Do you own funds with low ratings?

You can avoid mutual funds with the lowest ratings

Morningstar's 10 lowest-rated large fund firms include all the well-known brands and some have the highest fees. http://bestmutualfund.org/morningstars-10-lowest-rated-large-fund-firms/

Most of the best have low fees:  http://abcnews.go.com/Business/morningstar-ranks-best-worst-mutual-funds-401k/story?id=14789497#.UKkT2YfBEo4

Low fee funds beat high fee funds in every period, according to Morningstar.

Which mutual fund family is best for you?

We help you pick the funds to use for the long haul: http://www.amazon.com/Do-Yourself-Personal-Finance-commissions/dp/1480156493/

Taxing the rich can raise $824 billion

Letting tax rates rise to Clinton era levels for those families making over $250,000 a year would 'only' raise $824 billion over ten years. Many GOP believe the Administration's insistence on these tax increases has nothing to do with fiscal issues. "...the true reason for raising taxes is to increase "class warfare" and to punish "evil colonialist and oppressive capitalism." Where does GOP find this stuff? Clinton era tax levels produced high employment and surplus. $824 billion is a lot of money!!

SC state workers no longer offered LTCi

The state's long-term care insurance is a voluntary program, meaning employees paid 100 percent of the premiums and taxpayers paid zero. But the insurance is expensive, and state workers got a group discount. That discount will stop after June, 2013. About 11,000 individuals had signed up for the coverage out of about 450,000 people under the state health plan. South Carolina has offered the insurance since 1988 -- but they are not required to offer it. Prudential, the insurer, left the market.

Have you planned to pay for your parents’ medical care bills?

29 states have laws that give the government access to your financial means, even in retirement. Check your state: http://www.bankrate.com/finance/insurance/map-states-parental-support-laws.aspx. Some states may have laws but they are not enforced since Medicaid picks up the tab. Some states will not go after your retirement money. An elder lawyer can help you plan. Our Long-term Care Insurance Guide has alternatives:http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

ME TX WI Govs say not help citizens with health care

Maine will let the federal government take the reins on setting up a mandated online health insurance market, according to Gov. LePage. "I'm not lifting a finger," he said in an interview.

Gov. Rick Perry, in a follow-up letter to U.S. Health and Human Services Secretary Kathleen Sebelius, reiterated Texas' decision not to implement a state insurance exchange as part of Obamacare.

Scott Walker says Wisconsin will not set up a health insurance exchange under President Barack Obama's Affordable Care Act. The Supreme court has ruled ObamaCare is valid.

ObamaCare defines essential health benefits for all

Feds define the “essential health benefits” that must be offered to most Americans and by allowing employers to offer much bigger financial rewards to employees who quit smoking or adopt other healthy behaviors. Under the rules, insurers cannot deny coverage or charge higher premiums to people because they are sick or have been ill. They also cannot charge women more than men, as many now do. Most states are defining essential benefits to be those provided by the largest health plan in the state’s small-group insurance market. However, to comply with the law, federal officials said, insurers must provide certain additional benefits, including dental care and vision services for children, treatment of mental health and drug abuse problems, and “habilitative services” for people with conditions like autism or cerebral palsy.

Drivers surfing the Web while driving

State Farm reports there are more drivers using their Smart phones while driving causing near misses and hits on other drivers. If you are in an accident, check whether the other driver has a Smart phone in his hand. This could indicate he was surfing while driving.

Safe drivers save with proof

Seeking discounts on auto insurance, more drivers are agreeing to install monitors in their cars to record their driving habits. Driving data is collected with a device that policyholders must be persuaded to install; it connects to the car’s computer system via a diagnostic port found in all cars since 1996. Such “user-based insurance,” the name for individualized pricing based on data collected from a vehicle, is spreading. Drivewise from Allstate is in 10 states; Drive Safe and Save, from State Farm, is in 16, with 11 more to be added next month; and Snapshot, from Progressive, is in 43. Use all 15 discounts: http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

SCAMS           “Only the little people pay taxes.” Leona Helmsley

Insurers caught holding life insurance benefits for themselves

Regulators said John Hancock selectively used the Social Security Administration's Death Master File database to end benefits payments, but didn't use it to find deceased policyholders or their beneficiaries. The company also agreed to pay $13.3 million to the six states. AIG, Prudential, MetLife, Nationwide reached have reached similar settlements.

Bank lied to investors on mortgages

Regulators accused Credit Suisse, the Swiss bank, of misleading investors over the quality of residential mortgage-backed securities. The deception resulted in losses to investors of some $11.2 billion, according to the suit.

Education — not government regulation — is the best approach to take to protect seniors, said Mr. Abagnale, who has spent the last 36 years teaching agents at the Federal Bureau of Investigation how to detect and combat fraud. He advocated public service announcements to point out common scams and explain how to avoid becoming a victim. The famous 'Catch Me If You Can' con artist warns about scams targeting seniors.

Two men accused of stealing the identities of terminally ill people to reap $30 million from insurance companies and brokerage houses pleaded guilty Monday, several days into their trial, and face prison sentences of up to 10 years each. Estate planning ‘lawyer’ and ‘philanthropist’ Joseph Caramadre, 50, and his former employee Raymour Radhakrishnan, 28, each entered guilty pleas in U.S. District Court in Providence to single counts of wire fraud and conspiracy, ending the trial.

Bankers Life still hadn't revised its procedures to ensure that claims were paid and that claim investigations were completed in a timely manner. Bankers Life also failed to update its underwriting practices to ensure “complete and accurate” applications, and the insurer did not revise its maximum-benefit claim denial letters to include details of a restoration of benefits provision in the contract, according to regulators.

Who owns your account now?

Physicians Insurance Company of Ohio and Citation Insurance Company, to an affiliate of White Mountains Insurance Group

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Wealth: What Every Student Needs to Know $3.99 iTunes

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Start today! Every year you delay costs you $100,000 later. http://itunes.apple.com/us/app/wealth-what-every-high-school/id540588535?mt=8

 

NC to reduce uninsured by 64% with ObamaCare

With the implementation of health reform, the first year of the Medicaid expansion alone is expected to reduce the number of uninsured persons in North Carolina by 64 percent, said a new report from the Budget and Tax Center a project of the North Carolina.

 

America is getting older

Baby boomers will turn age 65 at a rate of nearly 8,000 per day for the next 17 years. Most couples will need income for 30 years. IRAs must be used starting at age 70.5. If they are not needed, IRAs may be converted to Roth IRA which allows all gains to be left to heirs tax FREE like life insurance. 401k income is taxed as income. Social Security benefits (up to 85%) may be taxed if other income is high. A little planning goes a long way with our Guide:   http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Will you have enough? Where will you invest? How much will you spend?

 

Is your advisor talking and showing variable annuity benefits again?
LPL and other firms are helping their advisors to push variable annuities since sales are down and commissions are up. LPL and others are using videos to help capture more clients’ dollars. The benefits are income and growth in the future during low interest times. Your advisor should also mention the costs and risks of these products. The SEC has warned that misleading claims can lock you into low benefits/rewards in the future:

 

RememberVariable annuities are designed to be long-term investments, to meet retirement and other long-range goals. Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.

http://www.sec.gov/investor/pubs/sec-guide-to-variable-annuities.pdf

 

 

Book review Red Ink: Inside the High-Stakes Politics of the Federal Budget

How did we get to this point of owing $49,000 for each family member, up from $1,640 in 1966? Pulitzer-Prize-winning reporter David Wessel explains each party’s contribution to the mess. Who pays tax and who does not, how much goes to waste, how much is decided by 12,000 Washington lobbyists at $10,000 to $20,000 A MONTH retainer? How did corporations reduce their share from over 30% in the 1950’s to 6.6%? In 1980, 22% of all business profits were booked by firms that did not have to pay corporate taxes. In 2008, 73% of all business profits are booked by firms that don’t pay corporate taxes (yellow line in graph keeps going down).

Estate taxes account for less than 1% of revenue. Wage earners are paying 58 cents to state/local government for every $1 paid to the Feds. Why Reagan had to raise taxes 14 times and still couldn’t balance the budget. 

Is this socialism for the rich or what?

http://economix.blogs.nytimes.com/2009/10/20/federal-revenues-at-lowest-share-of-gdp-since-1950/

 

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+Twelve low-cost mutual funds that return 11% long-term.

Where is your sloop going? A retirement portfolio that flies. $12.95

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Insurers to raise price of UL life policies

Survey shows many insurers must raise the premium and lower their guarantees because of low interest rates and poor profit records. UL has a life insurance component which continues to cost less and savings component that can’t meet promises. Perhaps you should take your buildup and invest it while you switch to a lower cost term policy. You will have more later and still be covered. Life insurance is never a solid investment.

http://www.amazon.com/Drop-Your-Insurance-Dan-Keppel/dp/1448623391

 

 

GOP wants Romney to abolish interest deduction to lower his classes’ taxes

Republican platform drafters refused to put their party on record for preserving the mortgage- interest deduction, giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt. Middle-class taxes would go up to pay for GOP tax breaks.

Who would vote for that outside the 1%ers?  http://www.sfgate.com/business/bloomberg/article/Republican-Platform-Won-t-Spare-Mortgage-Tax-3804350.php

 

 

Are commission-based accounts right for you?

Advisors are trying to switch our accounts into fee-based revenue accounts. Some are getting rich on 1-2% per annum but 72% of industry assets remain in commission-based accounts. Which is best for you? Like life, it depends on what you want to do. If you are a buy and hold investor, paying a low annual fee and no commission may be your best bet. If you like to pursue the hot products, a 1% fee may be great for hopping in and out of new trends. ETFs are popular but there are commissions to pay while an index fund of the same market may be cheaper. Learn from the insiders: Lies My Financial Advisor Told Me http://www.amazon.com/gp/product/1478281545/

 

Are your mutual funds really holding index funds (ETFs)?

Since you are paying 1-2% for a manager to pick market beating returns, would you be surprised (and angry) to find that they have put a lot of your money into index funds? It is true. Smart Money revealed that some small cap funds are actually invested mostly in the Russell 2,000 stock index ETF. Your manager may claim that they can easily sell the ETF when you and others want to cash in, but doesn’t that defeat the purpose of paying a “professional” to make the “smart” bets? Why pay extra for ETFs when you can buy the real McCoy and save the manager’s 1-2% fee plus ETF fee. The difference can be 40% of your total nest egg long term. In the last 10 years, Vanguard Small Cap Index has moved up 9.79% annually. You need your money more than your manager! Try it “neat!”  http://www.amazon.com/Wealth-Without-Wall-Street-Avoid Commissions/dp/1442168137

 

Women dissed by advisors?

According to a Boston Consulting Group survey, 73 percent of women say that they are dissatisfied with the financial services industry. Women claim they are overlooked, excluded, receive contradictory or poor advice and get worse deal terms than men.

But women are better investors than men and most know how to shop for a bargain. Stop wasting money and get better financial performance too: http://www.amazon.com/Leahs-Money-Book-control-money/dp/1448654408

 

Woman dissed by GOP

Paul Ryan, a married Roman Catholic, would overhaul women’ s health rights, Medicare, Social Security, and the health care law. He has actively fought abortion rights, government funding of family planning and insurance coverage for contraceptives. GOP platform says no abortion for rape, incest, even the death of the woman. GOP claims the sanctity of life, but not the pregnant woman’s life? Back to the coat hanger in the alley?

 http://www.nytimes.com/2012/08/22/opinion/what-the-gop-platform-represents.html

 

College student’s stuff may be covered by homeowners’

Check your policy or agent to confirm that your policy covers most of their stuff in the dorm or off-campus housing.

 

10 investments that worry regulators

Test your knowledge of the top investing scams being investigated by local regulators.

http://www.nasaa.org/3752/top-investor-threats/

 

 

SCAMS           “Only the little people pay taxes.” Leona Helmsley

 

Life Partners accused of fraud—“Gambling on death”

Accusing Waco-based Life Partners of fraud, state officials asked a state district judge in Austin on Thursday for authority to seize the life insurance settlement broker because it may run out of cash in two months. Texas claims that Life Partners sold unregistered securities and manufactured the value of the life insurance, or viatical, settlements by artificially shortening the life expectancies of those covered by the policies.

The company bought up insurance policies from elderly people, then resold fractions of the policies to investors, often promising big returns -- saying they are safer than buying gold or stocks. But some investors discovered that they had to pay premiums to keep the policies from collapsing, as people lived far longer than Life Partners predicted. Dah.

 

Congress benefits from letting lobbyists write our laws?

You have to be a millionaire to understand how the laws are written and they are.

http://thehill.com/business-a-lobbying/243625-the-hills-2012-50-wealthiest-in-congress

 

 

Who owns your account now?

Coventry Health to Aetna

 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Financial power in the 21st century

Financial power for the 21^st century

Will you have enough in retirement? Now is the time to find out.

You could have about $250,000 extra to supplement your Social Security benefits in about 15 years. Will You Have Enough? takes you through the process of determining how much you will have. Law Steeple has been an industry executive for over 20 years.

http://www.amazon.com/Will-You-Have-Enough-retirement/dp/1477594086/ $12.95

Seniors are the target of scammers—“That is where the money is”

Nearly 60% of the respondents — all professionals who work with the elderly — to an online survey conducted by Investor Protection Trust said that they deal with elderly victims of investment fraud “quite often” or “somewhat often.” Nearly every one of the 763 participants in the survey said that the problem of financial exploitation of the elderly is “very serious” or “somewhat serious” and 84% said it was getting “much worse” or “somewhat worse.” The survey by the nonprofit included 76 state securities regulators and 77 financial planners, in addition to medical professionals. Members have solved that problem: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

CA insurer manipulated system to get rid of sick? This is RomneyCare?

Blue Shield has used enormous rate hikes, and the threat of rate increases, to force patients into lower-benefit and higher-deductible health coverage in violation of state law. BS gamed the system by alternately closing older policies and opening new ones in order to push older, sicker consumers who are more expensive to insure into lower benefit, higher deductible coverage that requires consumers to pay more out of pocket.

The lawsuit seeks to stop Blue Shield from shoving its policyholders into what is known as a "Death Spiral"–the industry term for what happens when a health insurer "closes" certain insurance policies to new customers, and later raises rates to those remaining in the closed policy until those enrollees can no longer afford coverage. "Blue Shield closed my family's policy and then threatened us with a 23% premium increase. We had no choice but to switch to the only bare bones policy Blue Shield offered us. When Blue Shield canceled the original rate increase, the company refused to let us transfer back into our old, higher benefit policy. Then, Blue Shield raised the rate of our bare bones policy by 14.8%!" said Robert Martin of Gilroy, litigant.

Middle class can’t sustain American economy—Rich take more income!

The average American family saw their net worth drop 40% in that three-year time period from $126,400 to $77,300. Three-quarters of the loss, not surprisingly, is due in large part to falling home prices, which have seen no reprieve since the housing bubble began to burst in 2007. The average homeowner saw their net worth fall more than $70,000 from roughly $250,000 in 2007 to $175,000 in 2010. But what is surprising is the fact that overall net worth has fallen to levels not seen since the early 1990's, long before the housing bubble even began. In three years, 18 years of savings have been wiped away for the majority of the country and at the same time wages have fallen. The average income fell from about $50,000 in 2010 to $46,000 in 2007.

But this negative trend does not stop there. As average families become poorer, rich Americans are growing richer. The Fed survey showed the wealthiest 10% of families actually saw their net worth rise from 2007 to 2010. Over that time period, their net worth increased from $1.17 million to $1.19 million. http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf

Where have all the job-creators gone with their Bush tax cuts?

The continued decline of the American middle class and the ascent of the rich has resulted in income inequality at levels not seen since the Great Depression. While the bulk of consumer spending has historically come from the middle class, if the majority of Americans continue to suffer from falling wages and income, eventually something has got to give. There is no possible way for the super-rich to buy enough stuff to float the entire U.S. economy.

It's growing increasingly clear that we live in drastic times and drastic measures must be taken to save the country's middle class. One drastic measure is that more Americans are putting off retirement because they simply can't afford it.

But with Americans living longer and putting increased strain on programs like Social Security and Medicare, the retirement age is going to have to be raised for one reason or another.

Members create a tax-FREE Wealth Reserve: http://www.amazon.com/Create-Your-Tax-FREE-Financial-System/dp/1466367466/

Your Affinity group may obtain discount insurance

Members of Ducks Unlimited, the world leader in wetland and waterfowl conservation, now have access to special group discounts on auto, home, and other property and liability insurance from MetLife Auto & Home and other national insurance companies through a new program designed just for members of Ducks Unlimited. Your alma matter or church or civic organization my offer you a discount too. Check our list: http://www.amazon.com/gp/product/143480593X/

Insurers give back premiums

Health insurers are expected to rebate $1.3 billion in premium charges to employers and consumers by August because the companies didn't spend enough on customer coverage in 2011. "This study shows that asking insurance companies to put more of their premium dollar toward patient care rather than administration and profits is not only popular but also effective. There are tangible benefits for consumers and employers," said Drew Altman, Kaiser Foundation president and CEO.

Insurers and employers say they will continue with reforms despite Supremes’ political decisions

Some insurers will continue to offer important health care insurance protections that were included in the 2010 health care reform law, no matter how the U.S. Supreme Court rules in cases currently pending before the Court. For instance, there are 7 millions of young on their parents’ insurance because they have no affordable coverage. The GOP may force them off and raise the uninsured to over 50 millions. “Fewer Americans would need to remain on their parents’health insurance if they had stable, full-time work,” GOP DeMint wrote. Yes, the point is they don’t.  http://www.businessweek.com/news/2012-06-08/health-law-adds-6-dot-6-million-young-adults-to-parents-u-dot-s-dot

Socialism for the rich—Hungry will have to rely on charity

A New York senator will try to cut $4.5 billion from the nation's publicly subsidized crop insurance program to preserve spending on the nation's food stamp program.

Sen. Kirsten Gillibrand, D-N.Y., will offer an amendment to the new farm bill that the Senate could vote on as early as Tuesday. The farm bill, which is of particular importance in Minnesota and other Farm Belt states, contains an expansion of the crop insurance program designed to make up for the elimination of direct payments to farmers.

Gillibrand said on Monday that the Congressional Budget Office has estimated that food stamp cuts currently in the farm bill would take away an average of $90 per month in payments to nearly half a million households.

Will lobbyists or the poor win?

Two of our “friends” helping Iran evade sanctions by giving insurance and we let them!

Indian state-owned refiners will halt planned oil imports of 173,000 barrels per day from Iran when European sanctions take effect in July, unless the government permits them to use insurance and freight arranged by Tehran, industry sources said. Japan's cabinet ministers approved and submitted a special bill to parliament on Monday to enable the government to provide insurance cover for Iranian crude imports once a European Union ban on insurance and reinsurance takes effect on July 1.

Plus ING Bank pays fine to bank for IRAN

ING Bank NV agreed to pay $619 million to settle U.S. government allegations that it violated U.S. sanctions against Cuba, Iran and other countries. It was the biggest ever fine against a bank for sanctions violations, officials said.

SCAMS           “Only the little people pay taxes.” Leona Helmsley

Will States need a bailout next? 

Banks cash-in on their own failed products. New York State, for one, has paid $243 million in recent years to extricate itself from swaps-related debt. That money went straight from taxpayers’ pockets to Wall Street.

Corporations rarely do deals like these, because they generally avoid making long-term bets on interest rates. But bankers sold the idea to public borrowers. The total bill to terminate all of these swaps-related deals would run into many billions.

“Derivatives are time bombs,” Warren Buffett

http://www.nytimes.com/2012/06/10/business/banks-could-return-a-favor-to-governments-fair-game.html

Insurers low-ball your claim by changing settlement software program

A newly released report by a former Allstate Corp. claims executive working at a consumer rights group alleges that most of the nation's biggest insurance companies use computer systems that can be manipulated to underpay injury claims.

The report was issued Monday by the Consumer Federation of America, whose claims project director, Mark Romano, had worked for the Northbrook-based insurer, as well as CNA and Hanover. Romano last year joined the Consumer Federation of America as claims project director.

"This report is a wake-up call for consumers and regulators who are not aware of the many ways that computer claims' software can be manipulated to produce unjustifiably low injury payments to consumers and tens of millions of dollars in illegitimate 'savings' for insurers," Romano said in a statement.

We have to hire a claims adjuster to speak for us. http://www.consumerfed.org/news/536

AIG continues to play games with the law despite US ownership

AIG will pay California $15.6 million in penalties to settle allegations that its insurance companies underreported workers' compensation premiums over several decades. America still owns AIG but treasury lets them carry on these scams

Our ‘representatives’ bought $180 million in drones that just sit near border

Sounds like another military industrial complex cost overrun at the Pentagon. “We don’t need anymore.” “Sorry, we already gave the $ billion contract to AeroVironment for more drones instead of helos.” http://cdn.theatlantic.com/static/mt/assets/science/OIG_12-85_May12.pdf

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com