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March 2021 |
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INDUSTRY NEWS
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Annuity Planning
SECURE Act May Boost Annuities. Are Advisors Ready?
This article was written by Donald Jay Korn, Contributing Writer for Financial Planning in New York.
The SECURE Act’s 10-year limit on tax deferral by retirement account beneficiaries has
attracted advisors’ attention, but that far-reaching law also includes three annuity-related
provisions — ones which make it likely that annuities will become more prevalent in company plans.
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The Case for Replacing Some Bonds With Annuities
This article was written by Neal Templin,
Freelance Writer at
The Wall Street Journal.
If you want to maximize how much you can safely spend in retirement,
some economists say, sell some of your bonds and buy lifetime income
annuities. The most efficient portfolio for retirees consists of stocks
and income annuities, says Wade Pfau, a professor of retirement income at
the American College of Financial Services. The annuities provide dependable
income, while the stocks provide growth, cover unexpected expenses and help
leave a legacy for heirs.
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Financial Planning
Sixth Annual Advisor Authority Study Reveals Pandemic and Presidential Elections Driving Volatility and Demand for Protection Solutions
Infographic distributed by Nationwide Retirement Institute®.
Nearly two-thirds of investors (61%) and more than two-thirds of advisors and financial professionals (68%)
anticipate market volatility will increase over the next 12 months. They also agree that the COVID-19 pandemic
and presidential elections are among the top three factors driving volatility and negatively impacting portfolios.
As a result, investors, advisors and financial professionals are recalibrating their financial outlook, and their
optimism continues to decline for a second year in a row, while their concerns are on the rise. These are among the
findings from Nationwide’s sixth annual Advisor Authority study, powered by the Nationwide Retirement Institute®,
reflecting the responses of more than 2,500 advisors, financial professionals and individual investors.
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Life Insurance Planning
Effective Last Month! Congress’ Gift to Life Insurance
This article was written by Charlie Gipple, CLU, ChFC
owner of CG Financial Group.
The roughly 5,500 page, $2.3 trillion “Consolidated Appropriations Act of 2021”
that was signed into law on December 27 had much more in it than $600 stimulus checks
to say the least. One area that you would be interested in is revisions to Section 7702
of the Internal Revenue Code. Effective January 1, 2021, policies can be funded at higher
levels than before, depending on the client’s age. In some cases we are talking about
seven-pay levels that are over two times higher, per dollar of death benefit, than before.
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Retirement Planning
A Better Approach to the 4% Rule for Clients’ Retirement
This article was written by Vijay Khetarpal,
President and CEO of Integrity Financial Group.
I contend that unlike the accumulation phase of life when clients and advisors are
more focused on the total amount of assets, in the distribution phase — retirement —
advisors must help clients recognize and focus instead on the amount of income needed
in golden years.
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Biden’s DOL to Implement Trump Fiduciary Rule
This article was written by John Sullivan,
Editor-In-Chief at 401k Specialist.
The Department of Labor announced that it will allow a Trump-era exemption for
investment advice fiduciaries to move forward. The exemption, “Improving Investment
Advice for Worker & Retirees,” grants certain forms of compensation for fiduciary
advice and will go into effect as scheduled on Feb. 16.
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Prohibited Transaction Exemption 2020-02, Improving Investment Advice for Workers & Retirees
The Department of Labor’s (DOL) Employee Benefits Security Administration has
confirmed that the Trump administration’s “Improving Investment Advice for Worker
& Retirees” Prohibited Transaction Exemption for investment advice fiduciaries will
go into effect as scheduled on Feb. 16, 2021.
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SECURE Act 2.0: Key Provisions Affecting Retirement Plans
This article was written by
Fred Reish,
Partner, Bruce L. Ashton,
Senior Counsel and
Stephen M. Pennartz, Associate of
Faegre Drinker Biddle & Reath LLP.
Late last year, House Ways and Means Committee Chairman Richard E. Neal (D-MA) and
Ranking Member Kevin Brady (R-TX) introduced the Securing a Strong Retirement Act of 2020
(SECURE 2.0), a bipartisan legislative proposal that includes changes designed to encourage
plan adoption, promote retirement savings, and fix certain plan administration problems. As
retirement income issues gain an expanding focus, we think it is important for broker-dealers,
RIAs and their advisors to understand changes that could impact their clients. In this post, we
comment on a number of the key provisions.
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Warren-Nadler Consumer Bankruptcy Reform Act Portends Biggest Changes To Bankruptcy Code Since 2005
Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler have introduced the Consumer Bankruptcy Reform Act (CBRA) of 2020 which
portends to be the biggest change to the U.S. Bankruptcy Code since the Bankruptcy Abuse Prevent and Consumer
Protection Act of 2005.
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Tax Planning
The Distribution of Household Income
There’s been a lot written in recent years about economic inequality—about the
disproportionate neo-Gilded Age wealth of the “top 1%” as well as the top-heavy tax
burden and the bottom-heavy government means-tested transfer payments to the poor.
This month, the Congressional Budget Office (CBO) offered a report, “The Distribution
of Household Income, 2017,” based on the most recent complete data from tax returns.
It showed changes in the division of income among Americans and in sources of income
over the 39 years from 1979 to 2017.
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Practice Management
New Rules Coming on Brokers and Other Financial Representatives Being Named as a Fiduciary or a Beneficiary
New FINRA Rule 3241 becomes effective on February 15, 2021 that
generally requires review and approval of such circumstances by member
firms so as to avoid conflicts of interest.
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ASSUMED FEDERAL RATES (AFRs)
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§7520 Rate for March is: 0.8%
Break down:
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FINANCIAL FACTS OF THE MONTH
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Bull Run
Source: BTN Research
In the nearly 11 months since bottoming on 3/23/20, the S&P 500 has gained +77.4% (total return)
through last Friday 2/19/21. The S&P 500 consists of 500 stocks chosen for market size, liquidity
and industry group representation. It is a market.
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Invest for Three Years
Source: BTN Research
Since 1926, 84% of the rolling 3-year periods for the S&P 500 index
(i.e., the 93 separate 3-years beginning 1926-28, then 1927-29, . . . 2018-20)
have produced a positive return.
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Jobless
Source: U.S. Department of Labor
The lowest (3.5%) and the highest (14.7%) unemployment rates in the United States in
the last 50 years (since 1970) both occurred in 2020, and they took place just 2 months apart.
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Now What Do I Do?
Source: Total Jobs Group Ltd.
82% of 2020 college graduates did not have a full-time job in place on the day they graduated last year.
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Stock Market
Source: BTN Research
The median annual return of the stock market over the last 45 years (1976-2020)
was a gain of +15.8% (total return). The stock market has produced a positive total
return gain in 37 of the last 45 years, i.e., 82% of the time.
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The Index to Follow
Source: Standard & Poor’s Financial Services LLC.
The S&P 500 stock index, worth $33.4 trillion as of 12/31/20,
represents 81% of the $41.2 trillion market capitalization of all
US stocks.
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The Work-World has Changed Forever
Source: Global Workplace Analytics
80% of 1,388 American workers surveyed in June and July 2020 say
they would prefer to work at least 3 days a week from home after the
pandemic is brought under control.
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Up/Down
Source: BTN Research
The S&P 500 has been up 40 of the last 50 years, i.e., 1971-2020,
gaining an average of +10.9% per year (total return). The index had
an average annual gain of +18.4% (total return) during the 40 “up
years” while losing an average of 14.8% per year (total return) during
the 10 “down years.”
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ADVISOR TOOLS
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2021 Federal Income Tax Guide
Our Tax Guide contains tax information such as:
- Individual income tax rates
- Estates and trusts tax rates
- Roth IRA contribution limits and much more...
Download the Tax Guide below:
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2021 Social Security & Medicare Reference Guide
Our Reference Guide contains information such as:
- Social Security income limits
- Medicare Parts A-D deductibles and premiums
- Medicare surtaxes and much more...
Download the Reference Guide below:
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Financial / Insurance Calculators & Websites
An extensive list of online calculators and
informational websites.
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REQUIREMENT UPDATES
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View updates by state, CE requirements and more by
clicking on the link below.
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BEST CE
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BEST Online CE Courses
At BEST we provide you with a lot of CE credit. Courses are
cost-effective, updated annually and nationally approved for
state insurance and professional designation credits (CFP / CIMA
/ CPWA / RMA). Our CE courses are specifically designed for
quick completion and include:
- Self-paced courses
- Unlimited retakes of review questions and final
examinations
- Instant grading
- Course material accessible for up to six (6) months
from date of purchase
- Excellent customer support team
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BEST Virtual Super CE Events
We provide advisors with:
- Study material, a 1.5 hour live webinar (review of study material) and a
50-question electronic exam (amount of questions vary by state)
- Maximum amount of State Insurance CE credit (varies by state)
- 10 CE credit hours of CFP
- 5 CE credit hours of CIMA/CPWA/RMA
- Cost is $54.95 per event plus state insurance filing fees when applicable
If you are unable to attend the live webinar, you may view a recording of the webinar or
credit may be transferred to the next available live webinar. (NOTE: A $20.00 cancellation
fee will apply for all refunds requested.)
- Additional $10.00 fee per certificate for CFP/CIMA/CPWA/RMA and other professional
designations up to $20.00 total.
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CFP/CIMA/CPWA/RMA Ethics CE 2-Hour Live Webinar
“Ethics CE: CFP Board’s Revised Code and Standards:
Ethics for CFP Professionals” (CFP Course#: 277681 | CIMA/CPWA/RMA
Course#: 21BEST011)
Earn two (2) credit hours of CFP/CIMA/CPWA/RMA Ethics CE with NO EXAM!
(“Investments & Wealth
Institute® has accepted this CFP Ethics webinar for
2 hours of CE credit towards the CIMA®, CPWA® and
RMA® certifications.”)
WEBINAR DOES
NOT INCLUDE STATE INSURANCE CREDIT!
*PAYMENT OPTIONS:
- CFP ONLY license: $49.00
- CIMA / CPWA / RMA ONLY license: $49.00
- CFP AND CIMA / CPWA / RMA licenses: $49.00 plus an
additional fee of $25.00
NOTE: Attendees MUST participate in all exercises and polling questions during the webinar.
Credit received for attendee time logged and participation, NO EXAM at end of webinar.
(A $10.00 cancellation fee will apply for all refunds requested.)
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Self-Study CE Course List
As a top-notch continuing education provider we:
- Deliver CE to financial and insurance
advisors
- Offer up‑to‑date and industry pertinent CE
courses that maximize credits
- Provide ClearCert certified long-term care
and annuity training CE courses
- Supply CE courses that are approved in all
50 states and the
District of Columbia
Order
CE courses toll free at: 1-800-345-5669 OR send an
email to
self_study@brokered.net.
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DISCLAIMER
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