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Week 2 : Annuities and Mutual Funds

In Session Two we focus on two of the most heavily sold products by financial broker/dealers, insurance companies, banks and credit unions; Annuities and Mutual Funds.  There are many other financial products sold (hedge funds, structured notes, options, individual stocks and bonds, etc.) by Wall Street.  We believe strongly that for 95% of the U.S. public you should NOT purchase a commissioned financial product (plenty of no commissioned products in the marketplace) because of the inherent conflicts in the sale. Is the recommendation being made because the product is best for the consumer or is it best for the sales person in terms of a commission?  Your major broker/dealers have annual net earnings that average over $8 Billion per year.

For annuities please understand the SURRENDER CHARGES.   For example, if the surrender charge is 7% in the first or second year more than likely the sales person’s commission is 7% of the investment.  For mutual funds, you must understand how you are being charged (A, B & C shares) and the expense ratio because expenses are a major detriment to the annual performance of the fund you’ve chosen.

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OUTLINE:

Outline – IYM Week 2 – PDF
Outline – IYM Week 2 Presentation by Thomas Mauriello
Ask First – Thomas Mauriello

ANNUITIES:

Avoid the Annuity Hard Sales Pitch
The Annuity 99 percents of Clients Should Avoid
What You Need to Know About Annuities With GMIB Riders
SEC advisory panel recommends new approach to accredited investor label
5 Annuity Answers Every Investor Needs to Know
Milevsky – Mispricing Annuities, Then and Now
Annuity Puzzle Solved – Don’t Buy Them
SEC officials warn insurers on annuity disclosures VA changes
Annuities Explained – The Choices And Red Flags
8 notable trends in the VA business
Variable Annuity sales leaders – Participating issuers, ranked by new sales
Pru’s VA price hike too much for Raymond James
Variable Annuity Outlook 2013 – Tough Road Ahead
B-Ds struggle with lost revenue amid VA cuts
FINRA and SEC Warn About Annuity Risks

Guaranteed-minimum-withdrawal benefit in the annuity – very popular
Insights into the annuity puzzle
The Hartford Rolls Out Principal, Income Guarantee Products
VA changes at major insurers are afoot
Variable Annuity Insurance carriers hunkering down
All about annuities
Annuity fees a turnoff for clients and advisers
Eight VA trends worth noting
Flight to Safety Drives Annuity Sales
Variable Annuity customers don’t read prospectuses
Variable annuities selling at fever pitch
The CRIMINALS Who Sell Annuities
Puny Treasury yields could trigger more cuts to annuities
New website promises investors a peek at prices
Banks slapped with $1.65M in fines for improper VA and mutual fund sales
At Annuity University, agents learn to pitch
1035 insurance exchange

INDEXED ANNUITIES:

Metlife To Pay Record Finra Fine For Misleading Annuity Customers
Variable Annuities a Top Source of Customer Complaints
Variable annuity sales raising concern – Finra official
Axa to pay $20M fine for handling of variable annuities
Bogle – Indexing Has ‘Gone Too Far’
Indexed annuities gain popularity while rates remain low
4 Logical Questions on the Value to Clients of Indexed Annuities
Will Indexing Kill the Market

Indexed Annuities New Pals
Popular indexed annuities called ‘terrible ideas’ for seniors
Indexed Annuities
$30 Billion In Sales of Indexed Annuities – 2010
(Indexed Annuities) Downside Protection Has Its Downsides
Wirehouses warming to indexed annuities

MUTUAL FUNDS:

Better Odds Playing Powerball Than Picking Best Mutual Fund
The Sage of Omaha has very few true disciples
Actively managed mutual funds fall short again – and investors notice

 

Vanguard maintains blistering pace of asset growth
Old load image a load for American Funds
American Funds looks to Guardian to help boost performance

How to Buy a Mutual Fund
Closed-end mutual funds keeping their options open
Bill Miller resigns as Legg Mason Capital Management Value Trust Manager
The 100 largest mutual fund families
Fees Are Bad for Investment Performance Morningstar


ETF-EXCHANGE TRADED FUNDS:

CalPERS switches to all-passive DC plans
Passive investing – If it’s good enough for CalPERS …
State Pensions Wasted $6 Billion on Wall Street Fees – Study

Reed plans to continue examination of ETFs
Vanguard fires another shot in ETF fee war
Vanguard strikes back against Bogle


OTHER FINANCIAL PRODUCTS:

Unique challenges in handling existing VAs
Wells to pay $2M to settle claims broker sold unsuitable investments to seniors
Representives – Advisors Value based on Production Numbers
Goldman Sachs Ripped by Critics for History of Putting Profits Over Clients
MF’s missing Dollars makes you wonder about Goldman JP Morgan Weil
Bank of America raises the compensation bar for Merrill brokers
Bogle – ETFs great for trading – bad for investors
Clients – So many investment products, so little understanding
FINRA Hits Chase Investment Services With $3.6 Fine
Private-placement due diligence ‘sloppy’
The Hartford Rolls Out Principal, Income Guarantee Products

Limited Partnership Sales $1.2M in damages – Ameriprise
‘Best short EVER!’ ends up costing Citi $285M
About-face on reverse mortgages
Ameriprise workers sue over company’s own 401(k) funds
Boogie down and out after selling private placements
‘Go-anywhere’ funds deliver as promised
Goldman Punishment Two Weeks Earnings
Goldman settlement – Four bizarre myths
Smith Barney agrees to pay $50M in suit
Wells Fargo and BofA are leaning on their brokerage businesses
Top 5 Investor PRODUCT Traps for 2011
TIC investments come back to bite


FRAUD AND SCAMS:

‘The Big Short’ Writer Finds Dark Humor in Financial Meltdown
Morgan Stanley To Pay $2.6 Billion Mortgage Settlement
SEC Busts 4 Insurance Agents in Scam Against Seniors – 9-2014
Ex-NAPFA Chairman Sent Straight to Prison in Fraud Judgment
SEC charges pair of brokers, investment advisory firm, others with $80M variable annuity scam
Insurance Broker Sentenced in Tom Hanks Scam
12 Worst Financial Advisors in America – 2013
SEC, FINRA Enforcement Ex-Marine Charged With Bilking Fellow Servicemembers
The IRS’ dirty dozen tax scams (2013)
SEC Accuses Planner of Stealing $1 Million From Clients
LPL beefing up its compliance in wake of Massachusetts suit
Montana regulators target LPL REIT sales
Knott’s Berry Farm heiress files $8.5M claim against LPL
Bernie Madoff Insists JPMorgan Knew of Ponzi Scheme
Officers at Big Three private placement shop indicted
A Broker Who Broke Bad
Were you a victim in the largest Ponzi scheme in OC History

SEC’s 16 Biggest Penalties Since Financial Crisis
Peregrine founder cops to stealing $100M from clients
Foundation for New Era Philanthropy
The Death of a Flamboyant Charity Wrongdoer Sends a Reminder to Regulators
SEC Enforcement Roundup – Broker Charged With Stealing to Pay for Mortgage, Groceries
Protect Clients, and Yourself, from the Perfect Scam
Wells Fargo reaches $6.5M settlement over sales of investments to municipalities
Hall of Fame coach faked out players in $80 million Ponzi scheme – SEC
Veterans Pension Program Is Being Abused, Report Says
FINRA Panel Orders Wedbush, Former Broker to Pay Investor $2.9M
B-D, execs who allegedly preyed on seniors hit with $2.6M in fines, restitution
SEC Private Placement Rule Threatens to Put Investors at Great Risk
12 Worst Financial Advisors in America
Survey reveals alarming rise in financial abuse of the elderly
Swindling the Elderly
Ponzi schemes – just a few for 2011


WORKSHOP VIDEOS:

Part 1:

Part 2:

Part 3:

Part 4:

Part 5:

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