language reveals your deepest feelings and hidden thoughts to total strangers? Top producers recognize the importance of nonverbal communication in the selling process and have learned to �listen with their eyes.�...

Compliance Watch
Last August, I testified at a public discussion regarding possible additions to the California Code of Insurance Regulations, dealing with annuities sales to seniors -changes that are being prompted by new powers awarded to the state's Insurance...

The Close
I recently went through a mental exercise that exemplified the power of referrals and networking. I had met with a prospective client for the first time and after the meeting my office manager innocently asked me how these fine folks came to meet...

Departments


Feedback
I handle seminars about 75 percent the way you describe [in the January cover story on Phil Cannella, "The art of the seminar". I have tried both Power-Point-type seminars and workbooks and currently combine the two. The invitation tips were most...

Seniors Speak Out
I don't have Medicare, but my elderly mother does. She's going on her third spinal surgery, and we're having trouble getting Medicare to cover it. Obviously, she lives on a very limited fixed income, and the cost of these procedures is so high that...

William A., 63Englewood, Colo."I absolutely love my advisor, so - no. I've been with him for 20 years, and he even comes to our barbecues and birthday parties, so I consider him a friend. In all that time, he's never done anything unscrupulous or...

Vitals
The retirement wave is coming. To address some of the questions that are sure to arise and provide some potential solutions, the MetLife Mature Market Institute conducted a study, �Searching for the Silver Bullet: Leading Edge Solutions for...

Two of the better-known trade associations in the insurance and financial services industry approved a merger that went into effect Jan. 1. LIMRA International and LOMA members voted to unite the organizations, and they did so with a unanimous...

Too many Americans are woefully short of proper life insurance coverage, according to groups like LIMRA and the Life and Health Insurance Foundation for Education. The reasons for this lack of coverage are manifold, and financial advisors are st...

Out & About
Thirty-four people gathered together with Unkefer & Associates employees in December to join in a Christmas celebration and mark a company milestone of topping $3 billion in annuity and life insurance sales. The event was held atop the tallest...

New Products
Retirement isn't a short-term proposition anymore. Americans can expect to live 20, 25, even 30 years after they retire, which means longterm strategies have to be implemented. If younger seniors and older boomers are comfortable with some risk in...

Three new fixed index annuities make up ING USA Annuity and Life Insurance Company's family of ING Envoy annuities. All three FIAs feature withdrawal flexibility based on what the company calls "windows of opportunity," which allow full or...

A new tool from Blue Frog Solutions, a technology solutions provider and business processing outsourcing firm, will make it possible for advisors to analyze and evaluate annuity 1035 exchanges and qualified plan replacements more easily. The...

The days after the death of a loved one are emotional and sometimes confusing. As funerals become more expensive and taking care of any final bills remains cumbersome, insurance products that help survivors grow in popularity. Lincoln Heritage...

Red Flag Reminder
Regulators and lawmakers are ramping up efforts to protect seniors in response to increasing levels of senior fraud. But rather than view these efforts as yet another regulatory burden, financial services companies should recognize opportunities...

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