Stock Update (NYSE:MET): MetLife Declares Second Quarter 2014 Preferred ...

[Business Wire] - MetLife, Inc. announced today that it has declared second quarter 2014 dividends of $0.2555555 per share on the company's floating rate non-cumulative preferred stock, Series A , and $0.4062500 per share on the company's 6.50% non-cumulative preferred stock, Series B .Read more on this.

MetLife, Inc. (MET), with a current value of $55.75B, started the session at $50.65. Looking at the equity, the company's one day range is $49.06 to $50.68 with a one year range of $41.43 to $54.80. MetLife (MET) shares are currently priced at 9.21x this year's forecasted earnings, which makes them relatively inexpensive compared to the industry's 16.71x earnings multiple for the same period. The company pays shareholders $1.40 per share in dividend income per year, for a current yield of 2.70%. Consensus earnings for the current quarter by the 20 sell-side analysts covering the stock is an estimate of $1.42 per share, which would be $0.02 worse than the year-ago quarter and a $0.00 sequential decrease. The full-year EPS estimate is $5.65 which would be a $0.02 better than last year's full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $17.62 Billion. If reported, that would be a 3.40% increase over the year-ago quarter. Recently, UBS downgraded MET from Buy to Neutral (Jan 6, 2014). Previously, Deutsche Bank Initiated MET at to Hold. The average price target for MET shares by the analysts covering the stock is $60.24, which is 18.93% above where the stock opened this morning. Summary (NYSE:MET) : MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, Asia, Europe, and the Middle East. It operates in six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; Latin America; Asia; and Europe, the Middle East and Africa. The company provides variable, universal, term, and whole life products; individual disability income products; personal lines property and casualty insurance, including private passenger automobile, homeowners, and personal excess liability insurance; and variable and fixed annuities for asset accumulation and distribution needs, as well as mutual funds and other securities products. It also offers group insurance products, such as variable, universal, and term life products; dental, group short- and long-term disability, and accidental death and dismemberment coverages; and voluntary and worksite products consisting of personal lines property and casualty insurance, as well as LTC, prepaid legal plans, and critical illness products. In addition, the company provides annuity and investment products comprising guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets; and structured settlements and products to fund postretirement benefits and company-, bank- or trust-owned life insurance, as well as health insurance, group medical, credit insurance, endowment, retirement, and savings products. It serves individuals and corporations, as well as other institutions and their employees. The company sells its products through sales forces, third-party organizations, independent agents, and property and casualty specialists, as well as through career agency, bancassurance, direct marketing, brokerage, and e-commerce channels. MetLife, Inc. was founded in 1863 and is based in New York, New York. Tag Helper ~ Stock Code: MET | Common Company name: MetLife | Full Company name: MetLife Inc (NYSE:MET) .

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George Osborne's pension reforms hit Aviva annuity sales

Aviva. Pic: PA.

Ben Woods, Business writer Thursday, May 15, 2014 1:08 PM

Aviva has branded its performance as 'calm and stable' despite a slump in annuity sales and a marked decline in its UK life insurance business.

A double hit from the government's announced pension shake-up, and a decision by the group to sell fewer high-margin products, has caused annuity sales to fall 21pc during the first quarter, while the value of new business (VNB) for annuities was 43pc lower at £40m.

But group chief executive Mark Wilson hopes that targeting the market for mid-sized bulk purchase annuities will help soften the impact of the reforms set out in the chancellor's budget that allow retirees to access their pension pots without buying an annuity.

It came as strengthening demand overseas offset a sluggish UK performance, with total VNB up 13pc to £228m, as the UK slumped 22pc to £89m while Asia surged ahead at 96pc and Europe continued to rise at 45pc.

Mr Wilson said a 'polar vortex' in Canada had dealt a £40m blow to the general insurance business which also paid out £60m in the UK, as the storms and floods took their toll during January and February.

'Aviva's overall performance in the first quarter was reassuringly calm and stable in marked contrast to the weather and regulatory developments,' he said.

'Aviva still faces challenges both in the external environment and in the business as we progress our turnaround,' he added. 'The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines.

'As a business we remain focused on cash flow, expense efficiency and the clinical allocation of capital to areas where we can maximise returns. There is still much to do.'

Reporting its first quarter results, Aviva revealed an operating capital generation of £0.4bn as it continues to push forward with its expenses reduction programme.

Since March, the insurer has weilded the axe on a number of its overseas ventures - disposing of its Turkish general insurance business, the US asset management boutique River Road, and a South Korean joint venture, while also carrying out a significant restructure of its Italian business.

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BUZ LIVINGSTON: Too much home, too much danger

Rank from one to three the following: Making the mortgage payment, having fun, saving for retirement. No changes, huh? It's no character flaw merely human nature. Until agriculture was invented five or six thousand years ago, long term planning meant finding something to eat day after tomorrow. The problem is we delude ourselves into believing mortgage payments and saving are economically equivalent. Why not? We kill two birds with one stone and can have fun.

An unfortunate corollary is ending up with more home than necessary. Don't forget a house is a consuming asset. Just keeping the sucker running costs between three and five percent annually. Take the time, do the math. These operating expenses include taxes, insurance, maintenance and utilities but not mortgage payments. The deck is stacked against you, too. The guidelines mortgage companies and banks use practically ensure you will buy too much house. The mortgage industry wants to loan you the maximum amount you can painfully repay. Understand the game.

For decades a surefire way to financial security was to have your home appreciate in value, sell it when you retire and move to a new place. That strategy went out with dial-up internet. Still, many retirees find themselves house poor with more assets in home equity than retirement savings. A recent study found only the top 20 percent of households had more retirement savings (401K, IRAs, taxable savings or annuities) than the value of their home. For singles it was more dramatic with only 10 percent of single households having financial assets greater than the value of their home.

Your goal should be a debt-free home in retirement and more retirement savings than home equity. If you are retired or approaching retirement and have more home equity than savings, owning less house is essential. I don't worry so much about younger people. Most of them have figured out, either vicariously or the hard way, the 'my-house-will-make-me-rich' fallacy. Buy a smaller house than the mortgage guidelines allow or even rent. Then live within your means.

When doing retirement projections seldom do I consider home equity as a retirement asset like an IRA or a 401K. I include home equity on the balance sheet but you have to live somewhere and it's not like you can sell the garage if you need $20,000. Home equity should be a retirement fallback position or rally point.

What about reverse mortgages? Washed-up entertainers peddling reverse mortgages registers positive on my BS detector. But Suze Orman doesn't like reverse mortgages so color me conflicted. Deciding to use a reverse mortgage is extremely complex. Plus reverse mortgages are very expensive. The amount you can 'borrow' is based on the value of your home and expected longevity. When the younger spouse is over 70 and you have no desire to keep the home in the family, mull over a reverse mortgage. Understand that the loan will have to be repaid if you move, say to assisted living, or at the last spouse's death. Be careful when an asset manager recommends a reverse mortgage. A reverse mortgage means more billable assets for them since you won't be spending down investments.

Even though Buz Livingston is a fee-only Certified Financial Planner this should not be considered personal advice. For specific advice visit us online at http://ift.tt/T91Uzz or at our new office in Redfish Village , 2050 Scenic 30A, M-1 Unit 230.



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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

- Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company^® (Jackson ^®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access ^® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle ¹.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout. About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Please visit scoutinv.com for more information on our firm and our products. SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off. NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE About Jackson Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan), Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York) and Jackson National Life Distributors LLC. *Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company. Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money. Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions. Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. www.jackson.comDiversification does not assure a profit or protect against loss in a declining market. The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability. International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value. The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract. The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees. Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information. Disclosures: This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level. Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets. Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale. A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations. . Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts. The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance. As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities. Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility. When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.



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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

KANSAS CITY, Mo., May 15, 2014 (BUSINESS WIRE) -- Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company ® (Jackson®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle1.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout.

1 Diversification does not assure a profit or protect against loss in a declining market. Portfolios that have a greater percentage of alternatives may have greater risks, especially those including arbitrage, currency, leveraging and commodities. This additional risk can offset the benefit of diversification. Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'nonnatural person' such as a corporation or certain types of trusts.

About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation . Please visit scoutinv.com for more information on our firm and our products.

SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off.

NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE

About Jackson

Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com .

Jackson is the marketing name for Jackson National Life Insurance Company (home office:Lansing)(home office:Michigan), Jackson National Life Insurance Company of New York® (home office:Purchase)(home office:New York) and Jackson National Life Distributors LLC.

*Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions.

Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products.It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts.

Diversification does not assure a profit or protect against loss in a declining market.

The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability.

International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value.

The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract.

The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees.

Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (home office:Lansing)(home office:Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (home office:Purchase)(home office:New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.

Disclosures:

This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level.

Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets.

Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale.

A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities.Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices.Illiquid securities may also be difficult to value.

The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance.

As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility.When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.

SOURCE: Scout Investments, Inc.

For Scout Investments, Inc. Kristin Kovach, 816.423.6131kkovach@barkleyus.com

Copyright Business Wire 2014

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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company^® (Jackson ^®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access ^® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle ¹.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout.

About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Please visit scoutinv.comfor more information on our firm and our products.

SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off.

NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE

About Jackson

Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.

Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan), Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York) and Jackson National Life Distributors LLC.

*Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions.

Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts.

Diversification does not assure a profit or protect against loss in a declining market.

The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability.

International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value.

The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract.

The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees.

Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.

Disclosures:

This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level.

Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets.

Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale.

A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities. Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value.

The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance.

As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility. When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.

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Is the Starbucks Verismo a Failure?

When NASDAQ: Starbucks ( SBUX ) launched its Verismo home brewing system in 2012 around the holiday season, it did so with a huge in-store kickoff that included displays, demonstrations, and free samples. Those efforts were periodically toned down and ramped up throughout 2013 with another big push coming in the run-up to Christmas, when not only was the machine given a lot of floor space in many locations, its base model was sold for $99 -- less than half the $199 it cost at launch. (The base model System 580 is now selling for $119 on Starbucks.com while the more compact System 583 goes for $149, and the top-of-the-line 60 sells for $199).

Now with Mother's Day just passed and Father's Day ahead, the Starbucks I frequent most often has no sign of the Verismo machines and a very limited selection of pods. Three other Starbucks in my area have the machine in stock, but only a sliver of shelf space is being devoted to the home-brewing system, far less than what's dedicated to the company's Via instant coffee line and its offering of K-Cups for NASDAQ: Keurig Green Mountain's ( GMCR ) sort-of-rival home brewer.

This is certainly anecdotal evidence at best, but Starbucks appears less committed to carving out a piece of the home brewing market for its own machine and more interested in selling products for Keurig's machines and its own line of instant coffee. A leading expert in the field agrees that the Verismo has fallen as a priority for the chain.

'We don't believe it's selling well, and there has been a steady decline in the system,' Jay Brewer of SingleServeCoffee.com, a leading blog covering the single-serve coffee market, told the Fool. 'There's more interest in Via and their K-Cups. We have also never seen any advocates for the Verismo in our forums or in the comments of any of the articles.' What is a Verismo?

Starbucks describes the Verismo as using 'Swiss-engineered high-pressure technology' along with exclusive milk and coffee pods 'to create Starbucks-quality drinks at your fingertips.'

In less flowery terms, Verismo can make regular coffee drinks along with lattes. This is somewhat novel in the United States -- Keurig's K-Cup machine doesn't make lattes while NASDAQOTH: Nestle's ( NSRGY ) Nespresso line until recently only made espresso drinks. The Starbucks machine offers coffee pods, which make a traditional cup of coffee, and espresso pods, which make an espresso shot. Pair an espresso pod with a milk pod and you have a product that approximates the drinks sold in Starbucks stores (you can even buy the flavor syrup and chocolate/caramel drizzle used in-store).

From launch, Starbucks faced a challenge with Verismo -- it has to offer drinks that are price-competitive to other home brewers without massively undercutting the price offered in Starbucks stores, or else customers might stay home and rob the chain of other sales opportunities that come from having customers visit its locations. Starbucks coffee pods cost around $1 each. One pod makes a roughly six-ounce cup of coffee -- about half the size of a 'tall' at Starbucks, which costs around $2 (though prices vary from market to market). That's a little higher on average than the company's K-Cup packs, which it sells online for $19.95 for 24.

Starbucks roughly maintains the half-the-size, half-the-ratio model for its lattes, which require an espresso and a milk pod. The company sells a pack of eight espresso and eight milk pods for $12.95. One of each pod is used in making a latte that comes in around six ounces (maybe a little less) costing a little over $1.60 -- a little less than half the cost of a tall latte in most Starbucks (the price goes up a little at home when you factor in buying syrups and drizzles). What is Starbucks' plan?

Starbucks did not respond to my request for information on Verismo sales and the company did not mention the home brewing system in its annual report. In fact the company has said precious little about Verismo, though CEO Howard Schultz was clearly excited by its prospects when it launched. He spoke about the brewer in an earnings call in January 2013 when the company claimed it had sold 150,000 brewers in its first quarter of 2013.

'We remain committed to attaining leadership in the single-serve category, and I can tell you today that with Verismo we are in the nascent stage of building a multi-billion-dollar platform for Starbucks over the long term,' said Schultz. 'And we are in it for the long term.'

The company may be committed for the long term in the sense that it's not going to stop selling Verismo, but it's hard to see Starbucks making a dent in Keurig's near-total market share. Keurig had $4.3 billion in total sales in 2013 with $3.1 billion of that coming from portion pack sales and $827.6 million coming from Keurig Single Cup Brewer and accessories net sales. Almost all of that revenue came from the United States and Canada. Starbucks could, however, pass Nespresso for second place in the U.S. as Nestle's brewer line had only $300 million in sales in the U.S. in what the company estimates is a nearly $5 billion market for coffee pods/capsules. Starbucks can take a long view

Verismomay not succeed in the sense that it takes significant market share away from Keurig, but that doesn't mean Starbucks' single-cup/home brew strategy has failed. Starbucks has a devoted fan base and it has hedged its bet with that crowd by offering a multitude of home-based solutions for those wanting a single cup. It probably rankles Starbucks execs to have to cut Keurig in on the action when it sells a Starbucks-branded K-Cup, but that partnership makes Starbucks coffee available to the widest possible audience.

If Starbucks stopped offering K-Cups it might sell a few more Verismo units, but it would be doing so at the expense of locking itself out of a huge established user base for Keurig machines. That move might have a ripple effect where dedicated Starbucks fans try other brands -- perhaps NASDAQ: Dunkin' Donuts ( DNKN ) K-Cups -- so Starbucks was smart to partner with its rival while also building competitive offerings.

By not having all its eggs in one basket Starbucks has the luxury of being able to take a slow growth approach with Verismo. Even if the company only manages to get into a fraction of the homes Keurig has, every actively used Verismo becomes a bit of an annuity for the company, which can rack up pod and accessory sales.

With Verismo plus the Starbucks K-Cup offering along with the company's Via line (which just needs hot water), the company might not have achieved the single-serve at-home dominance it hoped for but it has a strategy that covers a lot of bases. That may not be enough to crack Keurig's hold on the at-home single-serve market but it should help Starbucks maximize revenue from its own loyal customers. Are you ready to profit from this $14.4 trillion revolution?

Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap 'pure-play' and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

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Five arrests in suspected boiler room fraud

City of London Police has warned boiler room scams are on the rise after a raid on a suspected boiler room operation led to five arrests.

It says the suspects are believed to have been targeting vulnerable consumers from a number of London offices, and are thought to have been selling overvalued commodities products.

The five men were arrested on suspicion of conspiracy to commit fraud by false representation and money laundering. They have been held for questioning.

Action Fraud, a consumer hotline run by the City of London Police and the National Fraud Intelligence Bureau, says it has evidence suggesting investors have lost tens of thousands from the suspected scam.

City of London Police detective chief inspector Dave Manley says: 'In recent months we are finding evidence of boiler rooms creeping back into the City. This could be partly a result of the success we have had in shutting down these types of operations overseas, and partly down to the fact that having a fancy office in the Square Mile makes it easier for the gangs to recruit.

'Whatever the reason, the City of London Police will not tolerate their existence and is committed to acting quickly to limit the harm they can cause to investors, especially the elderly and vulnerable, living across the UK.'

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George Osborne's pension reforms hit Aviva annuity sales

Aviva. Pic: PA.

Ben Woods, Business writer Thursday, May 15, 2014 1:08 PM

Aviva has branded its performance as 'calm and stable' despite a slump in annuity sales and marked decline in its UK life insurance business.

The insurer's value of new business (VNB) for annuities was 43pc lower at £40m during the first quarter, as the EDP Top100 company took a double hit from the government's announced shake-up of the pension system and a decision by the group to sell fewer high-margin products.

But group chief executive, Mark Wilson, was confident that targeting the bulk annuities market would offset the impact of the chancellor's budget announcement that retirees would no longer have to buy an annuity with their pension fund.

It came as strengthening demand overseas offset a sluggish UK performance, with total VNB up 13pc to £228m, as the UK slumped 22pc to £89m, while Asia surged ahead at 96pc and Europe continue to rise at 45pc.

Mr Wilson said a 'polar vortex' in Canada had dealt a £40m blow to the general insurance business which also paid out £60m in the UK as storms and floods took their toll during January and February.

'Aviva's overall performance in the first quarter was reassuringly calm and stable in marked contrast to the weather and regulatory developments,' he said.

'Aviva still faces challenges both in the external environment and in the business as we progress our turnaround,' he added. 'The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines.

'As a business we remain focused on cash flow, expense efficiency and the clinical allocation of capital to areas where we can maximise returns. There is still much to do.'

Reporting its first quarter results, Aviva revealed an operating capital generation of £0.4bn as it continues to push forward with its expenses reduction programme.

Since March, the insurer has weilded the axe on a number of its overseas ventures - disposing of its Turkish general insurance business, the US asset management boutique River Road, and a South Korean joint venture, while also carrying out a significant restructure of its Italian business.

* Do you have a Top100 story for the Eastern Daily Press? Contact business writer Ben Woods on ben.woods@archant.co.uk or call 01603 772426

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Why Sales Reps Fail More Than 85% of the Time

There are two types of people who don't like cold calls: the one making the calls and those on the other end of the line. Let's face it; whether it's from a great referral or from a cold list, making cold prospecting calls is the worst step in the sales process. Creating a relationship out of thin air is hard, but it's nearly impossible over the phone. This is why the average rep fails almost 9 out of 10 times.

It's why most veterans hate to refill their pipeline and also why the burnout rate is so high for those just starting out. Many accept the fact that prospecting is something you have to push through, a time for paying your dues, like rainy days on vacation - it's an unavoidable part of life.from a great referral or from a cold list, making cold prospecting calls is the worst step in the sales process. Creating a relationship out of thin air is hard, but it's nearly impossible over the phone. This is why the average rep fails almost 9 out of 10 times.

Actually, there is a better way. But it's counter intuitive to nearly everything you've learned about selling and influence. And it's not about making more calls or beefing up your value proposition. It's about bolstering receptivity - NOT selling. Therefore, if you deploy the same tactics - communicate benefits, be passionate about your solution, proactively pursue the opportunity and overcome objections - you will be part of the 85% club. In fact, most everything you have learned in sales will work against you when making an uninvited call. This is why - no one taught you the Principle of Receptivity. The Principle of Receptivity

Every time we attempt to engage a decision-maker, the person is in one of two emotional states: emotionally closed (i.e., unreceptive) or emotionally open (i.e., receptive). Guess what percentage of decision-makers is emotionally closed/unreceptive? You got it! Eighty-five percent of them are emotionally closed, which therein lays the flaw in most sales strategies.

If we try to persuade someone who is emotionally closed/unreceptive with logical arguments, they will become even more unreceptive. Let that sink in...the more we try to sell or persuade the unreceptive prospects to engage, regardless of the power of our argument, the more unreceptive they become. In other words, only a small percentage of prospects start out receptive, and using typical sales tactics on unreceptive prospects actually reduces our chances of success.

To succeed where most fail and take the pain out of prospecting, the key is to change our objective from 'selling the meeting' to creating receptivity. The first step is debunking the top three misconceptions about cold-calling. As you read through the list, keep in mind that these can apply to a phone call, a face-to-face meeting, or an email. Regardless of the channel we use to initiate the relationship, the truth of the principle applies. Lie #1 - Keep Them on the Phone

Like the car salesman who knows that if you leave the lot you will never buy a car, once we FINALLY get a live person on the phone we're not letting them go. As soon as we see the door open a crack, we wedge our foot in and do everything we can to make sure they stay on the call. Then the more we try to MAKE them stay on the line, the more they want to leave. It's human nature. If we don't feel the freedom to choose, we will always resist - even if it's in our best interest to comply. This is why a significant majority are so unreceptive. They feel the pressure, the impending confrontation, and they bolt, making up any reason to get off the phone. Here's the truth: you should let them go.

I know that sounds like crazy talk, but it works. I call it Drop-the-Rope ^®, as in don't play tug-of-war but Drop-the-Rope ^®. Find a way at the beginning of the call to release the pressure. Tell the prospect that you're not sure your service is a fit or that you're unsure of their needs. Focus on the tone of your voice. Is it non-threatening but confident - like a surfer who went to Harvard? Or does it sound desperate, pushy, or overly aggressive?

Don't 'throw the rope' by asking this question at the beginning of the call, 'Is this a good time to talk?' At this stage, they will most likely say 'no.' The best approach is to be passionate and confident about what you offer, how it's helped other clients, and the desire to explore a potential relationship. But Drop-the-Rope ^® by never assuming or stating what THEY should do. If they feel the freedom to exit the conversation or determine if the solution is right for them, they are more willing to stay. If they feel trapped, forced to stay on the phone, they will create a reason to leave - regardless of the scandalously amazing thing you have to offer. Lie #2 - Communicate Benefits

People think in terms of problems rather than in terms of benefits. So when crafting your introduction, lead with what's on their whiteboard and not with what's in your brochure. In other words, connect the purpose of the call to something you know about their key objectives, initiatives, or challenges. They ALWAYS care about their whiteboard and, at this stage in the process, seldom care about your solution. Think about all the marketing emails you receive. How many are about you? How many do you read?

'But what if I don't know what they care about?' You protest. Then ask an inside 'coach' or guess. If you have to guess, think through the top three problems or challenges that similar customers face, in their language, and lead with this information. This approach is your best opportunity to create immediate interest, and it will also bolster their belief that you have the expertise to solve their problem. Lie #3 - Focus on Setting the Appointment

Most reps like to play the cat-and-mouse game - dangling some juicy morsel of obscure information ('We can save you thousands') in hopes of securing a face-to-face appointment, assuming there just isn't enough time or emotional connection to build the case over the phone. The logic makes sense. A face-to-face meeting is a much better environment to sell your services - for them and for you. The problem is the success rate is low. It's tantamount to saying to a blind date - 'I know you don't know anything about me, but I'm great. So let's meet for two hours and I promise you will like me. So do you want to go out on Tuesday or Thursday night?' It's probably not a great strategy for securing the first date. Plus, once they say no, how do you respond? You have zero information on what's important to the prospect.

Instead, try this:

Setup a mini discovery meeting over the phone. Focus your introduction on spending a few minutes over the phone to determine if (did you pick up the rope being dropped?) it makes sense to set up a face-to-face meeting. The success rate in securing a three-minute discovery meeting is far greater than that of landing an appointment that comes with emotional strings.

Once agreed upon, focus on a few high-level, open-ended questions that tee you up to position the benefits of a face-to-face meeting (e.g., business challenges) while avoiding a dead end (e.g., 'Are you interested in _?'). You will find that you're much more likely to secure a face-to-face meeting when you know a bit more about the prospect and you've had the opportunity to begin to build a foundation of trust and credibility.

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Take These: Six tax schemes Take That should have used

Tax avoidance schemes are a form of aggressive financial planning which will typically try to exploit legal loopholes and are never approved by Her Majesty's Revenue and Customs (HMRC). Use of such schemes will mark you out as a high-risk taxpayer with the HMRC and expose you to considerable scrutiny. The Government and HMRC are strongly committed to cracking down on tax evasion and avoidance.

This type of questionable tax planning needs to be clearly distinguished from several perfectly legitimate, government-backed schemes, which allow people to invest in a tax efficient way.

Many of these schemes are extremely popular, including ISAs and pensions, while others are less well known.

Bestinvest's managing director Jason Hollands takes a closer look at the options available, both for adults and for children.

* ISAs - One of the most popular tax allowances, ISA sales through funds alone reached £2.3bn for tax year 2013/14; over £1bn more than 2012/13 tax year according to figures from the Investment Management Association. With the allowance increasing to £15,000 on 1 July 2014 with New ISAs (NISAs), the popularity of the schemes looks set to continue.

While no tax relief is provided on the way in, returns on ISAs will accrue in a tax efficient environment and therefore they should be a cornerstone of a tax efficient savings strategy.

Up to 2 million more people are expected to have been drawn into the higher rate tax band by 2015/16 since the start of the Coalition, so it is vital to keep as much of your wealth as you legitimately can away from the hands of the taxman using these precious but flexible allowance.

* Pensions - Pensions have a very favourable tax treatment, offering up-front reliefs that ISAs don't have (but you are tying your money up until you are at least 55). Currently, these reliefs are de facto at your marginal income tax rate, making them particularly attractive for higher (40%) and additional (45%) tax payers.

Pension contributions are 'grossed up' by the government by 20%, so an £8,000 contribution turns into a £10,000 investment. However, those subject to the higher rates can effectively get a further rebate via their tax return as currently pension contributions reduce taxable earnings. In effect a 40% tax payer will get a further 20% benefit and a 45% taxpayer a further 25% benefit on top of the amount the government adds to their contribution. That means a higher rate taxpayer gets a £10k investment for a cost of £6k, and a 45% taxpayer a £10k investment for a cost of £5.5k - this is unrivalled for a main stream investment.

In the past, many people have been put off pensions as a result of poor fund choices, confusing charges and the lack of flexibility on retirement. Self-Invested Personal Pensions (SIPPs) have addressed this lack of choice as they enable savers to invest across a wide range of funds and have removed much of the complexity over charges, while the Chancellor heralded a pensions revolution in his recent Budget, which means no one will have to buy an annuity with their pension pot.

* VCTs - Venture Capital Trusts are specialist investments, targeted at more experienced investors. Investment in a VCT new share offer attracts a 30% income tax rebate, providing you have paid the level of tax being claimed and that you hold the VCT shares for at least five years. For someone in a position to invest the maximum annual allowance of £200k, that's up to £60k tax credit available. Of course, anyone doing this is likely to have substantial assets already in more mainstream investments. All returns from VCTs are tax free and these can provide attractive dividend income streams for higher rate taxpayers.* EIS - Companies eligible to receive Enterprise Investment Scheme (EIS) financing have the same characteristics of those which VCTs invest in; small, UK private companies but whereas VCTs are diversified funds, EIS investment is ploughed directly into these companies. Like a VCT, investment in an EIS carries a 30% income tax credit but you only need to hold the investment for three years, not five. So, the maximum potential relief is £300k on a £1m of investment each year.

While VCTs tend to generate attractive tax free dividends, EIS investments aim to generate a tax free capital gain. In the event the investment loses money, the investor can elect that the amount of the loss, minus the income tax relief received, is offset against their income tax liability.

EIS can be used as means to defer a capital gains tax liability for individuals who have made a gain on the sale of another asset. By reinvesting the amount of their gain into EIS companies, the tax liability is deferred and only recrystallizes once the EIS shares are sold.

If you have held EIS shares for at least two years and then die, they are eligible for 100% inheritance tax relief, so can be used in estate planning.

* Seed EIS - The Seed EIS scheme is relatively new and is aimed at incentivising investment into small start-ups by business angels. This is clearly aimed at sophisticated investors. Investors can receive 50% tax relief on their investment irrespective of their marginal rate. If they have made a capital gain, they can eliminate this by investing the gain into a Seed EIS and also get the 50% relief. With the top rate of CGT at 28%, for some investors this can add up to 78% tax relief. Of course, failure rates are high for start-ups, hence the huge reliefs on offer.

In addition, it is also worth flagging the tax allowances available for investors with children:

* Junior ISAs / CTFs - If you have children, you may be able to shelter a further amount for them in a Junior ISA (or child trust fund if they have one). As announced in the Budget, the Junior ISA allowance will increase to £4,000 from 1 July 2014. Junior ISAs provide a valuable means of building up a fund which can be used to support children through a future degree.

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Aviva sees volatile life business in UK

Reuters, 15/05 10:16 CET

LONDON (Reuters) - British insurer Aviva AV.L saw mixed performances from its businesses in the first quarter of the year, with strong Asian and European markets offset by a big drop in UK business after a shake-up of its products and Britain's pensions system.

The company's key measure of growth in life insurance - value of new business - showed a 22 percent decline in Britain, while new business in Asia grew 96 percent and Italy, Spain and Ireland collectively doubled, Aviva said.

In its quarterly trading statement Aviva said the drop in UK volumes was largely driven by a rejig of its annuities business - focusing on selling fewer, higher margin products - which it started a year ago. Its UK business was subsequently affected by the government's decision in March to free retirees from being obliged to buy annuities, allowing them to invest pensions savings elsewhere.

Chief Executive Mark Wilson called first quarter performance 'reassuringly calm and stable', in light of high weather-related insurance claims at the start of the year and the shake-up of Britain's pensions system that has hit annuity sales across the industry.

On a conference call with journalists Wilson said the general insurance arm had taken a hit amounting to around 40 million pounds related to a 'particularly harsh' winter in Canada.

Storms and floods in Britain during January and February also cost the firm around 60 million pounds in the first quarter, he added.

The combined ratio for the group, showing claims as a proportion of premiums which is used by insurance companies as a measure of profitability, declined to 97.7 percent in the quarter from 95.5 percent a year earlier, Aviva said.

Wilson has driven a far-reaching shake-up of Aviva since joining from Asian rival AIA in late 2012. He has cut costs, sold off non-core assets and reshaped top management.

Investors have warmed to the New Zealander after seeing the value of their Aviva shares rise more than a fifth during his first year at the helm.

Wilson said the his management team was 'not showing any complacency' on tackling costs during 2014.

Aviva shares were down around three quarters of a percent on Thursday following the results, which Shore Capital analyst Eamonn Flanagan called 'a bit of a mixed bag'.

(Reporting by Chris Vellacott. Editing by Jemima Kelly)

euronews provides breaking news articles from Reuters as a service to its readers, but does not edit the articles it publishes.

Copyright 2014 Reuters.

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Getting Beyond Negativity: Shining a Light on the Facts

NAFA has declared June as National Annuity Awareness Month. NAFA believes that we need to join forces in a national, public, and very loud way to shout about the benefits of annuities and their role in financial planning and retirement. Since our mission is to promote the awareness and understanding of fixed annuities, we decided to declare June as the month to do so. NAFA will be leveraging our relationships with fellow trade associations, our membership and industry leaders to make sure that consumers across America enter July more attentive and responsive to annuity professionals. We are pleased that the board of directors of SAFE, the Society for Annuity Facts & Education (which just received official 501c3 status approval from the IRS), has approved the Society's participation as our first sponsorship partner!

The entire month will be spent educating regulators, legislators and journalists about fixed annuities and the strong consumer protections that make the annuity marketplace one of the safest environments for financial planning and retirement. This is due in no small part to the robust and effective oversight that state regulators have over annuity suitability, advertising and disclosure. With that in mind, we are devoting this column to discussing why consumers can trust the annuity marketplace. ADVERTISING & DISCLOSURE

As an educational association, we've produced a number of articles and training publications on advertising. NAFA's Guiding Principles for Advertising & Disclosure states: One of the most important elements in making consumers aware of a product is advertising. Advertising is used to sell nearly every product produced or service delivered in our society. The powerful effect that advertising can have on consumers has caused it to come under increased scrutiny to ensure that advertising does not mislead consumers. Misleading advertising can cause consumers to make decisions that are not in their best interests. Even worse is the prospect of advertising deceiving or luring consumers into making harmful decisions. As a result, accurate, honest, understandable, appropriately informative advertising is an important goal for the financial services industry, along with corresponding regulation.

NAFA is always concerned when advertisements, marketing materials or media articles are false, misleading or inappropriately positioned for consumers. Our Guiding Principles discuss the importance of truthfulness and accuracy, argue that ads or advertising materials should not be disparaging of competitors or products or suggest false urgency, and assert that all advertisements clearly identify, with appropriate disclosures and disclaimers, the product or products being recommended. These Principles were developed by NAFA's Education Committee with a close adherence and reliance on the NAIC Advertising Model.

However, not everyone adheres to these principles. It is very troubling when an advertiser, marketer or writer who makes a living from the security industry misleads the customer with false or incomplete claims or provides an unbalanced portrayal of the advantages of the securities products over annuity products. In our rigorously-regulated insurance industry, mischaracterization or marketing using fear or disparagement is not permitted by either the state regulators who enforce the laws or by the insurance carriers who must comply with the laws. Not only would they not be allowed, those engaging in these tactics would be held accountable.

Making false claims about a competing product is clearly an intent to generate confusion and fear. This is not helpful to promote consumer confidence, nor is it conducive to an efficient and safe market environment that allows consumers to make sound and considered decisions about their financial future. NAFA believes that the disparagement or misleading portrayal of any financial product erodes the public trust and public trust is necessary to ensure consumers make good decisions.

The Gallup Organization reports in their 2013 Study that ninety-three percent of those who own annuities still own the first annuity they purchased, and between 85% and 90% believe that annuities are an effective way to save for retirement and that they like how annuities protect against losing money. Facts that many negative portrayers of annuities conveniently ignore or may suggest that annuity owners are not satisfied or happy with their annuity.

We've devoted much space in this magazine and elsewhere to our position on suitability versus the fiduciary standard and why NAFA believes the Suitability Standard is the GOLD STANDARD in consumer protection. For those interested, please get more information at www.nafa.com or at http://ift.tt/1lsQuNi. For now, let's reveal another facet of that Gold Standard - Detection, Accountability and Recovery. Whether the standard is Suitability or Fiduciary, there is little real consumer protection when the standard is not met unless it is DETECTED in time to hold the legally responsible party ACCOUNTABLE, and that party is not only liable but has the means to make the consumer whole and RECOVER their money.

Just by the very nature of the state insurance regulatory model, with fifty different state insurance departments with their myriad regulators overseeing multi-state insurers and marketing organizations, detection has a better chance to begin with. However, coupled with the annuity Suitability Standard, detection is put on steroids because insurance carriers are held responsible to have a system of review over each and every sale BEFORE the policy is issued and the premium is paid. In fact, this is a secondary review because the NAIC Suitability Model Regulation requires the insurance professional recommending the annuity to conduct a suitability review before submitting the application.

With the annuity Suitability Standard, the law is very clear that the company issuing the annuity is held accountable by the state regulator and is liable for the premium and for making the consumer whole if it is determined that an annuity sale is unsuitable. Because the premium for a fixed annuity is held in the general account of the insurance company, the consumer is protected from losing money in the annuity to investment losses, and the premium must be returned to the consumer when the company is directed to so do. IN CLOSING

NAFA is not concerned with healthy and fair competition or the recommendation of other financial products over annuities or in addition to annuities. We apply these same principles to insurance advertisements disparaging securities or other financial products and to unsuitable annuity sales. Neither NAFA nor its members believe that fixed annuities are for everybody or should be viewed as an individual's sole retirement savings or wealth accumulation solution. NAFA believes that there is a role for every financial product and financial strategy available today and that the more choices consumers have the better off they are to compile the best set of products to meet their financial objectives. NAFA supports a regulatory structure that is robust, fair and even-handed, regardless of the financial product recommended or sold. Otherwise, consumers will not have a safe and comprehensive sales environment to make sound financial decisions.

Annuity professionals are held to very strict laws and regulations surrounding advertising, disclosure and suitability, and we support strict adherence and enforcement by state insurance regulators. We only wish that securities-only advisors were held to the same consumer protections and standards of truth and fairness in advertising to which we hold insurance-licensed professionals and companies.

Here's a quick checklist to help your clients separate unbiased and factual information about fixed annuities from biased and self-interested information disparaging them. (And, as they say, to be 'fair and balanced,' this same checklist can also be used where there is unbalanced information about fixed annuities or only disparaging information about other financial products.)

1. Is the advertiser or writer open about their own interests and business gain? Advertising by its very nature is self-serving and intended to sell you something, but:

a. If the ad is disguised as merely informational or instructional - BEWARE!

2. What annuity background, licenses, and education does the writer or advertiser have?

a. If they don't hold an insurance license or have spent most of their careers selling or promoting non-annuity products (e.g., a syndicated 'financial' columnist who spent his career as a writer for the garden and home section) - BEWARE!

3. What sources and studies does the writer or advertiser use to support their claims and are they credible, academic and respected?

a. If they don't source a claim (e.g., 'most people who own a fixed annuity...') or they cite outdated information or a source that is not academically recognized as unbiased and credible - BEWARE! Here's Why We Love Annuities Insured Savings

Safety: Fixed annuities have no investment risk. They guarantee that the money in your annuity is safe from the financial market's ups and downs.

Certainty: Fixed annuities provide a variety of ways to receive income for life - and your income check is guaranteed no matter how long you live.

Protection: Fixed annuities protect both your premium and interest as your annuity grows AND the lifetime payments from your annuity throughout retirement.

Tax Deferral: Fixed annuities are tax deferred and the power of tax deferral helps to increase interest earnings.

Minimum Premiums: Fixed annuities allow you to save regularly with modest premium amounts. Consumer Safeguards

State laws and regulations require insurance companies to review the sale of fixed annuities before a contract is issued in order to determine the suitability of the recommendation based on an individual's financial situation and retirement goals. Fixed annuity contracts must have a 'free look' period so that you can be certain you want to proceed with the purchase. Fixed annuity salespeople must be specifically trained about the actual product before making a recommendation. Industry Strength

Life insurers provide the products that protect against life's uncertainties, helping individuals and families manage the financial risks of premature death, disability, long-term care, and outliving their savings.

Life insurers have paid out billions in insurance benefits, including $97 billion in annuity payments - offering peace of mind to Americans when they need it most.

Life insurers are the single largest source of bond financing for American business, holding 17% of all U.S. corporate bonds.

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Aviva Value Of New Business Rises Despite UK Pensions Shake

LONDON (Alliance News) - Aviva PLC Thursday reported an increase in its main measure of sales profitability, as growing European and Asian operations offset a 22% decline in the UK, where the government has initiated a shake-up of the pensions industry.

Aviva said value of new business increased to GBP224.0 million in the three months ended March 31, compared with GBP209.0 million in the corresponding quarter a year earlier. In the UK, where Aviva is a big player in the life insurance industry, value of new business fell to GBP89.0 million from GBP114.0 million.

That drop was more than offset by performance in France, Poland, Italy and Spain.

Aviva said the decline in the UK was largely due to value of new annuity business falling by 43% to GBP40.0 million. Providers of annuities - products delivering a guaranteed income in retirement - faced have endured considerably lower sales since Chancellor of the Exchequer George Osborne's 2014 budget statement, in which he promised to give individuals more control over how they manage their pension funds, removing the effective requirement to buy annuities.

Aviva said it expects to increase its focus on bulk purchase annuity transactions to partially offset the decline in individual annuity sales resulting from the government proposals.

In its general insurance business, Aviva reported a deterioration in its combined operating ratio - a measure of underwriting profitability - which rose to 97.7%, from 95.5%. While still under the breakeven point of 100%, the higher ratio was a result of a harsh winter in North America, which resulted in an additional GBP40.0 million in weather-related claims.

Overall, Aviva's net written premiums in general and health insurance fell to GBP2.08 billion, from GBP2.22 billion, as the insurer faces up to softening insurance rates, particular in personal motor insurance, by being more disciplined in its underwriting.

'Aviva still faces challenges both in the external environment and in the business as we progress our turnaround. The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines. As a business we remain focused on cash flow, expense efficiency, and the clinical allocation of capital to areas where we can maximise returns. There is still much to do,' Chief Executive Mark Wilson said in a statement.

Aviva has been implementing a strategy targeting a simpler balance sheet with a series of recent deals to sell businesses that don't fit with its aims. Since its full-year results in March, Aviva has announced disposals of its Turkish general insurance business, US asset management boutique River Road, and a South Korean joint venture, as well as a restructuring of its Italian business.

Wilson, who has intensified Aviva's turnaround and presided over a cost-cutting plan, said integration and restructuring costs, which he said have historically been high, fell to GBP18.0 million from GBP54.0 million. The spend was largely related to new European regulations on insurers, known as Solvency II.

The CEO said more progress has been made on cutting expenses since the end of the recent full year, when Aviva said it had made GBP360.0 million of the GBP400.0 million 2014 cost reduction target.

Aviva shares were down 2.5% at 518.00 pence Thursday morning, making them the third biggest faller in the FTSE 100.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2014 Alliance News Limited. All Rights Reserved.

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Trends in Regulatory Oversight – Part 2

'The Battle Over IRAs' Message from the President

I have a passion for musical theater and have directed and/or choreographed over 56 productions for community theater groups. To this day, musical lyrics inspire me, teach me, and often offer up cautionary tales. And, too, many of the shows' messages remind me that life can and often does imitate art. And just as in life, it is very important to be sure you understand exactly what the message is or you will not learn and grow. There is a life lesson to be learned from a great song called 'Sit Down, You're Rockin' the Boat.' 'Sit Down' is a song written by Frank Loesser in 1950 and introduced in the Broadway musical Guys and Dolls and rollickingly sung by Stubby Kaye in the 1955 movie version.

The song's lyrics tell you that to stay on a 'heavenly trip' and not 'scuttle the ship,' you'd better know right from wrong, sit down, and not rock the boat. One of those 'wrongs' according to the song is gambling. You may be thinking that this is an article supporting or defaming gambling - it is not. It is an article about 'rocking the boat.' The song's lyrical irony is that it occurs in the story just after Sky, the lead, made the biggest gamble of his life-to secure Sarah's most important goal and also her love - and WON. So while the lyrics might seem to suggest one thing, it really has a different message: sometimes you have to rock the boat and take a gamble to win your dream.

NAFA's dream is that we will not have to continually fight battles to protect our product line from unnecessary, duplicative, or overly prescriptive regulation that negatively impacts the competitiveness, insurance guarantees, and/or the ability for consumers to buy fixed annuities. Sadly, this dream is not going to become reality in the near future. Last month on these pages, I discussed the battle over the suitability standard and the Department of Labor's soon to be re-proposed rule outlining a uniform fiduciary standard for all ERISA plans. However, DOL recently stated the new rule will force a fiduciary standard on IRA sales as well. The number of people in our industry who are not aware of the DOL's intent to impose a fiduciary standard on IRA sales is surprising, so it is essential that we spread the word to ensure that we do not allow the DOL to kidnap IRAs from the Department of Treasury. IRA rollovers make up almost 60% of all indexed annuity sales. That is at least $25 billion in indexed annuity sales in 2013. We covered in length the negative impact that imposing a fiduciary standard will have in our last issue of NAFA Annuity Outlook Magazine, but, to recap: 1. The additional Fiduciary Standard is incongruous and inappropriate in the fixed annuity sale. 2. The additional Fiduciary Standard will disrupt the fixed annuity marketplace. 3. The additional Fiduciary Standard is unnecessary to protect fixed annuity buyers.

The DOL's stated reason for drafting the rule is that consumers are 'confused' by what standard the advisor is under when working with them. While we have yet to see empirical proof that this is true or that it is widespread, for the sake of argument, let's accept it. Unfortunately, even if we agree they may be 'confused,' the DOL has not demonstrated or even asserted that the confusion mattered. Nor has the DOL proven that consumers didn't trust their financial professional to serve their best interests regardless of whether they are under the suitability or the fiduciary standard and even if they may be confused with which standard their financial professional must comply. It may matter to the DOL and other regulators who don't live in our world, but they have not proven that clearing up 'the confusion' (and we can argue whether a 'uniform' fiduciary standard will even do that) is relevant or would lead to better buying decisions by consumers.

I am confused about how the touch screen technology works on my smartphone, but understanding how it works does not matter to me; I bought the phone because I liked what it did and how it helped me. More to our point, I don't know or understand how the person working for my wireless company is paid for selling me that phone or how he or she is incentivized to 'upgrade' me. Do different wireless companies compensate differently? Probably. Do different wireless companies offer different incentives for sales? Probably. Do I care or want to know? NO! I buy a phone because I like its features, it does what they tell me it will, and it meets my goals and improves my life. I also sign a contract that promises me certain guarantees of price, upgrades, etc. If I leave the contract early, those promises are gone and there will be consequences for me.

So, in addition to reduced consumer accessibility, marketplace disruption, and decreased product competitiveness and offerings, the DOL has not demonstrated or proven how a uniform fiduciary standard applied to fixed annuities actually does 'clear up confusion' and if it does, how does it improve the sales process, and at what is the cost/benefit to the consumer.

In addition to the Department of Labor, we are closely watching the Securities and Exchange Commission (SEC). At a recent industry conference, I heard an SEC Commissioner state that three of the five commissioners were NOT interested in pursuing a uniform fiduciary standard.' But that doesn't mean we can rest. During a recent visit to the Hill, many congressional staffers told us that the SEC staff has often pushed forward a rule or an issue because they, the staff, felt it was necessary and then proceeded to convince a majority of commissioners-for example, this is what happened with 151A.

Finally, the most recent battleground for the promotion and protection of IRAs using fixed annuities is found in the current tax reform proposal authored by the Chairman of the House Ways and Means Committee, Congressman Dave Camp of Michigan. The Congressman is proposing some tax 'reforms' that will negatively impact the fixed annuity IRA marketplace. We have summarized them here. Changes to Annuity Tax Deferral

Chairman Camp's draft legislation would limit savings by undercutting the importance of tax deferral through a 50% cut in pretax contributions and a 10-year COLA freeze, along with adding a surtax for certain savers. NAFA argues that this will severely impact Americans' ability to accumulate retirement savings. We all understand the power of tax deferral and its impact on the growth potential of a fixed annuity. It is critical to our future, that we make sure members of Congress understand this concept and the proposal's negative impact, especially to modest-income Americans. Roth-Only IRAs

Another harmful tax proposal contained in the draft bill would require all IRAs be ROTH-IRAs. Forcing all retirement savers to pay taxes on their savings today will significantly reduce the amount of each savings payment, which will obviously impact the growth potential of the savings. Almost $300 (that number seems small?) million dollars are held in individual annuity IRAs ¹, and requiring that all qualified money is taxed before it is placed in an IRA will radically change the amount Americans are able to save after they leave their qualified employer-sponsor plan.

In addition, Roth IRA contributions are not tax deductible, and the current tax deduction on other IRAs is a strong incentive to save. Removing it will fundamentally change the behavior of those planning and saving for retirement. Roth IRAs can be a valuable financial planning and retirement income tool, but they don't make sense for everyone or every situation. Elimination of Stretch IRAs

The Camp tax reform draft bill proposes to eliminate Stretch IRAs. However, Stretch IRAs are utilized because of their effective planning capabilities that span generations. Eliminating them undercuts family retirement planning security and small business succession planning. The ability for individuals and families to responsibly plan for their retirement, while having the choice to extend their savings to provide financial security for their heirs and dependents, is a worthy policy goal and one that should be encouraged.

NAFA is a member of Americans to Protect Family Security, a partnership of associations representing America's life insurance companies, agents, and financial advisors dedicated to educating policymakers about the role annuities and other life company products play in the financial lives of 75 million American families. Families turn to life insurance companies and trusted agents and advisors to protect their financial futures with life insurance, annuities, long-term care insurance, and disability income insurance. The goal of Americans to Protect Family Securities (www.SecureFamily.org) is to highlight facts about life insurance and annuity company products and their importance to the financial and retirement security of American families. See more at: www.securefamily.org.

NOW is the time to STAND UP and ROCK THE BOAT! Numerous studies have shown that huge retirement savings gaps exist for millions of average Americans. We need to promote policies that encourage savings to manage longevity risk with guaranteed lifetime income, ensure protection from Wall Street's ups and downs, and provide a safe retirement for all Americans. We must get active on the Hill and our June Annuity Leadership Forum on Regulation, Legislation and Innovation will be the perfect opportunity to get in front of your federal representatives and educate them on the importance of the Suitability Standard to ensure consumer protection and retirement security and the negative impact proposed tax reform will have on fixed annuities and your clients. During June - National Annuity Awareness Month, look to NAFA for opportunities to participate and engage in our battles to ensure fixed annuities will secure today's retirees and their future.

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