Connections Magazine - July/August

Connections The magazine from Financial Independence Group • v13 Issue 3 • July/August 2013

EMBRACE YOUR BUSINESS ENVIRONMENT

FIG | Cain’s Corner

NEW EXPECTATIONS When Financial Independence Group began in 1976, we had no computers, no fax machines, and one employee. Needless to say, much has changed over the last thirty seven years. However, the values of the company were established back then and continue to be the same as has our mission. The goal was to create a company that could effectively serve as a back office to the independent insurance agent. This would include introducing established insurance companies and their products to the agent, and then offer training on the value and benefits of those products. We offered assistance in sales, contracting, processing of paperwork, commissions and problem solving. We were the “Model A” of the IMO world. We were called an agency or a managing general agent or a broker general agent, and this evolved into the Insurance Marketing Organization.

“We are here to

help you and to respond to your needs in meeting the new expectations you face from your clients, the insurance carriers, and new regulations.”

The IMO continues to do most of the tasks that were previously mentioned, but because of the changing industry landscape, much more is expected. Many of the changes in the face of the IMO have been brought about due to the way many, and perhaps most, insurance companies distribute products. There are few companies that still have career agents who sell their products. Most companies manufacture and support their products through the independent marketing organizations and depend on them for recruiting and motivating their field force to produce sales.

You, the independent agent, have also influenced how marketing organizations perform. Most of you still rely on your IMO to be your “back office”. However, you now expect much more. The competitiveness of the IMO world has helped shape your expectations as we have offered more options for marketing programs and incentives. The “new” IMO does not attempt to tell you what to do, but seeks to find alternative ways for you to develop your practice. It always remains your choice as to products you present to your clients, and the method in which you present them. The role of today’s IMO is to work with the insurance company and with you, the agent, in creating a compliant and suitable financial solution for your client. Foremost among our goals is to always put the client and his need first, by presenting the best solutions possible.

My purpose in sharing this bit of history with you is because your practice is also changing. There are more requirements and changes being introduced by the insurance company and the IMO which necessitates some alterations as to how you do business. We are here to help you and to respond to your needs in meeting the new expectations you face from your clients, the insurance carriers, and new regulations. It will take planning on your part to meet those expectations, but by working together we can accomplish that. Start now in planning for the next six months, and for 2014. The beginnings of an organization are important, but meeting the new demands of our ever-changing industry is crucial.

William H. Cain

CEO, Financial Independence Group, Inc.

CONNECTIONS magazine | Issue 3 2013

www.figmarketing.com

Contents | FIG

MVP September 12 & 13

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2 SUITABILITY FOR CLIENTS FIG prides ourselves on providing as many training opportunities and business building programs to our advisors as possible.

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MOST VALUABLE PRODUCER Join, FIG for our September event where you can learn from top advisors in our industry.

6 STRATEGIC ACTION

Whether it’s due to good business sense or simply a desire to increase profitability in tougher economic conditions, many financial advisory firms are taking steps to create greater efficiency.

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TOP 20 CHALLENGE: JACKSONVILLE, FL The top 20 agents with at least 200,000 paid CPCs between June 1 and August 31 will qualify!

www.figmarketing.com

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9 THE PR INSIDER

Stories and segments about hometown people, events and issues are the one thing local outlets have to offer that can’t be found on a million websites, so if you have a good story to share, you’ll likely find more receptive listeners locally.

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EKG vs ECHOCARDIOGRAM The intent of this article is not to give you a long dissertation on EKGs and echocardiograms, but give an understanding of the differences at a high level.

12 ALLIANZ PREFERRED

The time has come to revisit the unique opportunities that Allianz Life has to offer the independent advisor, not to mention the product mix that they offer to help you better serve your clients.

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JOIN FIG AT OUR EXCLUSIVE PRODUCER EVENTS.

We strive to ensure that all of our producers maintain an edge over the competition by offering producer meetings and events that accelerate your business. From Most Valuable Producer (MVP) meetings where you can further your industry knowledge to our Annual Sales Symposium, we position you to build your business on a foundation of success! Join us at any of our upcoming events to take the next step in your business.

SEPT. MVP

FEB.

-

26-27,

2013

10-12,

2014

Charlotte,

NC

Symposium - Glendale, AZ

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FIG | Suitability

Suitability for Clients

By Hope Riley | New Business Manager - Annuity, LTC and DI Divisions

800.527.1155 ext 131 | hope.riley@figmarketing.com

When choosing an annuity, a client wants the latest and greatest product with all of the added bells and whistles.

Not only must the agent suggest a product that meets the client’s requirements, but the agent must also recommend a product which is conducive to the client’s financial situation. In the insurance world, carriers refer to this process as the agent ensuring the product is “suitable” for the client.

How can an advisor ensure a product is suitable? Many carriers view an agent’s work as the first step in the suitability process. Carriers trust that an agent will refrain from submitting an application if the agent does not see value for the client based on research conducted.

The following are key actions an advisor should take to ascertain whether a product is suitable: •Interview the client to obtain current and future financial needs and goals •Ask the client to complete a financial inventory form, cataloguing all investments, inforce insurance, etc.

•Initiate the following if a replacement is involved:

-Request up-to-date investment statements

-Propose a phone call to the current insurance company/entity while the client is present to obtain product features, riders, fees, surrender charges, values, caps, etc.

To help advisors navigate suitability, a few carriers have outlined instances when they typically will not accept a client’s application. For example, Fidelity and Guaranty and Allianz have published guidelines and criteria for liquidity, surrender charges and household incomes. Overall, carriers tend to request investment statements in cases where a replacement is involved. Carriers also require clarification when the client has a negative disposable income, or if the client’s financial situation does not meet

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CONNECTIONS magazine | Issue 3 2013

established guidelines. If the client is losing a benefit, the carrier will question the client’s knowledge of the loss or rationale as to why the new product’s features outweigh losing such a benefit with the current carrier.

Remember, insurance companies want your business and the client’s business. However, carriers are not willing to issue a policy if it is not a right fit for the client. A disgruntled and misinformed client will only cause headaches in the future for the carrier and the agent. A completed suitability review ensures all parties involved, from the client, to the agent, to the insurance company, is comfortable with the sale based on the information presented.

Suitability guidelines and reference materials can be found on most carrier websites. If you need further assistance, please contact your FIG Annuity Marketer.

Helpful Suitability Hints: When determining if a product is right for the client, carriers look at the client’s life situation, not just dollar figures provided on the Suitability form. For example, the following factors could be considered when determining whether or not to approve an application: •If a retirement account is involved, is the client at least 59 ½ years old?

•Is the client employed? If not, is there a spouse? If so, is the spouse still working?

•Does the client own long-term care insurance?

•Does the client have funds in other accounts that could be accessed without penalties? www.figmarketing.com

Upcoming Events | FIG

Knock your sales out of the park!

Our lineup now includes a new death benefit rider Knock your sales out of the park!

The Inheritance Enhancer rider from Great American Life offers your clients: Our lineup now includes a new death benefit rider » 7% guaranteed rollup of death benefit base » 15-year rollup period A death benefit to help build legacy forAmerican their heirsLife offers your clients: The»Inheritance Enhancer ridera from Great »» Death benefit payment for their 7% guaranteed rollup of options death benefit basebeneficiaries »» Refund rider charges in certain circumstances 15-year of rollup period SM

®

SM

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» our A death benefit to help build a legacy for atheir With complete lineup, your clients can select riderheirs that provides income, » Death benefit a death benefit — orpayment both! options for their beneficiaries » Refund of rider charges in certain circumstances With our complete lineup, your clients can select a rider that provides income, INCOME + INCOME DEATH BENEFIT DEATH BENEFIT a death benefit — or both!

IncomeSecure Inheritance Enhancer SM

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IncomeSustainer Plus ®

INCOME IncomeSecure

DEATH BENEFIT Inheritance Enhancer

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INCOME + DEATH BENEFIT IncomeSustainer Plus ®

The Inheritance Enhancer (R6042513NW), IncomeSecure (R6036711NW) and IncomeSustainer Plus (R6032810NW), issued by Great American Life Insurance Company , are optional riders for which there are annual charges. Please refer to the rider for definitions and complete terms and conditions, as this is a summary of the rider’s features. For producer use only. Not for use in sales solicitation. COM13078 ®

The Inheritance Enhancer (R6042513NW), IncomeSecure (R6036711NW) and IncomeSustainer Plus (R6032810NW), issued by Great American Life Insurance Company , are optional riders for which there are annual charges. Please refer to the rider for definitions and complete terms and conditions, as this is a summary of the rider’s features. For producer www.figmarketing.com CONNECTIONS use only. Not for use in sales solicitation. COM13078 ®

magazine | Issue 3 2013

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FIG | September MVP

MVP September 26th-27th

By Shawn Sigler | Director of Sales & Distribution 800.527.1155 ext. 146 | shawn.sigler@figmarketing.com

FIG’s MVP Meeting: We invite you to hear from some of the industry’s top insurance producers and what sets FIG apart from its competitors.

On September 26 and 27, FIG will be hosting our Most Valuable Producer (MVP) meeting in Concord, NC. We are thrilled to have you here so that you can learn more about us, and so that we can get to know you as well.

During this day and a half, you will be exposed to all things FIG – our culture, our history, our programs, our incentives, and our people. You will learn how to get involved with FIG and why it’s more important than ever to develop with a relationship with a marketing organization who is truly independent.

Above all else, however, you will hear from some of FIG’s top producers – what makes them tick and how they’ve become so successful over the years in their respective businesses. Our goal in these meetings is to expose you to top producers so that you can take back at least one thing and implement it in your practice. I think what you’ll find when you attend is that you’ll take back several things.

You will hear from: • Rao Garuda – Tax Planning Strategies - Rao will show you how to identify, design and ultimately close advanced insurance cases with your affluent prospects and clients using tax planning strategies.

• David McKnight – Secrets of a Successful Life Insurance Seminar - David will take you through one of the most dynamic Indexed Universal Life workshops around today. You will see first-hand how David differentiates himself from the competition. This is definitely a presentation you will not want to miss.

• Curtis Cloke – Income Planning Academy - Curtis is a renowned Income Planning specialist who will take you through case design ideas and teach you how to incorporate the various software tools available through FIG when working with your clients.

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• Hal Schwartz - Life Insurance as an Accumulation Vehicle - Learn about case design strategy as it relates to permanent life insurance products. Hal will also discuss how to position cash value life insurance to a client, and how to position IUL over other types of life insurance products.

• Gerry Sacks - Advanced Life Insurance Strategies - Former Forum 400 President and life insurance legend Gerry Sacks will show you how he has come to be the go-to guy when it comes to billionaire clients. He will take you through some advanced case design and share some stories that will certainly have you smiling.

After taking notes on all the ideas that these top producers share with you, you will have the opportunity to learn about FIG’s All Points Media offering – a way for you to tap into FIG’s creative resources to develop a complete branding strategy and media action plan. This is a must-see presentation!

You will also hear from Platinum Advisor Marketing – set yourself apart by using Platinum’s turnkey marketing programs and turn your best clients into “raving fans!”

Finally, you will hear how to integrate managed money into your practice – if you’re not already doing it, learn from our partners at AlphaStar Capital Management.

Two final thoughts: 1) Get registered today 2) Bring a pen and a few notebooks with you to Concord – you won’t want to miss out on this information.

We hope you can join us in September, and we look forward to seeing you there!

www.figmarketing.com

September MVP | FIG

FIG | Strategic Action

Turn a Strategy into action

By Nicole Newlin | Partner, Pathfinder Strategic Solutions Have you ever come home from a conference or read an article or heard from another advisor about a great new strategy to make your business more efficient, and thought, “I want to do that!

Wouldn’t it be great to reduce our operational challenges, provide more consistent service to our clients and better track how we’re doing? Let’s get started!”

Whether it’s due to good business sense or simply a desire to increase profitability in tougher economic conditions, many financial advisory firms are taking steps to create greater efficiency. It’s not surprising that the top-performing businesses are best at recognizing this need and remaining nimble enough to make the required changes. As the 2012 Investment News/Moss Adams Financial Performance Study shows, those with the highest level of discipline and focus in achieving greater productivity and maximizing capacity outpace others in client acquisition and retention and generate 33% more revenue per client.

These business owners think that a more comprehensive and consistent client advice process, better variety in product, access to improved analytics/reporting, a CRM or some type of new turn-key automation will reduce their operational challenges and provide more consistent service and support to their

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Strategic Action | FIG

clients. Unfortunately, the lack of planning before implementation causes disruptions that can carry over for years and damage your client experience while lowering opportunities for referrals.

At Pathfinder Strategic Solutions, we believe that it is essential to have the following details in place before you launch any strategy into implementation: • A clearly articulated overall firm vision and strategy • Defined goals and expectations that work in tandem with that vision and strategy and provide the details of how and why • Objectives that outline how the plan will be adopted internally, benefits expected and perspective on how they envision this decision making them saleable and profitable

Whether you are in the midst of adjusting your strategy or want to make major enhancements, business consulting can help.

Working in partnership, a business consultant will help you implement a roadmap that defines where you want your business to go, assess where you are now and provide a clear, customized blueprint to follow with a targeted project plan and specific tasks and timelines. The competitive advantage lies with those advisors who embed their strategic plan deep into their business and as a result see major benefits in productivity and profitability.

Contact All Points Media for a review of their Business Consulting Services.

• Clear explanation for how the client experience and value proposition are connected in a holistic fashion to the strategy www.figmarketing.com

CONNECTIONS magazine | Issue 3 2013

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FIG | Top 20 Trip

Top 20 Challenge

By Phil Graham | Chief Sales Officer

800.527.1155 ext 121 | phil.graham@figmarketing.com

One of the traditions at FIG is bringing our Top 20 advisors together for an annual event much like the tradition of the Florida-Georgia football rivalry which has been played nearly every year since 1915. It is one of the greatest rivalry games in college football, and since 1933 it has been held in Jacksonville, Florida, with only two exceptions, making it one of the few remaining neutralsite rivalries. Of course any rivalry wouldn’t be complete without some kind of dispute. According to Georgia fans they lead the series 49-40-2 but Florida fans claim the record to be 48-40-2 due to a dispute over the 1904 game. Either way both teams agree Georgia leads the series.

golfers). TPC Sawgrass is the home of THE PLAYERS Championship, is the No. 9-ranked resort golf course in the United Sates and the top-ranked course in Flordia, by Golfweek magazine. I wonder how many golf balls our Top 20 will put in the water on the famed 17th island green?

Now if attending this “bucket-list” game in a private suite wasn’t enough, our Top 20 group will be playing golf Sunday at the TPC Sawgrass course (Spa Day for non-

Qualification for this event started June 1st and runs through August 31st. To qualify you need to be in the Top 20 during these dates. In order to level the playing field everyone

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is starting at $0 production June 1st and we include all business with FIG by combining your annuity, life, LTC and DI production. This event is something you don’t want to miss. I hope to see you in Jacksonville, FL November 1st-3rd. Good Luck!

Friday before everything gets started FIG will host our legendary Top 20 business session and dinner at the Marriott Sawgrass. This networking and educational dinner will be full of brainstorming, idea sharing and relationship building with some of the top advisors in the country. This dinner is always a great way to kick off the weekend.

CONNECTIONS magazine | Issue 3 2013

www.figmarketing.com

The PR Insider | FIG

How to get GREAT PUBLICITY in your hometown When entrepreneurs and authors start thinking about publicity for their product or book, their thoughts often jump immediately to the nationals - Good Morning America and The Ellen Degeneres Show; The New York Times; Sean Hannity.

Granted, those are great TV, newspaper and radio venues.

But frankly, the odds are against you. There is a great deal of competition - including A-list celebrities - for a very limited number of guest opportunities. That’s why I tell people all the time, don’t be so quick to give your local media the short shrift.

Local shows and publications can position you as an expert and a celebrity. They make it possible for the national media to see you and, remember, the national media is looking for news all the time. Where they find it is often in other media.

And local media are far more accessible - even more so than just 10 years ago. With state, national and international news now available from myriad sources online, many local outlets focus on their communities. Stories and segments about hometown people, events and issues are the one thing they have to offer that can’t be found on a million websites, so if you have a good story to share, you’ll likely find more receptive listeners locally.

How to get started? Here are some suggestions: Look for radio and TV shows that have a format for guests. Search online for the stations that broadcast in your area and visit their websites. Look over show descriptions and, if past shows are archived online, take a minute to listen and/or watch. If they’re not archived, jot down the times and days they air, so you can watch or listen to see if the show’s the right fit for you and your message. Pay attention to the topics, the host, the kinds of questions asked and the guests. Think about whether you can tie your message into that format.

Look over local newspapers, magazines and online publications for opportunities. Read the columns and the articles; what sorts of content do the various editors select?

What topics, tone and length? Could you contribute an www.figmarketing.com

article, guest column or blog post? Might they be interested in photographs you can provide with detailed caption information? Or, if you think a reporter might be interested in writing your story, look for the appropriate beat reporter. Be creative: If your message sounds like an ad, you’ll be quickly routed to the advertising department. To get publicity, you have to contribute something of value to the publication’s audience.

Think about what you’ll say before you call or email.

Your job is to catch the interest of a busy editor, show host or producer, or reporter, so plan your pitch. You might start by demonstrating that you’re familiar with the show or publication: “I have a topic that would be perfect for Dottie Dolittle’s show about relationships,” or “I’d love to write about how I lost 100 pounds for your ‘Real-Life Losers’ column.”

Explain your segment/story idea as succinctly as possible and provide a phone number where you can be reached at any time during the day. If you start with a phone call, follow up with an email a few days later and vice versa.

Remember, you’re providing content, not selling. The media will fall in love with you if you provide great, interesting content that resonates with their audience. They will fall out of love - just like that! - if you use the platform they give you to pitch your book, product or service. The payoff for you being a guest, writing an article or being featured in an article is that you will usually be identified by your name, claim to fame and website: “This is Crazy Joe from Crazy Joe’s Coffee, crazyjoecoffee.com.” And that’s where celebrity begins.

If you dream of someday dancing with Ellen Degeneres or being interviewed by Sean Hannity, don’t give up! Instead, start working toward that by plugging into your hometown media.

Where do you think those big national outlets get their ideas?

There’s no place like home!

P.S. If you want help getting great publicity in your hometown, give your FIG Marketing Consultant a call.

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FIG | Underwriting

EKG vs. Echocardiogram

By John Voelker, FLMI | Underwriting Consultant 800.527.1155 | info@figmarketing.com

EKG vs. Echocardiogram I often get asked, “What is the difference between an EKG (electrocardiogram) and an echo (echocardiogram)?”

While they are both heart tests, they are very different and “test” for different components of the heart’s function.

The intent of this article is not to give you a long dissertation on EKGs and echocardiograms, but give an understanding of the differences at a high level. Hopefully, the next few paragraphs will help in understanding the difference.

Electrocardiogram (EKG) Before we get into the difference between and EKG and an echo, I want to cover another question I often get asked. That is, “What is the difference between an EKG and an ECG?” The answer to that is “absolutely nothing” as they are the same test. The electrocardiogram was invented in Europe and spelled elektrokardiogram, hence EKG. As cardio is spelled with a “c” in the English language, you will sometimes see the interchangeable usage of ECG. The EKG is a simple, non-invasive and inexpensive test that is a routine requirement for many life insurance applicants. Each heart beat starts with an electrical impulse.

It is these electrical impulses that the EKG measures and it can detect any electrical abnormalities

such as heart rate abnormalities, heart rhythm abnormalities, coronary artery disease or heart damage. There are several other abnormalities that I will not go into a dissertation about as mentioned, but these abnormalities can warrant ratings and/or postponements in underwriting. When there are significant abnormalities, the physician may request that a stress test (which is basically an EKG that is continuously monitored while one is walking/running on a treadmill) be completed as that is a better test for predicting the probability of any cardiac problems.

Echocardiogram (echo) Unlike the EKG, the echocardiogram is a relatively expensive test which is not a requirement a paramed examiner or facility can complete.

Like the EKG, it is non-invasive but is a bit more extensive than an EKG. It is an ultrasound of the heart that is used to actually visualize and give a picture of the heart’s structure, size and how it functions (i.e. blood flow through the chambers, etc.). Whereas the EKG just monitors the electrical impulses, the echo measures the size of the heart chambers and walls as well as shows how the heart is actually beating. It is a very useful cardiac test that is widely used.

an underwriting standpoint, these impairments can run the whole gamut from Standard to Decline based on the significance and severity of the abnormalities. For example, mild mitral valve prolapse could be Standard, whereas severe aortic insufficiency (which could actually lead to an individual requiring their aortic valve to be replaced) could warrant a decline.

Summary To summarize, an EKG is an inexpensive, non-invasive test that measures the heart’s electrical output and the echocardiogram is a relatively expensive ultrasound of the heart that measures the heart’s size and function. Your FIG Marketing/ New Business/Underwriting team is here for you so always feel free to contact us with any questions that you may have.

The echo can detect such impairments as cardiomyopathies, decreased heart function, heart valve disease, and enlarged heart. From

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SEPTEMBER 26-27, 2013 | CONCORD, NC

THURSDAY, SEPTEMBER 26

FRIDAY, SEPTEMBER 27

8:00-8:30 Registration 8:30-9:15 Welcoming Comments 9:15-10:30 Tax Planning Strategies - Rao Garuda

8:30-9:30 How to Get Involved with FIG

10:30-10:45 Break 10:45-12:00 Secrets Of Successful Life Insurance Seminar - David McKnight

9:30-10:30 What is All Points Media?

12:00-1:00 Lunch 1:00-2:15 Incoming Planning Academy - Curtis Cloke

10:30-10:45 Break

Identify, design and ultimately close advanced insurance cases with your affluent prospects and clients using tax planning strategies.

David will take you through one of the most dynamic IUL workshops around today. You will see first hand how David differentiates himself from the competition. A presentation you will not want to miss.

Curtis is a renown Income Planning specialist that will take you through case design ideas and teach you how to incorporate the various software tools available through FIG when closing with a client.

Learn how FIG has become one of the top insurance marketing organizations in the nation and how we separate ourselves from the competition. Discover what FIG has to offer and learn how you can get involved in one of our many business building programs.

Do you have a complete branding strategy and media action plan that separates your business from the competition?

Experience why top agents trust their branding and marketing to FIG's in-house marketing department.

10:45-11:15 Effective Client Marketing: Platinum Advisor

Platinum was founded to provide independent financial advisors with turnkey marketing and practice management strategies.

2:15-2:30 Break 2:30-3:45 Life Insurance as an Accumulation Vehicle - Hal Schwartz

11:15-12:00 FIG Incentives

3:45-5:00 Advanced Life Insurance Strategies - Gerry Sacks

12:00-12:45 Integrating Managed Money Into Your Practice: Steve Osterink, Jr. & Brian Williams

Learn about case design strategy as it relates to IUL products. Hal will also discuss how to position cash value life insurance to a client, and how to position IUL over other types of life insurance products.

Former Forum 400 President and Life Insurance legend Gerry Sacks will show you how he has come to be the go-to guy when it comes to billionaire clients. He will take you through some advanced case design and share some stories that will certainly have you smiling.

5:00-5:15 Break 5:15-5:45 Aviva 5:45-6:45 Panel Discussion

Your hard work will be rewarded through some of the top incentive programs in the industry, including exclusive trips , referral compensation, personal profit sharing and much more.

AlphaStar Capital Management provides discretionary portfolio management to individual client families and institutional investors through relationships with financial advisors.

12:45-1:00 Closing Comments

Each of the speakers will gather for a Q & A session

FINANCIAL INDEPENDENCE GROUP, INC. 19520 West Catawba Ave., Suite 200, Cornelius, NC 28031 www.figmarketing.com | 800.527.1155 | info@figmarketing.com

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FIG | Allianz Preferred

Allianz Preferred

By Jason Rindskopf | Marketing Consultant - Annuity Division

800.527.1155 ext 163 | jason.rindskopf@figmarketing.com

Allianz Life; chances are this is a familiar name, and it’s likely that you’ve even done business with them at some point in your career. However, if you’re like many of our top advisors, it might have been a while since you’ve taken a close look at them. If so, the time has come to revisit the unique opportunities that they offer to the independent advisor, not to mention the product mix that they offer to help you better serve your clients.

Allianz has always been considered a pioneer in our marketplace by continually offering creative product innovation, a tremendous service model to our advisor base, and perhaps most importantly, commitment to the value that they offer to their end consumer, your client.

Over the course of the last year or so, they’ve continued on this path by rolling out their next generation of products, the Allianz Preferred Series. The Preferred product line offers a suite of products that allow you to achieve multiple objectives for your clients, while building in a package of advisor benefits that is second to none to reward you for your hard work. If you aren’t as familiar with the Preferred line allow me to touch on a couple of unique attributes of the contract.

First, the contract is separate from their standard line of products. Only advisors who are contracted on the Preferred side are able to sell these products. Secondly, in order to become a Preferred representative, there is certain criteria that has to be met just to be considered for the contract. In the rollout of their Preferred line of products, Allianz made a very conscientious effort to create some exclusivity for those who can gain access to them. By creating such a model, they’ve also been able to dramatically enhance the overall value proposition for their advisors, from advanced training opportunities, to increased commission grids, to additional perks and discounts that you’ll have immediate access to.

Part of the initial screening process that you should be aware of to gain access to the Preferred Series and their unique benefits, are the following:

1. Masters Club in one of the past five years

or twice in the past 10 years OR

2. Registered representative active with a broker OR

3. Active investment advisory representative

for the last three consecutive years OR

4. $60,000 in commissions from any

insurance business including P&C and medical OR

5. One of the following active professional

licenses or designations (CFA,

CFP, ChFC, CLU, CPA, LUTC/LUTCF)

From a product standpoint, I’d like to take a moment to touch on a couple key features of two of their most popular products, the Allianz 222 and the Allianz 360. The 222 offers tremendous flexibility for conservative clients who may be unsure about the specific role that their accounts will play in retirement. By offering enhanced benefits for periodic or lifetime income, confinement, and even death benefit at no cost, the 222 has proven to be a tremendous tool in the portfolio of a lot of clients.

On the other hand, if you have a client who is more dialed in to their specific needs pertaining specifically to lifetime income planning, the 360 offers your clients the highest payout factors in the industry. What this means for your clients is more guaranteed income in most cases, while also offering the option of guaranteed increasing income payments for those concerned with the threat that inflation poses to their retirement dollars. Finally, both products have full access to the accumulation value after 10 years, as well as some of the most diverse allocation options in the marketplace.

• Pass a background check (even if you’re

contracted with the standard line) If you haven’t had a chance to explore the Preferred Series, • Agree not to accept any compensation for the sale I encourage you to give your Annuity Marketing Consultant a of Allianz Preferred products beyond compensation call to learn more and see how these solutions can fit into your paid by them such as (cash, marketing planning. reimbursement, profit-sharing etc.)

• Meet one or more of the following factors:

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Ask the Experts | FIG

Ask The Experts

By Linas Sudzius | Owner at ICS Law Group

Consultant at Advanced Underwriting Consultants

The professionals at Advanced Underwriting Consultants (AUC) answer the tax questions posed by producers. Here are two recent ones.

Question: My client owns a modified endowment (MEC) life insurance policy that she wants to exchange for an immediate annuity. What are the tax consequences of doing so?

Answer: The exchange of a life contract for an annuity is tax-free under Code Section 1035. That’s true whether it’s a “regular” life contract being traded for an annuity or a MEC that’s being traded.

If a MEC is traded for a SPIA, there’s no tax recognition at the time of transfer. Each of the SPIA payments will each be partly a recovery of basis (based on the basis from the MEC life policy) and partly ordinary income.

The ordinary income portion of the payments will also be subject to the 10% penalty tax if the taxpayer is younger than 59 ½ and if the SPIA payout period is for a duration shorter than the taxpayer’s life expectancy.

Question: My client is 73, and she missed taking required minimum distributions (RMDs) from her IRA for 2011 and 2012. We just discovered the mistake.

What do we need to do with regard to past tax returns?

• the taxpayer convinces the IRS that the failure to take the RMD was due to reasonable error, and • reasonable steps are being taken to fix the problem.

A taxpayer applying for relief from the penalty tax must file IRS Form 5329 for the year in question and attach a letter of explanation. The instructions say that if the return is already filed, then Form 5329 can be filed separately for each year if it won’t otherwise change taxable income.

That means that for calendar year 2011, the client can file a Form 5329 by itself.

For calendar year 2012, if the client has not yet filed a final income tax return for the year, Form 5329 would be filed with the return. If the return has already been filed for 2012, Form 5329 would be filed by itself.

To maximize her chances that the IRS will waive the penalty tax, the taxpayer will want to take the RMDs she should have taken in 2011 and 2012 before filing the Form 5329s. That means the IRA distribution will show up as taxable on the calendar year 2013 return.

AUC is available through your Marketing Consultant to answer your tough questions.

Answer: If the client turned 70 ½ in calendar year 2010, she had until April 1, 2011 to take her RMD. Her second RMD would have been due by December 31 of 2011, and the third one was due on or before December 31, 2012.

If the client fails to take the RMD by the deadline, the IRS imposes a special penalty tax of 50% on the amount that should have been distributed. The penalty tax may be waived if www.figmarketing.com

CONNECTIONS magazine | Issue 3 2013

13

Introducing

THE ALL NEW Introducing

ALLALLPOINTS THE NEW MEDIA

ALL POINTS MEDIA Powered by Financial Independence Group

Financial Independence Group is committed to providing you with high end resources to take your business www.apmstrategies.com toINFO the next level. Offering All Points Media is a value and opportunity we are proud to make available to you!

Powered Contact

by Financial Group your FIGIndependence marketer, 1.800.527.1155

Understanding your business is a key part of our process to deliver tailored and creative services. Whether your needs involve an impactful logo design, a modern website, professional video production, enhanced seminar INFO event marketing, radio programming, outdoor or television advertising, we have the ability to facilitate a campaign.

FIG marketer, 1.800.527.1155 Contact Contact your FIG your Marketing Consultant for more information - 800.527.1155 or visit www.apmstrategies.com

www.apmstrategies.com

Staff Spotlight | FIG

FIG Staff Spotlight 1-800-527-1155 ext 154 | anita.rivera@figmarketing.com

Anita Rivera Administrative Assistant

Anita was born and raised in Norwalk, Connecticut and then moved to Charlotte, North Carolina in 2008. Previously, she worked as an Office Manager running an E-Commerce business, including the import of security and electronic goods from overseas for domestic and international sale.

In 2008, Anita joined Financial Independence Group as an Administrative Assistant. In this role it is her responsibility to be cross-trained in all areas of administration including contracting and new business processes and be available to work within those departments should we receive an influx of business or have absences. In her spare time, Anita enjoys spending time with her two daughters, family and friends, as well as music, volunteering at church, cultural events, comedy shows, and trips.

JOIN US!

FEBRUARY 10-12, 2014 The planning is well underway. All of us at FIG are very excited to announce that our 2014 Sales Symposium will be held in Glendale, Arizona, February 10-12. We have a schedule packed with inspiring speakers, valuable industry information, entertainment, and networking with the industry’s top producers.

JOE THEISMANN

Former Star NFL Quarterback

www.figmarketing.com

JOE JORDAN

Behavioral Finance Expert

ANDY FRIEDMAN

The Washington Update

DAN ALLISON

Business Consultant

CONNECTIONS magazine | Issue 3 2013

15

FIG | Staff Directory

TOP 20 CHALLENGE Jacksonville, FL | November 1-3, 2013

The top 20 agents with at least 200,000 paid CPCs between June 1 and August 31 will qualify!

EXECUTIVE OFFICERS CHIEF EXECUTIVE OFFICER Bill Cain ext 106 bill@figmarketing.com CHIEF ADMINISTRATIVE OFFICER Ericka Cain ext 102 ericka@figmarketing.com CHIEF MARKETING OFFICER Jim Cooper ext 123 jim.cooper@figmarketing.com CHIEF OPERATING OFFICER Brian Williams ext 173 brian.williams@figmarketing.com CHIEF FINANCIAL OFFICER Mike Mullan ext 114 mike.mullan@figmarketing.com

All paid business will count towards the contest. Aviva, Allianz, and AEL paid business will count as 1.5 times credit.

ext 121

DIRECTORS DIRECTOR OF SALES & DISTRIBUTION Shawn Sigler ext 146 shawn.sigler@figmarketing.com

Friday, November 1 Business Meeting & Dinner - Marriott Sawgrass

DIRECTOR OF MARKETING WEST DIVISION Tony Ruggieri ext 203 tony.ruggieri@figmarketing.com

Saturday, November 2 Florida Gators v. Georgia Bulldogs Game in Private Suite Sunday, November 3 Golf at TPC Sawgrass (or Spa Day)

CHIEF SALES OFFICER Phil Graham phil@figmarketing.com

DIRECTOR OF ADMINISTRATIVE SERVICES Tracia Cericola ext 166 tracia@figmarketing.com SPONSORED BY

HR GENERALIST **This trip is for the writing level agent only and is based off of top GA level contracts. Also, this trip does not have any cash value and can not be given to a 3rd party if the qualifying producer is unable to attend. FIG reserves the right to cancel or change this incentive at any time.

16 CONNECTIONS magazine | Issue 3 2013

Bonnie Kennedy ext 137 bonnie.kennedy@figmarketing.com

www.figmarketing.com

At Your Service: The Staff of Financial Independence Group, Inc. MARKETING CONSULTANTS

ANNUITY DIVISION Brian Bailey brian.bailey@figmarketing.com

ext 110

Chad Blanton ext 170 chad.blanton@figmarketing.com

Rochelle Whalen, CLU® ext 119 rochelle.whalen@figmarketing.com

Jennifer Fries jennifer.fries@figmarketing.com

ext 237

Sean Cooper sean.cooper@figmarketing.com

ext 185

Tiffani Snow tiffani.snow@figmarketing.com

ext 171

TJ Whalen tj.whalen@figmarketing.com

ext 120

SUITABILITY SPECIALIST Melissa Lukacik ext 223 melissa.lukacik@figmarketing.com

Chip Lloyd chip.lloyd@figmarketing.com

ext 139

Chris Vance chris@figmarketing.com

ext 126

LTC DIVISION Alecia Barnette, CLTC ext 124 alecia.barnette@figmarketing.com

Dale Fornges dale.fornges@figmarketing.com

ext 213

Jamie Marin, CLTC jamie.marin@figmarketing.com

Dave Jacobs dave.jacobs@figmarketing.com

ext 111

Derek Bostian ext 144 derek.bostian@figmarketing.com Frances Stickel ext 218 frances.stickel@figmarketing.com

ext 168

DISABILITY Division Rick Christy rick.christy@figmarketing.com

ext 135

NEW BUSINESS MANAGER LIFE DIVISION Catherine Fales ext 208 catherine.fales@figmarketing.com

Impaired Risk Hunter Taylor hunter.taylor@figmarketing.com

ext 179

LIFE CASE MANAGERS Andie Barrett andie.barrett@figmarketing.com

ANNUITY MARKETING ASSOCIATES

Hamilton Morales ext 152 hamilton.morales@figmarketing.com

Cory Hargett cory.hargett@figmarketing.com

ext 165

Harold Dilema ext 149 harold.dilema@figmarketing.com

Erin Reardon erin.reardon@figmarketing.com

ext 160

James LeMay

james.lemay@figmarketing.com

Heather Stam heather.stam@figmarketing.com

ext 150

ext 158

Jason Rindskopf ext 163 jason.rindskopf@figmarketing.com Jay Robinson ext 125 james.robinson@figmarketing.com Jim Jacobson jim.jacobson@figmarketing.com

ext 369

Jon Hogan jon.hogan@figmarketing.com

ext 118

Josh Dearing josh.dearing@figmarketing.com

LTC AND DISABILITY CASE MANAGER Rochelle Harrison ext 103 rochelle.harrison@figmarketing.com

Meredith Phelps ext 184 meredith.phelps@figmarketing.com

MARKETING ASSISTANT ANNUITY DIVISION

Tonja Easley tonja.easley@figmarketing.com

ext 136

MARKETING ASSISTANT LIFE DIVISION

ext 217

Elizabeth Maddox ext 140 elizabeth.maddox@figmarketing.com Kira Warber ext 172 kira.warber@figmarketing.com Krista Rockwell ext 142 krista.rockwell@figmarketing.com Lindsay Burke ext 207 lindsay.burke@figmarketing.com Lindsay Sekura ext 210 lindsay.sekura@figmarketing.com LIFE CASE SUPPORT Brittany Tyner brittany.tyner@figmarketing.com

ext 224

Denise Wayne ext 209 denise.wayne@figmarketing.com

ext 174

Andrew Ball andrew.ball@figmarketing.com

ext 233

Jennifer Rafferty ext 225 jennifer.rafferty@figmarketing.com

Justin Faunce justin.faunce@figmarketing.com

ext 112

Craig Chast craig.chast@figmarketing.com

ext 232

Katie Small katie.small@figmarketing.com

ext 215

Karl Hoover karl.hoover@figmarketing.com

ext 122

Whitney Thompson ext 147 whitney.thompson@figmarketing.com

Kelly Schriber kelly.schriber@figmarketing.com

ext 212

Leslie Dunn leslie.dunn@figmarketing.com

ext 159

Lora Bennett lora.bennett@figmarketing.com

ext 156

Shari Bouck shari.bouck@figmarketing.com

ext 234

Wade Laughey ext 116 wade.laughey@figmarketing.com Walker Ham walker.ham@figmarketing.com

ext 127

MARKETING ASSISTANT LTC DIVISION

Elizabeth Gantt ext 204 elizabeth.gantt@figmarketing.com

ADMINISTRATIVE ASSOCIATES

LIFE DIVISION Shannon Blake ext 107 shannon.blake@figmarketing.com

CASE MANAGERS

Wes Tanner ext 108 wesley.tanner@figmarketing.com

NEW BUSINESS MANAGER ANNUITY, LTC & DI DIVISIONS Hope Riley hope.riley@figmarketing.com

LIFE DIVISION David Clark david.clark@figmarketing.com

ANNUITY CASE MANAGERS Amanda Wright ext 202 amanda.wright@figmarketing.com

ext 182

ext 131

Jonathan Padgett ext 169 jonathan.padgett@figmarketing.com

Amy Panknen ext 216 amy.panknen@figmarketing.com

Jordan Smith jordan.smith@figmarketing.com

ext 187

Audrey Gardner ext 141 audrey.gardner@figmarketing.com

Josh Martin josh.martin@figmarketing.com

ext 178

Kayla McLaughlin ext 214 kayla.mclaughlin@figmarketing.com

INTERNAL MARKETING COORDINATOR

Justin Edwards ext 164 justin.edwards@figmarketing.com

MARKETING PROGRAM SPECIALIST

Jimese Orange ext 113 jimese.orange@figmarketing.com

FINANCIAL PROGRAMS SPECIALIST

Kasey Kennedy ext 133 kasey.kennedy@figmarketing.com Laura Monteforte ext 109 laura.monteforte@figmarketing.com Tyler Taube tyler.taube@figmarketing.com

IT DEPARTMENT

James Harris Systems Engineer james.harris@figmarketing.com

ext 162

ext 176

Bret Peterson ext 167 IT Technician bret.peterson@figmarketing.com Tom Regnery Business Analyst tom.regnery@figmarketing.com

ext 203

Mendy Luther IT Analyst mendy.luther@figmarketing.com

ext 104

Andy Powell ext 229 Web Developer andrew.powell@figmarketing.com David Ferretti Web Developer david.ferretti@figmarketing.com Rich Skaretka Web Designer rich.skaretka@figmarketing.com

ext 177 ext 199

Stacey Conner ext 153 Team Lead / Web Developer stacey.conner@figmarketing.com

ADMINISTRATIVE ASSISTANTS

CONTRACTING

CONTRACTING MANAGER Robin Puckett ext 129 robin.puckett@figmarketing.com CONTRACTING SPECIALISTS Ashley Thomson ext 201 ashley.thomson@figmarketing.com Heather Adsit heather.adsit@figmarketing.com

Jennifer Shephard ext 117 jennifer.shephard@figmarketing.com

Anita Rivera anita.rivera@figmarketing.com

ext 154

Jessica Rose jessica.rose@figmarketing.com

ext 299

Kaitlin Burke kaitlin.burke@figmarketing.com

ext 221

ext 190

Lauren Corriher ext 219 lauren.corriher@figmarketing.com

Rachel Gibson ext 175 rachel.gibson@figmarketing.com

Tarayan Houston ext 230 tarayan.houston@figmarketing.com

Whitney Pulver ext 157 whitney.pulver@figmarketing.com

CORPORATE EVENTS SPECIALIST

Tara Vickers tara.vickers@figmarketing.com

ext 132

MARKETING MEDIA SPECIALIST

Alisa Ferrara alisa.ferrara@figmarketing.com

ext 161

RECEPTION

Pam Burns Receptionist pam.burns@figmarketing.com

ext 101

Trisha Darden ext 100 Office Assistant trisha.darden@figmarketing.com

FIG’s Main Office Contact Information

West Region Office Contact Information

19520 West Catawba Ave. Suite 200 Cornelius, NC 28031 800.527.1155 Phone • 704.895.5607 Fax Office Hours: 8:30 am - 5:30 pm EDT; Close at 5pm on Friday

15849 N. 71st Street, Suite 200, Scottsdale, AZ 85254 480.664.6666 Phone • 704.439.2365 Fax Office Hours: 8:30 am - 5:30 pm MST; Close at 5pm on Friday

PRSRT STD US Postage PAID Charlotte, NC Permit No. 471

19520 West Catawba Ave | Ste. 200 Cornelius, NC 28031

If you are receiving this issue and are not contracted with FIG, call today to ensure delivery of future issues. 800-527-1155

Thank You For Your Business!

Have a question or comment about the newsletter?

Please contact us at 1-800-527-1155 or email info@figmarketing.com

The subject matter featured within the articles of FIG’s “Connections” are intended for educational purposes only. FIG does not give any type of legal or tax advice. Please consult a qualified tax advisor or attorney regarding certain circumstances.

Are you on pace?

Earn points based on your paid production in FIG’s Personal Profit Sharing program.

FIG will total your points at the end of the

MARK YOUR CALENDAR FOR 2013!

• September 26-27, 2013

year and will pay you $1,000 for each point you have earned after meeting the 3 point minimum. Be sure you are on pace to take advantage of what Financial Independence Group has to offer.

Whether you are freshening up on your sales techniques or staying ahead of the curve with new technology, FIG’s MVP Events will arm you with the tools to help boost your sales and elevate your practice to the next level.