Patrick J. Cannon
Immediate Past President:
Jonathan E. Beringer
Duane Borcherding, CLU, ChFC
The mission of the Columbus Chapter of the National Association of Insurance and Financial Advisors is to provide leadership in sustaining and improving the business environment for those engaged in life underwriting and to enhance further the professional skills of those providing life and health insurance and other closely related financial products and services which foster greater financial independence for the public.
9:15 a.m. - 11:15 a.m.
Cost: FREE for NAIFA-Columbus Members / $35 for Guests or Non-Members
J. Liu Restaurant, 6880 N. High Street, Worthington 43085
11:30 a.m. - 1:00 p.m.
Cost: FREE for NAIFA-Columbus Members / $25 for Guests or Non-Members
Location: J. Liu Restaurant, 6880 N. High Street, Worthington 43085
8:00 a.m. - 12:00 p.m.
Cost: $60 for NAIFA-Columbus Members / $75 for Guests or Non-Members
Location: Morton-Barber Learning Center, 6827 N High St #10, Worthington, OH 43085
7:00 a.m. - 3:00 p.m.
Early Bird Registration: $110 for NAIFA-Columbus Members / $190 for Guests or Non-Members / $995 for Table of 10
Location: Nationwide Hotel and Conference Center, 100 Green Meadows Drive South, Lewis Center, OH 43035
Presented by Shawn Combs
Tips for Staying Safe at Any Job Site
Now that spring is here, get committed to eliminating risks and incidents on your project sites. Provide your employees with risk management education to help achieve your goal of having a safe and productive workforce. Please take a moment to remind all of a few items that can be easily forgotten over the winter months. Whether you are working on small home projects or at a larger construction site, here are a few tips to keep in mind:
Most accidents can be avoided if you are prepared and have a plan. Keep safety at the forefront when working on projects.
For more information contact: Bob Cannell (614) 706-8128 or email@example.com
by NAIFA National
Jay C. Randall, Member Services Chair
The Forces and Opportunities Shaping Financial Services of the Future
According to Advisor 2020, American households are critically unprepared to secure their financial futures. Most Americans - even in middle to higher income households - will fall well short of retirement expectations. The good news is that Americans are well aware of their financial predicament and are receptive to guidance from financial advisors.
As life insurance and financial advisors, NAIFA members are uniquely positioned to tap into these markets and shape the future savings patterns and consumer demand for insurance and financial services. The Advisor 2020 Workshop will show advisors how they can redefine the value they bring to their clients in the face of these changing market and financial forces.
"The course forces you to think about the future. Normally we spend too much time working in our business, not on our business.
Aaron L. Hammer, LUTCH
NAIFA Maryland - September 29, 2016
Arizona - 4 CE Credits
Arkansas - 5 CE Credits
Colorado - 5 CE Credits
Delaware - 4 CE Credits
Iowa - 5 CE Credits
Maryland - 5 CE Credits
Minnesota - 4 CE Credits
Missouri - 5 CE Credits (4 Specific Life and Health CE)
Montana - 5 CE Credits
Nebraska - 5 CE Credits
New Mexico - 4 CE Credits
Ohio - 6 CE Credits
Pennsylvania - 4 CE Credits
Wisconsin - 5 CE Credits
Virginia - 5 CE Credits
If you'd like to see an Advisor 2020 Workshop in your area,contact your State or Local Association.
The Advisor 2020 Workshop is a six-hour program that includes both lecture and interactive participant exercises. All participants are required to read the book, Advisor 2020: The Forces and Opportunities Shaping the Financial Services Advisor of the Future prior to attending the workshop.
"Market of the Future" / Market Drivers
"Advisor of the Future" / Change Drivers
The cost of the Advisor 2020 Workshop is $195 for each participant. This cost includes the primary publication for the workshop, Advisor 2020: The Forces and Opportunities Shaping the Financial Services Advisor of the Future.
The workshop has been approved for CE credits in a number of states with more to follow soon. Workshops will be conducted at the State and Local Association level. Check this page for updates.
Location: J. Liu Restaurant
6880 N. High Street
9:15 -11:15 AM
Free for NAIFA-Columbus Members/$35 for Non/Members/Guests
Learn about the need for individual disability income insurance and how it can be leveraged in the executive benefits market using salary continuation and executive bonus programs. We will review the advantages of each along with how they work and the tax implications.
This Session will highlight executive and key employee benefit opportunities from the perspectives of the business owner and the employees. We will also give an overview of non-qualified deferred compensation and executive bonus plans.
11:30 AM - 1:00 PM
Free for NAIFA-Columbus Members/$25 for Non/Members/Guests
or register online at naifa-columbus.org.
55 Caren Avenue, Ste. 160
Worthington, Ohio 43085
Phone: 614.846.1335 www.pharmscreen.com
Karen Pedersen Email: firstname.lastname@example.org
By Renae Davies, Executive Director, NAIFA-Columbus
Office Evolution provides office space and services to micro businesses, independent contractors and sole proprietors without the cost of a full-time lease or staff. Whether you need a fully furnished office with all the amenities or just a mailbox to enhance a professional image, the company’s all-inclusive pricing offers a variety of options to fit the needs of any business, regardless of size.
Conveniently located, Office Evolution offers 70 fully furnished private office spaces, 1-12 month agreements, 6 conference and meeting rooms, free Wi-Fi, front desk reception, community kitchen, phone answering, private locking mailboxes and on-site lunch options.
Office Evolution will be providing NAIFA-Columbus Members with up to $250 worth of conference room or day office time per month at each of the following locations:
Dublin: 6500 Emerald Parkway, Suite 100, Dublin OH 43016
Contact: Liz Triano 614-495-9274 or email@example.com
Easton Town Center: 4200 Regent Street, Suite 200, Columbus OH 43219
Contact: Deborah Pentenburg 614-944-5191 or firstname.lastname@example.org
This offer will run through July 31, 2016.
If you are interested in securing one of the above conference rooms for an upcoming meeting, please follow these instructions:
1. Call the Business Center location where you would like to schedule a meeting (see above)
2. Please identify yourself as a NAIFA member booking a complimentary space
3. You will be asked to provide your name, phone number and email to confirm the booking
Please know that this benefit is offered on a first come, first serve basis and is subject to availability.
By Logan Philipps, YAT Co-Chair
As an estate planning attorney, I am always looking for the reasons that people don’t plan. By understanding those reasons, I can better tailor my marketing and my message to reach those people and challenge those objections. As a financial professional who sells life insurance products, you should be interested in why people don’t buy life insurance. In his article, "7 (Bad) Reasons People Don’t Buy Life Insurance," Aubrey Cohen, discusses seven. An excerpt of the article is below. Can you use this information to improve your message to prospects?
Life insurance is something most of us agree we need but don’t actually buy, according to research.
First, the numbers. The insurance and financial services industry research group LIMRA reported in 2013 that 30% of U.S. households had no life insurance at all, and an additional 26% had only group insurance (typically offered through employers, and often less than people need).
Meanwhile, half of U.S. households said they needed more life insurance, but only 8% said they were very likely or extremely likely to buy it the next year.
Why is that?
The full article can be viewed here.
Articles Related to The Department of Labor
By Kevin Mayeux, CAE, NAIFA CEO
NAIFA’s membership, consisting of agents and advisors from every congressional district in the country, makes us a unique and powerful advocacy force. Your membership is an investment in NAIFA’s advocacy efforts, which consistently prove to be crucial to keeping you in business and keeping our industry strong. It’s no exaggeration to say advocacy ranks among the most compelling reasons for advisors everywhere to be members of NAIFA.
Lawmakers and regulators in Washington, D.C., understand that when NAIFA speaks, we are not representing easily dismissed Wall Street interests, but rather providing the voice of the American consumer. Our members know and understand Main Street Americans and constantly look after their best interests. Our expertise and opinions matter to those making the laws and rules that impact your practices and how you serve your clients.
A powerful example of NAIFA’s influence and how it works for you is evident in the Department of Labor’s final fiduciary rule for advisors in the retirement space, which was published last week.
The DOL rule as it had been proposed was simply unworkable. It would have placed impossible requirements and restrictions on advisors, substantially increased costs, and left many retirement investors without access to personalized services and advice. Many NAIFA members told me that the rule would have likely decimated their businesses and kept average Americans from getting the advice they need to plan for their futures. Fortunately, DOL incorporated many of NAIFA’s suggestions into the final rule, altering it substantially for the better.
When the proposal came out in April last year, NAIFA’s advocacy efforts went into overdrive. In early May, NAIFA leaders, including then-President Juli McNeely and Past President Terry Headley, met with officials from the White House and Department of Labor to discuss the rule’s potential impacts. A second meeting with DOL regulators took place later in May on the same day that nearly 1,000 NAIFA members visited their senators and representatives on Capitol Hill and discussed the DOL proposal as part of NAIFA’s annual Congressional Conference.
In the year since the rule was proposed, NAIFA staff and leaders, including President Jules Gaudreau, President-Elect Paul Dougherty and myself, engaged regulators and lawmakers in at least ten official hearings, briefings, and meetings. From congressional testimony, speaking before caucuses, DOL public hearings, and private meetings with the White House’s Office of Management and Budget, officials consistently sought us out as thought leaders and listened to NAIFA as experts on how the rule would impact small businesses and Main Street investors. The media did as well. We appeared as spokespersons for the industry, advisors and American consumers for such prestigious news outlets as National Public Radio, the PBS NewsHour, the Wall Street Journal and New York Times.
NAIFA members wrote influential letters to DOL Secretary Perez and members of Congress. You made calls and attended in-district meetings. NAIFA-National and several state associations submitted formal comments on the rule.
In the end, our hard work paid off. The DOL addressed many of the most troubling aspects of the proposal, sometimes using the very language and concepts suggested by NAIFA. A handful of the positive changes include:
For more on what the rule contains and how NAIFA’s advocacy altered the final outcome, I refer you to NAIFA’s April 7 GovUpdate and NAIFA’s members-only webinar, “DOL Fiduciary Rule: What it Means for NAIFA Members and Their Practices” (archived on the NAIFA Web site). Also, look to NAIFA for additional exclusive resources, including a deep-dive session in NAIFA’s new Skill Builders series, which launches this summer and will prove to be a practical imperative for advisors everywhere.
Despite NAIFA’s influence, and the vast improvement in the regulation from its earlier draft, we realize that the DOL rule is far from perfect. While the DOL adopted many of NAIFA’s suggested changes, and while the rule is substantially better than originally proposed, it is also very complex. The rule may be final, but our work is not finished.
NAIFA experts continue to analyze the document, and will watch for any issues that may arise during its practical application. We will offer professional development resources to help NAIFA members understand and comply with the rule. And, of course, we will continue with our advocacy efforts to work on your behalf to blunt or eliminate problematic provisions. This includes using our influence with DOL to encourage the Department to issue guidance to help financial firms interpret the rule as favorably as possible for advisors and consumers, as well as our efforts with Congress and other branches of the government.
The changes NAIFA suggested (and the DOL adopted) to the final rule are steps in the right direction for us as well as the consumers we serve! Thank you for your membership, support and contributions to NAIFA’s advocacy success. Together, we make a powerful voice and can have lasting impacts on public policy.
By Mark P. Cussen, CFP®, CMFC, AFC
The Department of Labor (DOL) has put forth a proposal that would substantially impact the business models of thousands of brokers, advisors and insurance agents nationwide. This legislation has been created in an effort to update and overhaul the current set of rules that govern the financial marketplace. The crux of the matter lies in the distinction between operating under the suitability standard versus being required to act in a fiduciary capacity for clients.
Most brokers, insurance agents and financial planners who are paid commissions for the transactions that they place are held to a standard of suitability on a per-transaction basis. This standard maintains that any transaction that can be deemed to be “suitable” for a given client is permissible, provided that it is based upon the facts that the advisor is able to gather regarding the client’s financial situation, tax status, investment objectives, risk tolerance and time horizon.
The broker or planner is required to understand the risks and technical characteristics of any investment or program that he or she recommends to clients, and failure to do so results in a violation of this standard. But suitability is only applicable at the time of the transaction and not afterwards. A broker can recommend a stock to a client that may be suitable for him or her according to the definition. But if that stock tanks two months later, the broker cannot be held liable because it met the suitability requirements at the time of purchase. (For more, read Meeting Your Fiduciary Responsibility.)
Registered investment advisors (RIAs) are by contrast held to a higher standard of conduct known as a fiduciary standard. This standard was established by the Investment Advisors Act of 1940 and requires advisors to always act in the best interests of their clients irrespective of all other factors, regardless of the consequences to their compensation or any conflicts of interest that they may have. An example of how this works compared to the suitability standard is given in the following example:
Frank goes to his stockbroker for an investment recommendation. His broker finds several stocks that technically fit Frank’s investment objectives, but his investment firm will pay him a higher commission for selling one of them. The broker tells him to buy that stock as a result. Frank buys 1,000 shares and the stock rises quickly, then drops substantially below its par value several weeks later. Frank goes back to his broker to complain, and his broker reminds him that his recommendation fit Frank’s goals and risk tolerance at the time of purchase. (For more, see: How to Create a Client Investment Policy Statement.)
Frank sells his stock at a loss and takes the proceeds to a RIA. The RIA crafts an investment policy statement for Frank that will dictate how his portfolio will be managed. The RIA charges Frank a quarterly fee for his services. When Frank’s portfolio declines in value, so does his advisor’s fee. The advisor also discloses to Frank that he is also registered with a broker-dealer so that he can use variable annuity contracts if the need arises. The advisor also comes up with approximately the same list of stocks as the stockbroker, but the RIA digs deeper into the financials of these companies to see which ones really have the most growth potential.
The important difference in these two scenarios is that Frank’s RIA works for him, the client, while Frank’s broker works for an investment company.
Although the line between broker, agent, planner and fiduciary can sometimes become blurred, the legislation being proposed by the DOL will bring some fairly substantial changes to the financial marketplace. If this becomes law, it may spell the beginning of the end for the suitability standard in its present form. It will require all brokers and planners everywhere to disclose any possible conflicts of interest to their clients and also find the absolute best product for them in all situations.
The new law will classify anyone who provides any type of recommendation or advice pertaining to retirement savings, qualified plans or IRAs as a fiduciary, regardless of what licenses they do or do not hold or their method of compensation. (For more, see: 401(k) Investment Policy Statement Example.)
But this law is also careful to exempt certain types of actions from this definition. Those who provide pure education without any type of sales pitch or bias are not considered fiduciaries, and those who make sales pitches to other fiduciaries or potential plan sponsors who are financially sophisticated themselves are not bound by fiduciary standards. Brokers and traders who simply take orders from retirement plan clients without providing any type of advice or recommendations are likewise exempted from this definition.
The financial industry currently employs two separate levels of care to its customers. The suitability standard is only applicable on a per-transaction basis while fiduciaries must unconditionally put their clients’ best interests ahead of their own in all situations. The Department of Labor has responded to ongoing public dissatisfaction with many of the products and services being offered by the commission-based element of the industry by proposing legislation that will confer fiduciary status on anyone who works with individual clients in an advisory capacity. (For more, see: Fiduciary Designations for Financial Advisors.)
If this law passes, then the DOL will also have the power to monitor and enforce this rule along with the Internal Revenue Service (IRS). But while proponents maintain that this change will force many brokers to start recommending investment choices that have lower fees, some critics feel that this action will remove the incentive for planners to seek out investors with lower accounts balances because they will not generate sufficient revenue to be worth pursuing. Assuming that this legislation is passed by Congress, its ultimate effects are yet to be seen. (For more, see: What the DoL’s Fiduciary Policy Means for Advisors.)
On April 20, NAIFA-Columbus held their Membership Breakfast Meeting at J. Liu Restaurant in Worthington. During this breakfast, Mark Yerke with Retirement Funding Solutions discussed “Why a Reverse Mortgage can be a Retiree’s Saving Grace”. In addition, President David Cohen welcomed members and guests, our newest sponsor Wendy McWherter with Indiana Wesleyan University provided a brief overview of what benefits they can offer to members, Trustee Logan Philipps provided a YAT committee report and National Committeeperson Duane Borcherding gave an update on the DOL Issue. Shawn Combs with CareWorksComp also presented NAIFA-Columbus with a check from their 2015-2016 Workers Compensation Group Rating Program.