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BEST

August

2019

 

Advisor News Insight

 
It is amazing what you can accomplish...
 

AFRs |  FACTS |  RECOMMENDED |  TOOLS |  REQUIREMENTS | 

CFP ETHICS WEBINAR |  PODCAST |  FEATURED |  SUPER CE

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Industry News

 

Health Care Planning

 

Health Care Will Cost a 65-Year-Old-Couple $396K Over
Their Lifetimes

(This is assuming their health is average, according to Milliman.)

 

A healthy 65-year-old couple retiring this year will spend $369,000 in today’s dollars on health care over their lifetime, according to Milliman. In future dollars, that increases to $551,000. By age 85, their health care expenses are 250% higher than at age 65.

 

This article was written by Lee Barney Managing Editor of planadviser.com.

 
 
 

Why Health Needs to Be Part of Retirement Planning

 

Healthy clients are likely to have higher medical costs in retirement than their less-healthy counterparts. Why? Because they are likely to live longer than average, and health-care costs tend to increase at the end of life. A newly released white paper from HealthView Services, Why Health Needs to Be Part of Retirement Planning, provides new data detailing the projected cost of health care, the impact of health conditions and strategies to plan for, manage and even reduce health-care costs in retirement.

 

White paper prepared and distrubuted by HealthView Services.

 

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IRA Planning

 

IRS Responds

 

In PLR 201924013, the IRS ruled favorably on the tax consequences of the distribution of an IRA from a revocable trust (which became irrevocable upon the IRA owner’s death).

 

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Life Insurance Planning

 

Whole Life Can Combat Market Volatility

 

Not having enough assets to generate income in retirement or losing assets because of market downturns are common concerns of those preparing for retirement, but whole life insurance as part of a solid retirement strategy can do more to alleviate those issues than many people might think, a recent report shows.

 

This article was distributed by InsuranceNewsNet.com.

 

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Retirement Planning

 

Doing these five things could decrease your risk of Alzheimer’s by 60 percent, new study says

 

Here’s a to-do list for preventing dementia, new research suggests: Ditch red meat, take a brisk walk to the grocery store, do the Sunday crossword and stick to one glass of wine at dinner.

 

A study presented Sunday at the Alzheimer’s Association International Conference in Los Angeles found that combining five lifestyle habits — including eating healthier, exercising regularly and refraining from smoking — can reduce the risk of Alzheimer’s by 60 percent. A separate study showed that lifestyle choices can lower risk even for those who are genetically prelifestyle disposed to the disease.

 

This article was written by Hannah Natanson Reporter at The Washington Post.

 
 
 

EBRI 2019 Retirement Confidence Survey

 

The EBRI 2019 Retirement Confidence Survey (RCS) is out. The RCS is the longest-running survey of its kind, and is conducted by the Employee Benefit Research Institute (EBRI) and independent research firm Greenwald & Associates. The study deals with the psychology of the American worker and of retirees when it comes to money needed for retirement. As such, it can be used as a great tool to help advisors motivate clients to act NOW to implement proper planning vs. waiting until it's too late.

 

This report was prepared and distributed by EBRI.

 
 
 

Leveraging Home Equity Against The Longevity Risk

 

With the current retirement income crisis facing baby boomers, advisors need every viable resource to help their clients and sustain their practice. Reverse mortgages have become one such resource. Historically, the financial services community has either dismissed the reverse mortgage or relegated it to use as a last resort. However, much has changed in the last few years, including FINRA’s position on the program.

 

This article was written by Don Graves, RICP, CLTC, CSA president and founder of the Housing Wealth Institute and architect of the Advisor’s Certificate Course in Housing Wealth.

 
 
 

Small 401(k) plans lag on important metrics

 

Small retirement plans — those with less than $20 million — had a plan-weighted participation rate of 72% last year, according to Vanguard Group’s annual How America Saves Small Business Edition report. Larger plans — those with more than $20 million — had a much higher participation rate, at 82%.

 

This report was prepared and distributed by The Vanguard Group, Inc..

 

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Social Security Planning

 

Only 4% of Retirees Claim Social Security at Optimal Time, Leaving $3.4 Trillion On Table

 

Retirees will collectively lose an estimated $3.4 trillion in potential retirement income, or an average of $111,000 per household, because they claimed Social Security at a financially sub-optimal time, according to new research out today by fintech United Income. That works out to a potential 9% increase in total expected future income, or an average annual increase of $3,400 in income, for households that make the better claiming decision.

 

This article was written by Ashlea Ebeling Associate Editor on the Money team at Forbes.

 

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Practice Management

 

House Votes to Block SEC’s Reg. BI Package

 

The U.S. House of Representatives approved legislation June 26 that, if enacted, would block the SEC’s newly adopted Regulation Best Interest from taking effect. The Amendment (see link below) states that none of the funds made available by H.R. 3351 “may be used by the SEC to implement, administer, enforce, or publicize the final rules and interpretations” of the SEC.

 

This article was written by Ted Godbout Journalist for the National Association of Plan Advisors (NAPA).

 
 
 

How to Open a Great Client Relationship

 

When starting a client relationship, how can you and the people across from you agree on which of these questions (translated to their life circumstances) you can help them with, and whether you are the right person for them? Start by asking, listening and watching. Beyond just words, look for body language and pay attention to which topics most concern each person.

 

This article was written by Richard E. Vodra writer at Advisor Perspectives.

 
 
 

LIMRA Survey: Advisors Better Be On Social Media

 

LIMRA research shows 27% of Americans prefer to work with an agent or advisor when buying life insurance.

 

New findings from the 2019 Insurance Barometer Study show about 1 in 5 Americans (17%) say they are looking for a financial advisor.

 

Millennials and Generation X consumers are most likely to be among those who are looking for an advisor and LIMRA research shows they are more likely to be using social media to research financial professionals.

 

Report prepared by LIMRA.

 

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Assumed Federal Rates (AFRs)

 

§7520 Rate for August is: 2.2%

 

AFRs Breakdown:

 
AFRs
 

View a complete history of AFR §7520 rates, as well as information on NumberCruncher Software for Estate, Financial and Charitable Planning at:

 
 

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Financial Facts of the Month

 

Bonds

 

The US bond market (including treasury, municipal, corporate, mortgage and asset-backed debt) was worth $43.1 trillion as of 3/31/19. Treasury debt ($15.9 trillion) makes up the largest piece of the US bond market (Source: Securities Industry and Financial Markets Association (SIFMA)).

 
 
 

Budget Review

 

During the first 8 months of fiscal year 2019, i.e., through 5/31/19, tax receipts are up +2.3% from the previous year to $2.27 trillion while outlays are up +9.3% to $3.01 trillion (Source: U.S. Department of the Treasury).

 
 
 

College

 

During the 2018-19 school year, American colleges awarded 1.88 million bachelor’s degrees, down from a record 1.96 million degrees from the 2016-17 school year (Source: National Center for Education Statistics (NCES)).

 
 
 

Declining Rate

 

Of individual tax returns filed in calendar year 2010, 1.11% were audited or 1 out of every 91 returns. Since then, the audit rate has fallen for 7 consecutive years to 0.59% for individual tax returns filed in calendar year 2017, equal to 1 out of every 169 returns (Source: IRS Data Book).

 
 
 

Debt-Free

 

40% of US homeowners own their home free and clear of any mortgage debt or home equity loan. Of the 60% of homeowners with an outstanding debt balance, the median debt total is $126,000 (Source: American Housing Survey, conducted by the U.S. Census Bureau).

 

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Money

 

The top 10% of taxpayers received 47% of the $10.2 trillion of adjusted gross income (AGI) earned nationwide in tax year 2016. The bottom 90% of taxpayers received the other 53% of AGI (Source: Internal Revenue Service (IRS)).

 
 
 

Newborns

 

Our nation’s “general fertility rate,” defined as the number of births per 1,000 women between the ages of 15-44, was just 59.0 births in 2018, a record low for birth data that has been tracked nationally since 1909 or for the last 110 years (Source: National Center for Health Statistics (NCHS)).

 
 
 

Raise Taxes

 

Proposed House bill HR 860 (“Social Security 2100 Act”) would raise Social Security payroll taxes from 12.4% currently (the combined tax rate for employees and employers) to 14.8% by the year 2043. The combined rate would be raised 0.1 percentage point per year beginning in 2020 (Source: U.S. Congress).

 
 
 

Six-to-One Return

 

The average American worker who retires next year (in 2020) will have paid $36,000 in Medicare taxes during his/her working lifetime, far less than the $229,000 in Medicare benefits that he/she is projected to receive. The projected lifetime benefit total is net of Medicare premiums paid by the retiree (Source: Urban Institute).

 
 
 

State Steps In

 

California began “Cal Savers” on 7/01/19, a state-sponsored retirement program for workers within the state that do not have access to an employer-sponsored retirement plan. The program is mandatory for all employers who do not offer a retirement plan and have at least 5 employees and will be phased in over the next 3 years. Self-employed Californians can enroll beginning in September 2019. All participants are limited to contributions up to standard IRA maximums and are provided 5 investment options (Source: CalSavers Retirement Savings Program).

 
 
 

Subject to a Tariff?

 

35% of the auto parts used by domestic auto makers are manufactured outside the United States, then imported into America (Source: Deutsche Bank).

 

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Recommended Reading

 

PLATFORM: Get Noticed in a Noisy World

“Retirement Game-Changers: Strategies for a Healthy, Financially Secure, and Fulfilling Long Life”

By Steve Vernon, F.S.A. President of Rest-of-Life Communications

 

Plan for the 21st century retirement! We face game-changing challenges in our retirement

years, including longer lives than our parents and grandparents, the demise of traditional pension and retiree health plans, periodic stock market crashes that can derail our retirement, and sky-high medical and long-term care costs. Retirement Game-Changers helps you navigate these challenges as you transition from your work life into your retirement years.

 
 

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Advisor Tools

 

2019 Tax Guide

 

2019 Reference Guide to Social Security & Medicare

     
Our Tax Guide contains tax information such as:   Our Reference Guide contains information such as:
     
  • Individual income tax rates
     

  • Estates and trusts tax rates
     

  • Roth IRA contribution limits and much more

 
  • Social Security income limits
     

  • Medicare Parts A-D deductibles and premiums
     

  • Medicare surtaxes and much more

     
Download the Tax Guide below:   Download the Reference Guide below:
     
 
     

Please note that we do not provide printed copies. Feel free to make as many of your own copies as you need.

 
 

Financial / Insurance
Calculators & Websites

 

An extensive list of online calculators and informational websites.

 

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Requirement Updates

 

Several states have updated their insurance CE requirements. (View updates, CE requirements and more by clicking on the link below.)

 

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CFP Ethics Webinar

 

“Ethical Practices for Professionals”
(Course#: 248997)

 

During this live webinar, Ed will present the CFP Board’s Ethics CE program to help bring CFP® professionals up-to-date on the new Code and Standards.

 

PRESENTED BY: EDWARD J. BARRETT

CFP®, ChFC®, CLU®, CEBS®, RPA, CRPS®, CRPC®


DATE: MONDAY, AUGUST 19, 2019


TIME: 2:00PM - 4:00PM EASTERN TIME


CREDIT: 2-HOURS OF CFP ETHICS CE
(NOTE: This webinar does NOT include state insurance credit.)


FEE: $49.00 (USD)


PAYMENT OPTIONS:

  1. CFP ONLY license: $49.00
     
  2. CIMA / CPWA ONLY license: $49.00
     
  3. CFP AND CIMA / CPWA licenses: $49.00 plus an additional fee
    of $25.00

(“Investments & Wealth Institute® has accepted this CFP Ethics webinar for 2 hours of CE credit towards the CIMA®, CPWA®, CIMC®, and RMA® certifications.”)

 
 
 

The webinar consists of:

  • Five learning objectives
     
    1. Identify the structure and content of the revised Code and Standards, including significant changes and how the changes affect CFP® professionals.
       
    2. Act in accordance with CFP Board’s fiduciary duty.
       
    3. Apply the Practice Standards when providing Financial Planning.
       
    4. Recognize situations when specific information must be provided to a Client.
       
    5. Recognize and avoid, or fully disclose and manage, Material Conflicts of Interest.
       
  • Five vignettes (review questions)
     
  • Interactive polling questions at the end of each learning objective (except for Learning Objective Number Four)
     
  • Five interactive quiz questions after all Learning Objectives have been presented (credit received for attendee time logged and participation, no examination required)
     
  • Webinar Evaluation Form after the presentation has ended (will open after the presenter has ended the webinar. You will also receive a follow-up email 24 - 48 hours AFTER the webinar has concluded, with a link to access the online Evaluation Form.)
 

Click on the “Upcoming webinars” button below to view upcoming CFP Ethics Webinar dates/times.


Unable to attend this month’s webinar? Receive updates and registration information for future webinars by clicking on the “Subscribe” button below.

 
 

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BEST’s Advisor Insight Audio Podcast

 

HOSTED BY: EDWARD J. BARRETT

CFP®, ChFC®, CLU®, CEBS®, RPA, CRPS®, CRPC®


Below is a list of available Advisor Insight Audio Podcast episodes:


2019

  • Episode 1: 2019 IRS Tax Information

2018

  • Episode 1: Roth IRA Recharacterizations After the Tax Cuts and
    Jobs Act of 2017
     
  • Episode 2: Financial Exploitation of Seniors
     

NOTE: OUR PODCAST EPISODES ARE NOT APPROVED FOR CE CREDIT!

 

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Featured Self-Study CE Course

 

The Advisors Guide To 401(k) Plans

 

This course has been developed to enhance the advisor’s 401(k) knowledge and provide updates on the most recent 401(k) plan guidance. With recent tax law changes, Department of Labor requirements and court settlements, this course extends beyond the basics to cover special 401(k) testing rules and design options, as well as, ERISA and fiduciary responsibilities of the “parties of interest.”

 
 

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: 1-800-345-5669 or local: 727-853-0575
OR send an email to self_study@brokered.net.

 
 

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Super CE Program

 
Super CE Programs
 

Top 5 reasons to schedule a Super CE program:

 
  1. Classroom course: 1-hour (instructor-led)
     
  2. Self-Study/Correspondence course: Provides up to 21 hours of state insurance CE and 5, 10 or 20 hours of professional designation CE
     
  3. Increase meeting attendance and leverage your time
     
  4. Assist advisors in meeting their mandatory CE requirements
     
  5. Position your company’s strategy, product solutions and value-added programs
 
 
 

What Advisors Say...

 

“Thanks! This was the most enjoyable CE I’ve completed in my over 14+ years as an advisor. I’ll be back.”  ~ Raymond James Advisor


“I didn’t even need the CE, but took the class to expand my knowledge and understanding. Thank you BEST.”  ~ Merrill Lynch Advisor


“BEST has perfected the Super CE program!”  ~ Morgan Stanley Advisor


“Productive & effective use of time in meeting Continuing Education requirements.”  ~ Wells Fargo Advisor


“Excellent program, well worth the time!” ~ UBS Advisor

 

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