PDF HOW CAN I PREPARE FOR THE FISCAL CLIFF? Proactive Measures ...

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NAFA Media Report

Below is your list of last week's media articles that were reported to NAFA by the Indexed Annuity Leadership Council (IALC) as part of our public awareness and attitudes campaign. We've added our own list of articles that we track through our government relations work. Let us know if you have any questions or would like NAFA to address any particular article. The Monday Media Update is available to any employee of a NAFA Premier Partner or to any NAFA Producer Member as part of our relationship with the IALC.

We will kick off today's report with a new blog posting by NAFA President & CEO Kim O'Brien at the IALC Website.

HOW CAN I PREPARE FOR THE "FISCAL CLIFF?" Proactive Measures that Can Help you Avoid Loss

December 14, 2012

A recent column in Nevada's Henderson Press outlines some useful steps Americans saving for their retirement can take to help them prepare for the so-called "Fiscal Cliff"-a combination of tax hikes and spending cuts that are scheduled take place at the end of the year if Congress doesn't reach consensus.

As the column notes, one impact of the fiscal cliff is the expiration of the Bush tax cutswhich would mean higher income tax rates. The other major part of the fiscal cliff is automatic spending cuts that, if implemented, will slash federal spending by approximately $1.5 trillion over ten years.

With huge spending cuts hitting Americans at the same time as tax hikes, the economy could contract, resulting in a recession and subsequent market volatility. Given this uncertain situation, it's important for those in or nearing retirement to evaluate their risk tolerance and adjust their financial plan accordingly.

More specifically, products that do not lose value even when the stock market goes down-like a fixed indexed annuity-are worth further exploring. To learn more about how a fixed indexed annuity may positively contribute to your long-term financial plan, check out this brief educational video.



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NAFA Media Report

Print and Online Articles

7 really stupid investments MarketWatch By Chuck Jaffe December 13, 2012

"So few people - besides the ones selling them - understand equityindexed annuities like the MasterDex 5, and products like it comes up all the time."

Annuity suitability law: Coming to your state soon LifeHealthPro By Tom Sullivan and Melissa Card December 13, 2012

"Safe Harbor refers to the provision that a review conducted under FINRA suitability and supervisory rules meets the requirements set forth within this Model Regulation. It applies to fixed annuity transactions in circumstances where the process is subject to FINRA's suitability and supervisory requirements. Insurers who rely on the FINRA-required broker-dealer suitability review for variable annuities will qualify for the Safe Harbor provision if fixed annuities are reviewed by broker-dealers under the same suitability process. However, transactions falling within the "safe harbor" may still be subject to further regulatory review by the states. Insurers are responsible for assessing their specific fixed annuity programs to determine if the Safe Harbor provision applies, and if such programs will require additional state review."

Survey: As fiscal cliff approaches, RIAs look to tax-deferred products LifeHealthPro By Warren S. Hersch December 13, 2012

"The poll reveals that 75 percent of registered investment advisors and fee-based advisors say their clients are anxious about the impact of the looming fiscal cliff-and their biggest concern is rising taxes. Additionally, 85 percent of these advisors view tax-deferred solutions, such as variable and fixed annuities, as vehicles with which to avoid the impact of a tax hike near-term."

LIMRA: Less Than Half Expect To Live Desired Retirement Lifestyle Insurance News Net December 12, 2012

"When asked to identify which services offered by advisors are most valuable, pre-retirees' responses mirrored those of advisors surveyed



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by LIMRA earlier this year. Both advisors and pre-retirees agree that creating an income plan and minimizing the risk of running out of money are critically important.

These results also align with findings from LIMRA's study of recent deferred annuity buyers. According to the 2012 study, the majority of recent deferred annuity buyers said the two most important reasons they bought an annuity were to facilitate retirement planning and to ensure their assets lasted throughout their and their spouses' retirements."

Annuity pitches to avoid MarketWatch By Stan Haithcock December 11, 2012

"Equity Indexed Annuities are the hottest product going on the lunch seminar circuit. These products were actually developed to compete with CD returns, not as pure market growth products. First of all, there are always fees. That's the first red flag. The upfront bonus is real, but in most cases it is vested, which means you have to stay to full 10 years for it to be yours.

As for the 18% pitch, that is so ridiculous it's scary. Remember the following statement whenever you hear about indexed annuities. The upside with an equity indexed annuity is that there is no downside. The downside is that there is limited upside."

: sales of indexed annuities rise in third quarter LifeHealthPro By Warren S. Hersch December 11, 2012

"The report discloses that third quarter sales of fixed indexed annuities totaled $8.7 billion, up 0.04 percent from the previous quarter. As compared to the same period last year, sales were up 0.24 percent.

'This quarter's sales were only half of one percent lower than third quarter 2010's record-setting indexed annuity sales levels,' says Sheryl Moore, President and CEO of Moore Market Intelligence, the firm that owns ."

Similar coverage can be found in Retirement Income Journal, Insurance News Net, andLifeHealthPro.

The Risky Mortgage Business: The Problem with the 30-Year Fixed-Rate Mortgage The American By Arnold King



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December 11, 2012

NAFA Media Report

"Financial institutions are safest when the characteristics of their assets match the characteristics of their obligations. For example, if a company is in the business of selling 10-year fixed annuities, then backing those annuities with 10-year fixed-rate assets makes sense."

Dealing with fraudulent annuity schemes The Daily Reflector By Jack E. Karns December 9, 2012

"The program was called a deferred annuity and 328 individuals decided to purchase the fraudulent product. To say that there were problems with the manner in which the program operated would be an understatement and stands as proof that senior citizens, and their children and friends, must pay close attention to how their loved ones are being ripped off."

Tax strategies to consider before the end of the year Inside Tuscon Business By Susan L. Moore Vault December 7, 2012

"If you are 59? and still working, you may be eligible to rollover or transfer your 401(k) to a fixed annuity. The advantage to doing so would be to remove your retirement funds from the risk of market volatility and create a safe environment with your funds."

Blog Coverage

: sales of indexed annuities rise in third quarter All About Annuities December 12, 2012

"Sales of fixed indexed annuities edged up in the third quarter, according to a new report."

401k Fixed Indexed Annuity Offers Multiple Benefits Annuity FYI By Rachel Summit December 10, 2012

"A fixed indexed annuity is one of the best ways to transfer your 401k savings into an investment that will offer you lifetime guaranteed income. Barriers that were previously there making it difficult for insurance companies to offer indexed annuities as easily as other



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investments in 401k plans have recently been removed. Now there are new fixed indexed annuities developed by insurers specifically for lowering risk as retirement approaches and you are ready for income pay outs."

Is Investing in Annuities a Viable Option? Arbitrage Magazine Blog By Max Oser December 10, 2012

"Investing in annuities is a smart choice. However, it seems that some people are having a hard time trying to convince themselves about whether to invest in annuity programs. You may have heard a few grumbles here and there about, for example, how terrible the equity index annuities are. It's rather easy to be influenced with such a claim, isn't it? However, if you take a closer you'll know that these investment programs are only meant for the betterment of the society."

(Q32012) Annuity Interview w/ Sheryl J Moore Sheryl J. Moore, The Indexed Expert By Matt Neuman December 7, 2012

"I am absolutely thrilled about indexed annuity sales in 2012. Our third quarter, 2012 sales were greater than all other quarters in history, with the exception of third quarter, 2010. We are going to blow all records out of the water, come the end of this year. I am projecting that not only will fourth quarter close-out a record year, but that it should be a record-setting quarter as well. Not too bad considering this has been THE most challenging time to sell fixed and indexed annuities!"

This post can also be found on The Annuity Consultants

NAFA 2300 E. KENSINGTON BLVD. MILWAUKEE, Wisconsin 53211



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