Volume 9, Issue 5 March 2011

The Report New slet ter o f NAIFA – Alameda County

The mission of NAIFA - Alameda County is to promote professional excellence and ethical standards through education, political involvement, community service and fellowship.

Volume 9, Issue 5 March 2011

� ANNUITIES�

�

There are two possible phases for an annuity: The accumulation phase in which the customer deposits and accu-mulates money into an account, and ; The distribution phase in which the insurance company makes income payments until the death of the annui-tants named in the contract.

It is possible to structure an annuity contract so that it has only the distribution phase; such a contract is called an immediate annuity. Annuity contracts with a deferral phase—deferred

annuities—are essentially two phase annuities, but only hav-ing growth of capital by investment in the accumulation phase (now the deferral phase), with no customer deposits. The phases of an annuity can be combined in the fusion of a retirement savings and retirement payment plan: the annuitant makes regular contributions to the annuity until a certain date and then receives regular payments from it until death. Sometimes there is a life insurance component added so that if the annuitant dies before annuity payments begin, a beneficiary gets either a lump sum or annuity pay-ments. Annuities that make payments in fixed amounts or in amounts that increase by a fixed percentage are called fixed annuities. Variable annuities, by contrast, pay amounts that vary according to the investment performance of a specified set of investments, typically bond and equity mu-tual funds. Variable annuities are used for many different ob-jectives. One common objective is deferral of the recognition of taxable gains. Money deposited in a variable annuity grows on a tax-deferred basis, so that taxes on investment gains are not due until a withdrawal is made. Variable annui-ties offer a variety of funds ("subaccounts") from various money managers. This gives investors the ability to move between subaccounts without incurring additional fees or sales charges. Happy St. Patrick’s Day, everyone!

See you all at Sequoyah Country Club!

Lien Nguyen, MBA, LUTCF President, 2010-2011

Join us for our meetings on the

third Thursday of the month.

Invite an associate to come with you to learn about the

benefits of being a NAIFA member.

General Meeting

Thursday, March 17 Sequoyah Country Club

4550 Heafey Rd., Oakland 94605

NAIFA Members - $15 Guests - $20

RSVP: myassociation@sbcglobal.net by noon March 16

__________________

10:30 - 11:15 a.m. Table Topic

Presenter:

Randhir Judge, FLIA, Esq., LUTCF Judge for Yourself, Inc.

Topic:

How to use annuities to provide a guaranteed retirement income for life”

__________________

11:30 a.m. Buffet-style Lunch

11:55 a.m. Guest Speaker’s presentation

”Estate Tax 2011 Update”

• Tax Relief

• Unemployment Insurance Reauthorization

• Job Creation Act of 2011

Speaker:

David Newacheck, JD, CLU, ChFC

David Newacheck has been a member of our association for over 10 years and is always willing to share his expertise. He received his JD at Pepperdine University and his practice in San Leandro includes, in addition to other areas, taxation law; estate planning law; wills law; and probate law David has the ability to explain complicated legal is-sues so we all understand them. Take advantage of this opportu-nity!

PAGE 2 THE REPORT VOLUME 9, ISSUE 5

Be Farsighted !

NAIFA – Alameda County general meetings are luncheons on the third Thursday of the month at the Sequoyah Country Club in Oakland.

March 17 - Estate Tax Update 2011 Speaker: David Newacheck, JD, CLU, ChFC April 21 - Long Term Care Speaker: Betty Lou Moglen, CLTC May 19 - Annual Meeting & Election; Disability Income

Awareness Month. Speaker: Jim Farden.

Goals to keep you on track for the 2012 Table

Production by March 2011

Commissions or Paid Premiums

Million Dollar Round Table (MDRT)

$ 22,250 $ 44,500

Court of the Table (COT)

$ 66,750 $ 133,500

Top of the Table (TOT)

$ 133,500 $ 267,000

David Grodin, MBA (4) Grodin Financial Services

Charles Ware, CLU (9)

UNUM

Thank You!Thank You!Thank You!Thank You!

The following members have renewed their commitment to their professional association

(Number indicates years of NAIFA membership)

Happy

St. Patrick’s Day!

PAGE 4

Board of Directors and

Officers

2009-2010

[

President Lien Nguyen, MBA, LUTCF 510-601-3333 President-Elect/Membership Jerry Garcia, CLU, ChFC, CASL 510-940-2450 National Committeeman/LUTC Brian Moos, CLU, LUTCF 510.792.3022 Sec. Treasurer/Immed. Past President Ernie Lopez, LUTCF 510-581-2414 Government Relations Ernestine Cohn 510.895.8846 Programs Dennis Tom, LUTCF 510.583.8006

_________________________ [

COMMITTEE CHAIR

Business Practices

Martha Olmstead, CLU, ChFC 510.601.3376

_________________________

Barbara Layson, Exec. Director 925-283-2520

Reach Other Members 24/7

Access the Membership Directory on our web site at www.naifaalameda.org

AdvisorToday www.advisortoday.com

Samples of web-exclusive articles:

Increase Sales with Actionable Emails Simplify your prospecting efforts with easy-to-digest emails. Having an Attitude of Gratitude Learn how to tap into a powerful and overlooked emo-tion with three simple tips.

Cutting out the Cop-Out Avoid sales excuses that stop you from winning cli-ents.

Clearing the Air Misconceptions create an opportunity to educate your clients and prospects.

Enroll Me as Part of the IFAPAC Team!

Local Association: NAIFA Alameda County (05-0668) Member Number ___________________________________

Name _______________________________________________________

Address ____________________________________________________ _____________________________________________________________ CITY STATE ZIP

Contribution Amount $ _______________

Contributor Levels Annual Contribution

Capitol $5,000 Emissary $2,500 to $4,999 Diplomat $1,000 to $2,499 Envoy $500 to $999 Statesman $300 to $499 Ambassador $200 to $299 Century $100 to $199 Investor $50 to $99

If you prefer to contribute by setting up a monthly bank draft or by using a credit card, please contact the associa-tion office for the form required (925-283-2520).

Checks (personal) should be payable to IFAPAC and mailed to: IFAPAC

Contributions to IFAPAC are voluntary and are not deductible for federal income tax purposes. Corporate contribu-tions are prohibited.

As of January 1, 2011, the Professional Liability Insurance Program endorsed by NAIFA is made available exclusively to NAIFA Members by CalSurance Associates, a division of Brown & Brown of California, Inc. CalSurance welcomes new and returning NAIFA E&O program participants.

NEW COVERAGE EXTENSIONS!

• Reimbursement of Expenses Coverage Extension • Disciplinary Proceedings Coverage Extension • Spousal Coverage • Subpoena Compliance Coverage Extension • Privacy Breach Coverage • Pre-Claims Assistance Coverage Extension • Public Relations Extension

Look for the NAIFA logo. If your renewal doesn’t include the NAIFA logo, it is not the NAIFA-endorsed program.

Visit www.naifaeo.com for more information, and/or contact the NAIFA team at CalSurance Associates (888) 833-2304 for additional details.

Membership & Transfer Application — please type or print legibly

Local Association: NAIFA-Alameda County Local Association Number: 05-0668

����Mr. ����Ms. ���� Mrs. Birth Date: _____/_____/_____ Send mail to: ���� Business ���� Home Name _____________________________________________________________________________________________________________ LAST FIRST MIDDLE INITIAL

Title __________________________________________________ Designation(s) ____________________________________________

Primary Company ________________________________________ Firm/Agency Name _________________________________________

Business Address _________________________________________________________________________________________________ STREET CITY ZIP Business Phone _______________________________________ Business Fax ____________________________________________ E-mail address ______________________________________________________ Applying as : ���� New Member ���� Transfer Member

If transferring, name of your former local association ____________________________________________________________________

Home Address ______________________________________________________________________________________________________ (For our legislative database only) STREET CITY ZIP Home Phone _________________________________________ Month/Year of Initial License: _____/_____ Member type: ���� Active (Agents; general agents/reps; brokers)

���� Regular Associate (Parameds; home office; trust officers, etc.) � � � � AnnualAnnualAnnualAnnual Dues: $594.00

���� Student Associate ���� Monthly Dues option: $49.50

Type of producer/agent: ����Ordinary ���� Multiline ���� Health ���� Home Service ���� Bank Agent ����Other (please specify) ________________________________________________________ Credit card payment option: ����VISA ���� MasterCard ���� American Express Account # _______________________________

Name as it appears on card: _____________________________________________________ Expiration Date _____/_____

���� Signature _______________________________________________________

To the best of my knowledge, the applicant named is entitled to and worthy of acceptance by this local association.

Active Sponsor Signature ________________________________________________________________

Date of application ____/____/____ Application approval date ____/____/____

Monthly bank draft and monthly credit card payment option forms are available. To request a form, call 925-283-2520 or e-mail myassociation@sbcglobal.net

EACH ONE RECRUIT ONE

Give this application form to a non-member associate.

Mail with dues check to 1043 Stuart St., #175, Lafayette CA 94549 or fax with credit card payment information to (925) 283-2521

For Bank/NAIFA Use Only

THE REPORT PAGE 6

.

Creating Business Value by Developing a Strategic Business

Think back to the last business week. How much time was spent on your business (strategic) versus in your busi-ness (operational)? If you are spending 51 percent or more of your time in your business, then you need to seri-ously rethink the activities you are scheduling. To create a more strategic business, you need to follow four golden rules: Rule No. 1: Increase the number of the clients you choose to have. Many businesses realize that a number of clients waste their time. You can have the most amazing client service in the world, but if you are not being paid sufficiently for what you offer, the business is not a business, it’s a charity. First, consider terminating your relationships with the 20 percent of your clients who you rarely enjoy working with. Second, examine your business’s marketing engine and the income it generates. Consider up to six streams of income, with a minimum of four. Streams to consider include: Personal introductions Advertising Websites Breakfast clubs Seminars Business briefings Specialized networking Rule No. 2: Increase your transaction value. Few financial advisors think about this aspect. How would you rate your offering to clients? Have you recently asked your clients what they think of it? Do you plan meetings that open prospects’ minds to new possibilities? Do you talk about their dreams and offer real ideas of how to get what they want? Consider creating a half-day client clinic, where you meet with a cross section of your clients to get some all-important feedback to improve your offering for the future. Rule No. 3: Increase the transaction frequency. To increase the transaction frequency, you must increase your communications with clients. If you’re not contacting your clients, other people will. Use MP3 files or video clips, in which you deliver a helpful, finance-related message. These messages can be sent via e-mail or using a service such as YouSendIt.com. I’m also in favor of newsletters, as long as they’re not called “newsletters” and the infor-mation is bright and interesting. The content should be all about how your clients can improve their financial lives and not about what you’re doing in your office. Do your best to stay in consistent, conversational contact with cli-ents. Rule No. 4: Create and improve your business systems. What score out of 10 would you give your business systems right now? I hired a great practice manager, Helen Sweet, who has designed simple business processes for all of us, and mini-processes within the main system for business to be submitted, phones to be answered and our team to be looked after. Your Number 1 product is, and should be, your business. The moment you get this, you’ll start to get more sleep at night, more income, more time off and more time for quality thinking.

Michael Bell is a 15-year MDRT member from Sheffield, England. He started his own company, Results Financial, in 1998. The company now has 20 advisors and seven administrators. Bell is also a member of the Personal Finance Society and has spoken at conventions around the world. His entire 2010 Annual Meeting presentation is available at www.mdrtpowercenter.org.

Advanced LongAdvanced LongAdvanced LongAdvanced Long----Term Care WorkshopTerm Care WorkshopTerm Care WorkshopTerm Care Workshop 2 Hour CE

**Lunch will be provided**

Date: Thursday April 14, 2011

Time: 12:00-2:00

Place: MassMutual Office

2121 N. California Blvd., Ste. 395

Walnut Creek, CA 94596

Learn the technical aspects of LTC in order to better position yourself in the business

and individual LTC marketplace.

Topics:

� LTC taxation: business and individual

� Medical expense deductions. How to demonstrate

� How to use health savings account.

� Medical Care Lift Tax Exclusion. What it is and how to use it.

� When to use Trust Owned LTC.

� What you need to know about employer provided LTC.

Please RSVP to:

Rick Alvarez

MassMutual Brokerage Director

(925) 979-2373

NAIFA – Alameda County (925) 283-2520 Web site: http://naifaalameda.org