Your broker may get fired soon

Your broker may get fired soon
The larger brokerage firms have decided they only want big money. According to one guru, “The wirehouses see themselves better off with one $1 million producer than four $250,000 producers.” James Gorman, CEO of Morgan Stanley, for example, is determined to raise pretax profit margins in the firm's wealth management operations from the current 11% toward his target of 20%. This week, the firm made changes to its adviser compensation grid — raising the penalty box threshold from $250,000 to $300,000 for lower-producing advisers. Those who don't meet the new production targets will see their payouts drop to 20%. That means that your broker must sell more than $1 million of products every year to survive. Brokers earn 25%-33% of the $300,000 revenue target or about $75,000 gross. You may be better off on your own since the pressure to sell you may become greater. The best investors say: “Snoring is the best way to create wealth.” amazon.com/Snoring-Best-Way-Create-Wealth/

MetLife is cutting the benefits of its annuity
Insurers are selling to investors’ fears by promising to pay a minimum monthly benefit sometime in the future: Talk of ending Social Security/pensions with market volitility.
Much of insurer’s cuts have been driven by big sales of the Guaranteed Minimum Income Benefit Max living-benefits rider, which has prompted MetLife to reduce the payout twice since launching the product in May. The GMIB Max, first released in May, provided a 6% income benefit and quickly became a favorite of advisers. Historically, this rate beats most conservative investments. However, when inflation goes back to the 3% norm, investors will be paying the annuity surrender charge to get out of the GMIB. Members take a planning approach to higher future retirement income rates using our help: Do Not Buy That Annuity: Create a Guaranteed Income plus Build your Wealth Reserve https://www.createspace.com/3716857


Who are the 1% class that protestors are talking about?
Anyone reporting $343,927 as AGI income according to the IRS. There were fewer than 1.4 million households that qualified for entry. They earned nearly 17% of the nation's income and paid roughly 37% of its income tax. Most of the top 1-percenters made over $1 million: $960,000, on average. Financial professionals made up about 14% of the top rank. Executives, managers and supervisors working outside of finance accounted for 31%. Medical professionals came in at 15.7%, while lawyers made up 8.4%. The problem is that this group’s income has doubled while the rest of us had no real increase. With so many descent jobs disappearing, there is no hope for improvement. Productivity gains have gone to the top. Workers do more for less. Their pensions have been stolen, according to amazon.com/Retirement-Heist-Companies-Plunder-American/dp/1591843332.

Is Auto insurance rate shopping worth it?
Dan of NJ just saved over $400 a year. He got a notice from his insurer last June that it was raising his rates through no fault of his own. In fact he had just completed the AARP safe driving course for another discount. The insurer was raising rates about $80 a year for his 2 older cars with full coverage for 2 older drivers. Recently, his college alum association sent a letter offering to cut rates with a new carrier. Dan’s wife had received a letter last month from her professional association offering to cut rates. Dan took one hour to shop both alternatives for exactly the same coverage. He then called his present carrier to see if they could beat the new rates from his alum’s company. No, they couldn’t. Dan signed up with the new carrier and saw his costs drop to $1,220 a year. He also learned that his old policy had a higher PIP benefit than he needed. PIP coverage pays his doctor bills AFTER his comprehensive health insurance reaches its max. But Dan has great coverage and will never have to use the small auto policy amount. He was wasted premiums every year for over 20 years. Dan used our Guide to buy only what he needed: amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X/


Do you wonder why the Occupy Wall Streeters are angry?
Your favorite companies like GE are making record profits AND getting a refund from your federal withholding tax payments. What is wrong with this picture. 30 companies paid nothing and some got refunds. 280 paid less than 10% of their profits. Wells Fargo had $49 billion in profits in 2008 through 2010, yet received a tax benefit of $651 million. http://www.ctj.org/pdf/12corps060111.pdf

SCAMS

Follow up on Bank America putting our money at risk AGAIN!
Two Democratic members of Congress on Thursday sent letters to Treasury Secretary Tim Geithner and other regulators expressing concern that Bank of America Corp had transferred derivatives from its Merrill Lynch subsidiary to its banking unit. If the brokerage bets go bad, we taxpayers would have to bailout the FDIC banking unit. The Fed gave BOA a pass to do this despite the new law. Have we not learned?

Debit fee issue becomes marketing tool--BoA gives in for now
Some large banks have withdrawn plans to raise fees in light of opposition to Bank American’s threat of $5 a month. Chase and Wells Fargo are joining the list of banks that won’t be charging customers to use their debit cards, as the backlash over Bank of America’s planned $5 monthly fee continues. Signs like, “I bailed out the banks and all I got was a $5 debit card fee” have been spotted the Occupy Wall Street protest in New York. Credit unions and community banks nationwide are reporting huge spikes in new accounts as consumers seek no-fee options. BoA gave up raising fee.

IAN
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Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
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