Structured Settlement Update News: 04/07/14

Tommy gun Dillinger swiped back home again in Indiana

AUBURN, Ind. -- It was an incident some people in Auburn might rather forget, but others are resurrecting it with the idea of making money.

Auburn's mayor, Norman Yoder, called it "our Barney Fife moment": Late on the night of Oct. 14, 1933, gangster John Dillinger's men barged through the unlocked front door of the police station in this northern Indiana county seat, reportedly just as one of the officers was preparing to enjoy a bag of popcorn. RELATED: Civil War weapon sells for $18,000

Soon, the police were locked up in their own jail cell, and the gangsters were driving away with the department's entire arsenal - three bullet-proof vests, six pistols, two rifles, hundreds of rounds of ammunition and the prize: a Thompson submachine gun. The Thompson, known popularly as a "Tommy gun," a "chopper," a "Chicago typewriter," is one of America's iconic weapons brandished viciously, or carried not that discreetly in a violin case, in gangster movies since the Depression.

In March, 80 years after it was stolen, that very weapon, by now a highly collectible piece of history believed to have been wielded by Dillinger personally (and valued conservatively at $150,000, which is way more than Dillinger ever got from any one bank), was back in the hands of the Auburn Police Department. A high-ranking FBI man handed it over, with ceremony, in the rotunda of the DeKalb County Courthouse, across the street from the police station, which looks a lot like it did in 1933, except now they lock the door.

The guns of famous outlaws hold a special place in collectors' hearts, and their mark-up is pronounced; Dallas-based Heritage Auctions recently sold Dillinger's Derringer for $95,000. In 2012, a snub-nosed .38 special found taped to the thigh of a deceased Bonnie Parker, of Bonnie and Clyde infamy, was sold for $264,000. In June 2013, a garden-variety revolver owned by Al Capone's older brother Ralph will go on the block, and even that is expected to fetch between $15,000 and $20,000.

It happens that the Auburn Police Department has for some time been trying to raise money privately for a new training center. The facility would have an indoor shooting range and classrooms and would cost $300,000. More than half has been raised, which means they could break ground the moment they sell the Dillinger gun. They've already had an offer of "slightly more than $100,000," said Martin McCoy, police chief. "Guy from Ohio," said Mark Stump, a police captain. "But that gun is part of our history," said McCoy. "Not for sale."

That does not mean the thing can't still generate some cash. McCoy and Yoder are looking at the Dillinger Tommy not as a one-time windfall but as a sort of annuity, or golden goose. If the gun can be made operable at a reasonable cost, they would make it available to members of the public who, in exchange for a donation, would be invited to conjure their inner Dillinger and squeeze off a round or two. "It would be an anomaly, a special thing, and a great way to draw some interest in shooting the gun and in (funding) the training center," Mayor Yoder said.

The town would get the money it needs and still own the gun, which it would display long-term in its acclaimed automobile museum, the Auburn Cord Duesenberg Museum.

Crime-wise, not much happens in Auburn other than meth production on the outskirts, so Dillinger's raid is still an important part of the town's back story. Most people here know something about it.

Ed McDonald knew everything about it. He was born and raised in Auburn and was a long-time cop here and a fanatic when it came to history. He studied genealogy, collected old newspaper clippings, visited cemeteries. He threw away nothing. His notes, his paperwork, his scrapbooks filled his two-car garage (McDonald never married). "I was working a burglary case once," said Stump, a McDonald colleague, "and Ed recognized the guy's name, and he goes back and finds his notes from a case - from 1976."

After he retired from the police force in 1993, McDonald devoted himself to finding the Dillinger Tommy gun.

"That's what drove Ed," said McCoy. "Once Ed started looking up something," said his sister, Caroline Baughman, "he totally kept right on it. History is all he did."

In his sleuthing, McDonald turned up several vintage Tommy guns, including the one Auburn bought to replace the one Dillinger stole (the department sold it after it became obsolete, in the 1970s). But the Dillinger Tommy remained elusive. Then, one day in 2010, out of the blue, a gun collector and Dillinger buff from California notified Auburn Police that its gun was on display at FBI headquarters in Washington. The collector/buff, who may have been motivated after learning of McDonald's efforts, insisted on anonymity, McCoy said.

The FBI and John Dillinger are forever linked. The bureau was founded in 1908, but it didn't do anything major until it hunted down and killed its "Public Enemy Number One," on July 22, 1934, eight months after the Auburn affair.

Dillinger had lost possession of the Tommy gun earlier that same year, following his arrest in Tucson, Ariz., where he and his gang had gone to lay low after pulling off a flurry of bank robberies in the Midwest.

Several Dillinger gang members stayed at Tucson's Congress Hotel, which (through no fault of their own) caught fire. Firefighters recognized the bank robbers, and the Tucson Police Department arrested them and later their boss. This they did without firing a shot (though, according to a press account of the day, the Tucson policeman who took Dillinger squeezed off the following killer sentence: "Reach for the moon, or I'll cut you in half.").

The outlaws had to hand it to them: "DILLINGER LAUDS TUCSON POLICE," said a headline in the Arizona Daily Star. "Smartest cops we have seen," said Harry Pierpont, one of Dillinger's lieutenants.

In arresting the Dillinger gang, the Tucson Police Department seized their weapons, including the Auburn Tommy gun. The gun still bears a sticker that says "Tucson Police Dept." The TPD disabled the gun and probably used it for ornamentation. Holes drilled into it suggest a wall mount.

In 1966, the TPD made a gift of the gun to longtime FBI director J. Edgar Hoover, who'd overseen the Dillinger operation and by then had become one of the nation's most powerful people. The public relations-savvy Hoover displayed the gun at the bureau's widely toured headquarters in Washington.

McDonald and others in Auburn knew four years ago that the gun rightly belonged to the Auburn Police Department, but the FBI made them wait. Stump, who is passionate about guns (he has a collection of his own), became impatient. In an interview, he started to go off a bit on the bureau, but Chief McCoy calmed him with a glance.

"Well, we had to do a lot of research, and that takes time," explained Robert A. Jones, who's in charge of the FBI office in Indianapolis. Guns back in Dillinger's day weren't registered, Jones said, so for proof-positive, Auburn was compelled to reach deep into its records and produce the sales receipt.

The Dillinger Tommy is for now locked in a closet at the Auburn Police Department. But since its return last month, a lot of people have been allowed to handle it, and be photographed handling it, including Mayor Yoder and visiting journalists.

But Ed McDonald never got to. He died in February 2013 of an apparent heart attack at age 74.

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Tommy gun Dillinger swiped back home again in Indiana

Auburn Police Chief Martin McCoy holds the Dillinger Tommy gun. / Michelle Pemberton/The Star

AUBURN, Ind. -- It was an incident some people in Auburn might rather forget, but others are resurrecting it with the idea of making money.

Auburn's mayor, Norman Yoder, called it "our Barney Fife moment": Late on the night of Oct. 14, 1933, gangster John Dillinger's men barged through the unlocked front door of the police station in this northern Indiana county seat, reportedly just as one of the officers was preparing to enjoy a bag of popcorn.

Soon, the police were locked up in their own jail cell, and the gangsters were driving away with the department's entire arsenal - three bullet-proof vests, six pistols, two rifles, hundreds of rounds of ammunition and the prize: a Thompson submachine gun. The Thompson, known popularly as a "Tommy gun," a "chopper," a "Chicago typewriter," is one of America's iconic weapons brandished viciously, or carried not that discreetly in a violin case, in gangster movies since the Depression.

In March, 80 years after it was stolen, that very weapon, by now a highly collectible piece of history believed to have been wielded by Dillinger personally (and valued conservatively at $150,000, which is way more than Dillinger ever got from any one bank), was back in the hands of the Auburn Police Department. A high-ranking FBI man handed it over, with ceremony, in the rotunda of the DeKalb County Courthouse, across the street from the police station, which looks a lot like it did in 1933, except now they lock the door.

The guns of famous outlaws hold a special place in collectors' hearts, and their mark-up is pronounced; Dallas-based Heritage Auctions recently sold Dillinger's Derringer for $95,000. In 2012, a snub-nosed .38 special found taped to the thigh of a deceased Bonnie Parker, of Bonnie and Clyde infamy, was sold for $264,000. In June 2013, a garden-variety revolver owned by Al Capone's older brother Ralph will go on the block, and even that is expected to fetch between $15,000 and $20,000.

It happens that the Auburn Police Department has for some time been trying to raise money privately for a new training center. The facility would have an indoor shooting range and classrooms and would cost $300,000. More than half has been raised, which means they could break ground the moment they sell the Dillinger gun. They've already had an offer of "slightly more than $100,000," said Martin McCoy, police chief. "Guy from Ohio," said Mark Stump, a police captain. "But that gun is part of our history," said McCoy. "Not for sale."

That does not mean the thing can't still generate some cash. McCoy and Yoder are looking at the Dillinger Tommy not as a one-time windfall but as a sort of annuity, or golden goose. If the gun can be made operable at a reasonable cost, they would make it available to members of the public who, in exchange for a donation, would be invited to conjure their inner Dillinger and squeeze off a round or two. "It would be an anomaly, a special thing, and a great way to draw some interest in shooting the gun and in (funding) the training center," Mayor Yoder said.

The town would get the money it needs and still own the gun, which it would display long-term in its acclaimed automobile museum, the Auburn Cord Duesenberg Museum.

Crime-wise, not much happens in Auburn other than meth production on the outskirts, so Dillinger's raid is still an important part of the town's back story. Most people here know something about it.

Ed McDonald knew everything about it. He was born and raised in Auburn and was a long-time cop here and a fanatic when it came to history. He studied genealogy, collected old newspaper clippings, visited cemeteries. He threw away nothing. His notes, his paperwork, his scrapbooks filled his two-car garage (McDonald never married). "I was working a burglary case once," said Stump, a McDonald colleague, "and Ed recognized the guy's name, and he goes back and finds his notes from a case - from 1976."

After he retired from the police force in 1993, McDonald devoted himself to finding the Dillinger Tommy gun.

"That's what drove Ed," said McCoy. "Once Ed started looking up something," said his sister, Caroline Baughman, "he totally kept right on it. History is all he did."

In his sleuthing, McDonald turned up several vintage Tommy guns, including the one Auburn bought to replace the one Dillinger stole (the department sold it after it became obsolete, in the 1970s). But the Dillinger Tommy remained elusive. Then, one day in 2010, out of the blue, a gun collector and Dillinger buff from California notified Auburn Police that its gun was on display at FBI headquarters in Washington. The collector/buff, who may have been motivated after learning of McDonald's efforts, insisted on anonymity, McCoy said.

The FBI and John Dillinger are forever linked. The bureau was founded in 1908, but it didn't do anything major until it hunted down and killed its "Public Enemy Number One," on July 22, 1934, eight months after the Auburn affair.

Dillinger had lost possession of the Tommy gun earlier that same year, following his arrest in Tucson, Ariz., where he and his gang had gone to lay low after pulling off a flurry of bank robberies in the Midwest.

Several Dillinger gang members stayed at Tucson's Congress Hotel, which (through no fault of their own) caught fire. Firefighters recognized the bank robbers, and the Tucson Police Department arrested them and later their boss. This they did without firing a shot (though, according to a press account of the day, the Tucson policeman who took Dillinger squeezed off the following killer sentence: "Reach for the moon, or I'll cut you in half.").

The outlaws had to hand it to them: "DILLINGER LAUDS TUCSON POLICE," said a headline in the Arizona Daily Star. "Smartest cops we have seen," said Harry Pierpont, one of Dillinger's lieutenants.

In arresting the Dillinger gang, the Tucson Police Department seized their weapons, including the Auburn Tommy gun. The gun still bears a sticker that says "Tucson Police Dept." The TPD disabled the gun and probably used it for ornamentation. Holes drilled into it suggest a wall mount.

In 1966, the TPD made a gift of the gun to longtime FBI director J. Edgar Hoover, who'd overseen the Dillinger operation and by then had become one of the nation's most powerful people. The public relations-savvy Hoover displayed the gun at the bureau's widely toured headquarters in Washington.

McDonald and others in Auburn knew four years ago that the gun rightly belonged to the Auburn Police Department, but the FBI made them wait. Stump, who is passionate about guns (he has a collection of his own), became impatient. In an interview, he started to go off a bit on the bureau, but Chief McCoy calmed him with a glance.

"Well, we had to do a lot of research, and that takes time," explained Robert A. Jones, who's in charge of the FBI office in Indianapolis. Guns back in Dillinger's day weren't registered, Jones said, so for proof-positive, Auburn was compelled to reach deep into its records and produce the sales receipt.

The Dillinger Tommy is for now locked in a closet at the Auburn Police Department. But since its return last month, a lot of people have been allowed to handle it, and be photographed handling it, including Mayor Yoder and visiting journalists.

But Ed McDonald never got to. He died in February 2013 of an apparent heart attack at age 74.

Read the original story: Tommy gun Dillinger swiped back home again in Indiana

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CMS to sweeten Medicare Advantage deal

The Centers for Medicare & Medicaid Services (CMS) says it is increasing its estimate of the projected change in Medicare Advantage plan per-person costs 0.4 percent for 2015.

In February, CMS had proposed using a 1.9 percent decrease in projected per-person costs in the official plan bidding documents.

CMS actuaries are now expecting the actual cost of care for the plan enrollees to fall 3.4 percent. Just a few weeks ago, the actuaries were expecting costs to fall only 1.9 percent, CMS Director Jonathan Blum said today during a conference call with reporters.

But CMS scraped up part of the 2.5-percentage-point increase in the actual bidding benchmark by changing the way it calibrates one Medicare Advantage risk management program and slowing the phase-in of another risk management program that could have decreased the benchmark, Blum said.

Blum noted that the benchmark represents an average for all plans in the Medicare Advantage program, in all geographic areas and at all quality-based reimbursement rate levels.

The projected per-capita cost change benchmark is just one component of a Medicare Advantage plan rate proposal, Blum added.

America's Health Insurance Plans (AHIP) analyzed the figures CMS included in its original 2015 Medicare Advantage program proposal and said it believed the overall proposed benchmark decrease was really 5.9 percent, not 1.9 percent.

At press time, AHIP had not reacted to the CMS announcement about the 0.4 percent benchmark increase or weighed in on what insurers think the benchmark change really is.

The original CMS 2015 program proposal included a cap on Medicare Advantage plan agent and broker sales and referral compensation.

At press time, CMS had not said anything about producer compensation.

CMS officials said they would post detailed documents about the 2015 program later today.

The Medicare Advantage program gives insurers a chance to sell plans that serve as an alternative to the traditional Medicare Advantage program.

Medicare Advantage program rules do not have a direct effect on the ordinary commercial health insurance market, but, because the program makes up such a large part of the health care market, it has an indirect effect on the cost of care and the cost of commercial health insurance.

In some cases, carriers with a large Medicare Advantage program may try to make up for a reduction in Medicare Advantage plan underwriting margins by raising commercial plan rates and cutting commercial plan benefits. See also:

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Commissioner Stewart Provides Information About Annuities During National ...

Dover, DE-Insurance Commissioner Karen Weldin Stewart recommends that all Delawareans should have a plan for financial stability in retirement, outside of relying on Social Security alone. Individuals are suggested to formulate or review their retirement income strategy during National Retirement Planning Week, April 7-11, and consider if an annuity might be a beneficial addition to their retirement plans.

Commissioner Stewart stated, "Annuities are popular for people seeking a steady and reliable income after retirement but today's market offers a wide range of annuities with varying degrees of risk. While an annuity can be beneficial they can also be very complex. It's important that consumers research all of their options before signing any kind of contract." Is an annuity right for you? If you are thinking about buying an annuity, the National Association of Insurance Commissioners (NAIC) and the Delaware Department of Insurance offers the following information to help determine if an annuity is right for you.

Annuity Basics: An annuity is a contract in which an insurance company agrees to make a series of payments in return for a premium (or premiums) that you have paid. Many consumers buy annuities so that they will have a regular income after they retire. An annuity is an investment and shouldn't be used to reach a short-term financial goal. Buying an annuity may or may not be right for you. Contact a licensed agent or broker to be sure an annuity is the right choice for your financial future. If you have questions regarding retirement planning, you should consult a reputable financial planner to make sure you are on target to meet your goals.

There are several types of annuities, all of which carry varying levels of risk and guarantees. To find the annuity that will best suit your needs, it is important to know the difference between each and the benefits offered.

* Single Premium Annuity: You pay the insurance company only once. * Multiple Premium Annuity: You pay the insurance company multiple payments. * Immediate Annuity: You will begin to receive income payments no later than one year after you pay the premium. * Deferred Annuity: After the initial savings phase, you receive income payments once you choose to receive them. * Fixed Annuity: Your money, minus any applicable charges, earns interest at rates specified in your contract. * Variable Annuity: The insurance company invests your money, minus any applicable charges, into a separate account based upon the amount of risk you want to take. The money can be invested in stocks, bonds, or other investments. * Equity-Indexed Annuity: A variation of a fixed annuity in which the interest rate is based on an outside index, such as a stock market index. The annuity pays a base return, but it may be higher if the index increases.

Commissioner Stewart noted, "If you decide that an annuity would be a good addition to your retirement income strategy it is very important that you work with a licensed, qualified agent or broker to purchase the right annuity since there are so many options. Consumers need to take the time to read all contracts in their entirety and fully understand all fees and potential charges that could be incurred. You should never feel pushed, pressured or hurried in to signing a contract."

Buying an Annuity: Delaware state law requires a suitability analysis before the sale or replacement of any annuity product. This analysis includes an evaluation of your financial position, income needs and the cost of liquidating any assets. This can help you determine which annuity is right for you. You can also contact the Delaware Department of Insurance to get a list of the information your agent or broker should provide before you make a decision.

Just as with other major purchases and investments, it's a good idea to shop around and compare information for similar products from several companies. While you do your research, keep detailed records and get all quotes and key information in writing.

When you are ready to purchase an annuity, carefully review the contract with your agent or broker. Ask for an explanation of anything that you don't understand. Be sure you are aware of all of the terms and conditions such as surrender charges and/or cancellation penalties.

After purchasing an annuity you are entitled to a "free look" period, which ranges from 10-15 days in Delaware, to review the annuity contract after purchase. If you decide during that time that you no longer want the annuity, you can cancel for a full refund. The free look period will be prominently stated on the front cover of your contract.

Don't Be Pressured: Unfortunately, some insurance providers use inappropriate sales practices in an attempt to take advantage of consumers with limited knowledge of complex financial and insurance products. Beware of any agents who pressure you into buying a product quickly or presents you with a deal that seems too good to be true. You should always research the agent and company with which you're considering doing business. Consumers can use the free Licensee Lookup online verification service on the Department of Insurance website to confirm the license status of an agent at http://ift.tt/1imfPqJ

For more tips and info about annuities, including a list of questions to ask anyone who is attempting to sell you an annuity, please visit the Department of Insurance website at http://ift.tt/1hmiDJq. Consumers may also call the Consumer Services Division at 1-800-282-8611 for help with additional questions or concerns.

###

Delaware Department of Insurance: "Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public."

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SEC Chair Aims At Investor Protection

By Cyril Tuohy

InsuranceNewsNet

Securities and Exchange Commission (SEC) Chairman Mary Jo White was sworn into office a year ago and over the past several weeks she's made no secret of her desire to protect the retail investor.

The SEC, White said in a speech to the Consumer Federation of America, plays an advocacy role with regard to retail investors, she said. "Protecting investors underlies everything we do," White said.

To protect investors, the agency sees its role as one of educating investors, enforcing laws designed to protect investors and coming up with new rules governing the duties and behavior of financial advisors and broker/dealers, she said.

In February, for example, the SEC named Rick A. Fleming as the first head of the agency's Office of the Investor Advocate.

Fleming's role is to help retail investors deal with the SEC and self-regulatory organizations, and find areas where investors could benefit from changes to rules and regulations. Between 1996 and 2011, Fleming represented Kansas in proceedings against broker/dealers and financial advisors, and testified before state lawmakers on matters of investor protection.

The SEC has also taken a special interest in educating investors about variable annuities (VAs), in an investor bulletin titled "Variable Annuities-An Introduction," issued in February by the agency's Office of Investor Education and Advocacy.

VAs, defined as an "investment product with insurance features," have become more popular among financial advisors seeking higher returns from their client portfolios at a time when interest rates are low, but stock market returns are soaring.

A week before White delivered her talk to the Consumer Federation, the SEC announced charges against brokers and financial advisors in connection with a variable annuities scheme to profit from the imminent death of terminally ill patients in nursing homes and hospice care.

The SEC named seven people and an advisory firm, BDL Manager, as part of a scheme to sell VA contracts from which investors, not the contract holder, could receive death benefit payouts and other credits upon the death of the annuitant.

Settlements are expected to exceed $4.5 million in the case, the SEC said.

White, considered one of the best lawyers in the securities business, has come under some criticism for representing Wall Street executives while she was a securities litigator with the prestigious law firm of Debevoise & Plimpton.

Critics say she's yet another example of the revolving door between Washington and Wall Street, and that she's even used her influence to protect CEOs from prosecution.

In the broader context of protecting retail investors, though, few would question White's resolve as the SEC looks to implement key aspects of the Dodd-Frank Act.

The sweeping law, passed in the wake of the financial crisis, is aimed at protecting Main Street investors by curbing the huge risks that Wall Street seems all too willing to take - often with other people's money.

In the rule-making department, for instance, White announced that uniform fiduciary standards for broker-dealers and investment advisors were "an immediate and high priority," as outlined under Section 913 of the Dodd-Frank Act.

"I have made this a priority because it is very important and we need to move forward to a decision," she said.

When advising retail investors, broker/dealers are only required to meet a "suitability" threshold as a standard. Investment advisors are required to meet a fiduciary standard, which is considered a higher standard of care.

Investors, though, often don't know the difference between suitability and a fiduciary standard, much less that such a distinction even exists. Critics of the financial advisory industry point to the conflicts of interest inherent in the lower suitability standards threshold.

Last year, White also announced that the agency was raising the bar on which defendants would be allowed to settle cases "without admitting or denying what they did wrong or admitting to facts that showed that they broke the law."

Known as the "no admit/no deny" settlement protocol, the enforcement strategy has for years allowed the SEC to speed up the return of ill-gotten gains. It has even allowed the SEC to obtain the equivalent or higher penalties through the settlement than if the matter had been brought to court.

But under White, the SEC last summer toughened the no admit/no deny standard. Accused parties are required to admit fault in cases where violations are "particularly egregious," or where many investors were harmed or placed at high risk.

White said the change was necessary to "achieve greater public accountability and bolster the public's confidence in the safety of our markets."

In 2013, the SEC's Enforcement Division obtained orders to return $3.4 billion in penalties, the highest level in the agency's history, the SEC said.

Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. Cyril may be reached at cyril.tuohy@innfeedback.com.

© Entire contents copyright 2014 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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Morgan Stanley (NYSE:MS) – Brownfield Remediation Proposal Wins First Place ...

[Business Wire] - A proposal to create an investment vehicle to remediate brownfields using poplar trees has taken first place in the 2014 Morgan Stanley Sustainable Investing Challenge. A team of students from the Kellogg School of Management at Northwestern University presented the investment strategy behind the proposed Fresh Coast Forest Fund last week at Morgan Stanley's New York City headquarters.Read more on this.

Morgan Stanley (MS), valued at $57.75B, opened this morning at $30.35. During today's session, MS traded between $29.09 to $30.38 and has traded between $20.16 and $33.52 over the past year. MS shares are currently priced at 12.60x this year's forecasted earnings, which makes them relatively inexpensive compared to the industry's 20.22x forward p/e ratio. And for dividend hunters, the company pays shareholders $0.20 per share annually in dividends, yielding 0.70%. In a review of the consensus earnings estimate this quarter, 24 sell-side analysts are looking at $0.60 per share, which would be $0.01 worse than the year-ago quarter and a $0.06 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $2.41, which would be a $0.35 improvement when compared to the last year's annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $8.57 Billion. If reported, that would be a 1.06% increase over the year-ago quarter. More recently, Deutsche Bank downgraded MS from Buy to Hold (Dec 5, 2013). Previously, Oppenheimer downgraded MS from Outperform to Perform. Given all the information above, we should disclose to readers that the average price target is $33.69, which is 11.00% above than it opened this morning. Summary (NYSE:MS) : Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide. The company's Institutional Securities segment offers financial advisory services on mergers and acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, exchange offers, leveraged buyouts, takeover defenses, and shareholder relations, as well as provides capital raising and corporate lending services. This segment is also engaged in sales, trading, financing, and market-making activities, including institutional equity, fixed income and commodities, research, and investment activities, as well as offers financing services, such as prime brokerage, consolidated clearance, settlement, custody, financing, and portfolio reporting services. Its Wealth Management segment provides brokerage and investment advisory services covering various types of investments comprising equities, options, futures, foreign currencies, precious metals, fixed income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs. This segment also offers education savings programs, financial and wealth planning services, annuity and other insurance products, cash management services, trust and fiduciary services, retirement solutions, and credit and other lending products, as well as fixed income principal trading services. The company's Investment Management segment provides alternative investment products, such as hedge funds, private equity and real estate funds, and portable alpha strategies to institutional and intermediary channels, and high net worth clients, as well as is involved in real estate investing and merchant banking businesses. Morgan Stanley was founded in 1935 and is headquartered in New York, New York. Tag Helper ~ Stock Code: MS | Common Company name: Morgan Stanley | Full Company name: Morgan Stanley (NYSE:MS) .

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Financial planning: A new widow needs to take action after her spouse's death

By Pam DumonceauSpecial toThe Denver Post

Posted: 04/07/2014 12:01:00 AM MDT The situation

Updated: 04/07/2014 10:17:13 AM MDT

Unforeseen life changes can be financially devastating for families. This week, we look at the case of a widow dealing with her finances and the decisions she and her husband made while he was alive.

Katie, 66, and Kenny, 67, were high school sweethearts and had been married for 47 years in Westminster. Aside from a few temporary positions, Katie had been a stay-at-home mom raising their four children. Kenny, a retired government employee, died a few months shy of his 68th birthday. Prior to his sudden death, Kenny and Katie had selected a pension plan with an irrevocable consequence: The couple was presented with four options, three of which would have continued pension payments until they were both deceased. But Kenny and Katie chose the fourth option that stopped payments with Kenny's death.

Kenny's death was the result of the sudden onset of a genetic illness that also took his father's life. In hindsight, Katie realized this should have been the determining factor in choosing Kenny's pension plan.

At the time of Kenny's death the couple had $209,000 in Kenny's 401(k), $116,000 in mutual funds and $75,000 in their bank account. Now alone in their home, Katie decided to have a few home improvements done. She replaced all the windows, doors and siding, at a total cost of $29,000. Katie then consulted with their "insurance and investment guy," and he recommended she invest the remaining money "conservatively" in annuities and municipal bonds. Recommendations

Katie is contemplating a reverse mortgage, but would love to find a solution avoiding that option and a plan that creates the opportunity to eventually leave the home to her children.

A dear friend of Katie's urged her to get a second opinion and write in to What's the Plan.

Every penny is going to count for Katie.

The first step is to roll Kenny's 401(k) into an IRA in Katie's name, so she is independent of his former employer. Katie can continue collecting Social Security, but the benefit will be reduced by $807 because of Kenny's death - she can no longer collect both her benefit and his, so she'll get only the greater of the two.

I recommend a moderate allocation of 50 percent stock and 50 percent taxable-interest bond mutual funds for Katie's portfolio. Annuities have safety features and provide tax advantages, but also come with big commissions for the broker and high expenses for the investor. Katie will not be in a high tax bracket going forward, so the tax advantage of annuities and municipal bonds are of little value now.

To be sure Katie's Social Security doesn't become taxable and she stays in a low tax bracket, I recommend that she withdraw $500 per month from her IRA, and another $400 to $500 from the mutual-fund account. If Katie slowly draws on the IRA, she'll be able to stay in a low tax bracket indefinitely. Pam Dumonceau has 21 years of experience in the financial planning industry. "What's the Plan" is not a substitute for actual financial planning or dedicated professional advice. To participate, contact Consistent Values at whatstheplan@ consistentvalues.com. Names and identifying information changed to protect confidentiality.

Despite the recent renovations, Katie needs to seriously consider moving to a smaller home. Ideally, she would use the equity in her current home to pay off a smaller, more affordable residence. This would eliminate a large monthly expense and additional home renovations on the current home. Katie also mentioned that Kenny had collected several "toys" over the years, including a truck, boat, trailer, camper, two jet skis and a motorcycle. I recommend selling as many of these as possible for additional cash flow.

These changes will provide Katie with approximately $2,540 to $2,849 per month. If she does not find this income sufficient, she may need to consider a reverse mortgage to provide the additional funds needed during her lifetime.

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MetLife Inc (NYSE:MET) | MetLife Recognized for Transparency on Hispanic ...

[Business Wire] - MetLife, Inc. announced today that it has been recognized by the Hispanic Association on Corporate Responsibility for its commitment to transparency on HispanicRead more on this.

MetLife, Inc. (MET), currently valued at $58.18B, started trading this morning at $52.67. Looking at today's trading action, the company's one day range from $51.71 to $52.75 with the price of the stock fluctuating between $35.25 to $54.80 over the last 52 weeks. MET shares are currently priced at 9.29x this year's forecasted earnings, which makes them relatively inexpensive compared to the industry's 15.27x earnings multiple. And for passive income investors, the company pays shareholders $1.10 per share annually in dividends, yielding 2.10%. In a review of the consensus earnings estimate this quarter, 19 sell-side analysts are looking at $1.41 per share, which would be $0.07 worse than the year-ago quarter and a $0.00 sequential decrease. Investors should also note that the full-year EPS estimate of $5.69 is a $0.06 better when compared to the previous year's annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $17.67 Billion. If realized, that would be a 4.06% 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. When considering if the stock is under or overvalued, the average price target is $60.19, which is 14.28% 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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Special Olympics Florida's Nasif Ali, First Special Olympics Athlete to ...

- Its official and the times have been released! Nasif Ali, the first Special Olympics Athlete to complete the Miami Half Marathon completed the race in 1 hour 57 minutes.

Andrew Savysky, President of 123 Lump Sum and Chairman of the Development Committee for Special Olympics Miami Dade County, mentored and trained with Ali for several months. Together, they have participated in a number of 5Ks and will participate in Special Olympics State Summer games in Orlando in June. Although Nasif has competed in several prior local runs, this was his first half marathon.

Andrew also received the 2014 "People Who Run Miami" award from US Road Sports & Entertainment. The award recognizes leaders who have significantly contributed their passion for running in their community.

"We are thrilled that Nasif Ali was able to accomplish his goal of completing the Miami Half Marathon. This is a incredible victory for Nasif and will undoubtedly encourage other Special Olympics athletes to dream big. We are encouraged by Andrew's commitment as Nasif's Unified Partner to help him realize his goal and hope that it will inspire other community leaders to donate their time," said Linsey Harris Smith, Director Special Olympics Florida - Miami-Dade County.

A favorite among runners from all over the country, the Miami marathon and half marathon is one of the most scenic and most popular runs in the country. Formerly known as the ING, and already in its 12 ^th year, 25,000 plus participants arrive in Miami to enjoy the warm weather while welcoming runners from all over the world. About Special Olympics Florida, Miami-Dade County

The mission of Special Olympics is to provide year-round sports training and athletic competition in a variety of Olympic-type sports for children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy and participate in a sharing of gifts, skills and friendship with their families, other Special Olympics athletes and the community. Visit www.somdc.org to learn more. About 123 Lump Sum

Located in South FL, 123 Lump Sum is a specialty finance company that applies institutional financing, underwriting and legal expertise to purchase future cash flows (structured settlements and insurance annuities). For more information about 123 Lump Sum, please visit www.123lumpsum.com

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how to do your taxes

When I was a kid I used to envy adults. I thought they had the coolest lives with their permed hair and court shoes. I used to promise myself that when I grew up I'd only wear heels, drive a fancy car and eat Froot Loops 24/7.Then I grew up.My dreams of eating Froot Loops were shattered when a bald old dude at Kelloggs decided to pull the plug on it, and I realised that in order to drive a fancy car you have to sell your soul to the devil.I only found out about tax in standard 9, and yet I still didn't realise that it meant that a moerse part of my salary would be taken away to sustain politicians the country.When I got my first paycheck I nearly threw up all over my pumps (turns out courtshoes are kak uncomfortable) when I saw the amount that was deducted for taxes. Then, later that week when I got an envelope from the receptionist, I thought that it was extra money cover the wound the tax deduction had left.It turned out to be a cruel piece of paper that listed my tax deductions. Oh nice hey, throw some salt on my wounds. Thanks.I later found out that it's called a payslip. Huh?I also found out that that little piece of paper lists the amount of days I have freedom, aka leave.Leave was another ball game for me. Coming from Red & Yellow meant that I was used to having fewer and shorter holidays than universities. I thought that I was prepared for the "real world".Hahahahahahaha. I was wrong.I soon found myself getting super jealous and bitchy towards people who had more leave than me.Colleague: I want to go to Thailand for ten days.Me: Die.Then along came Sanlam with their sensible pension and annuity plans.I DON'T WANT TO SPEND MY MONEY ON SENSIBLE THINGS.I WANT TO BUY A BEDAZZLED CAR WITH LEOPARD PRINT CAR SEATS.And so the debit order game started. I don't know why I'm calling it a game, because I always lose. I also found out that if I ever want to buy a bitching car, I have to have a credit record. So I needed to open a clothing account.

To summarise: You need to have debt to buy a car.

Don't even ask me how that works. It still melts my brain.

Growing up is super confusing and I often find myself feeling like a baby in adult clothes.But it's not all bad. Even though the tax man sucks all the happiness from my body like a dementor, I still have some extra tjing tjing to YOLO.So I often buy myself the things I dreamt of as a child. Pink heels, pretty dresses, sweets (they know me by name at Sweets from Heaven) and glitter EVERYTHING.I also bought myself a phone that makes me look super professional even though I use it to take selfies.And have I mentioned that the tax man regurgitates some of your money once a year? Yeah, you can claim some money back. Not a lot, but just enough to stop you from throwing up on SARS' stoep.I'm also fortunate enough to have a job that would make little Anja proud.This whole growing up business is terrifying, yet awesome at the same time.(Until I get my next bill)Follow Women24on Twitter or like us on .

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White, SEC Look At Improving Investor Protection

Neptune's Mark Martin: Four reasons to buy more mid caps

The UK mid cap sector has done extremely well over the past three years as the UK domestic economy has slowly improved.

Many UK mid-caps sell into the domestic market and have recovered as the latter has too, while there are a number of high-end engineering, technology and industrial stocks which are doing well in globalised industries.

However, some investors worry that it is yesterday's story, and that investors buying into the sector now are paying too much. Performance of indices over 3yrs

FE Alpha Manager Mark Martin, who runs the five FE-crowned Neptune UK Mid Cap fund says they are wrong to be concerned. Here are his top four reasons to believe mid caps are going to continue to make investors a lot of money. M&A activity can make you a lot of money

Martin points out that there has been a large uptick in the amount of mergers and acquisitions in the UK mid cap space, and this looks likely to be a theme of the coming year.

Companies that are taken over are done so at a premium to their market price, giving investors an immediate boost to their returns.

"We are expecting a pickup in M&A, We are seeing it on a fairly regular basis, just recently there was Weir Group talking about tying up with Metso," Martin said.

"We have had a lot of success with M&A in the past [in the fund], eight companies being taken over for a significant premium."

"I think when I look at the fund it's possible that just about every single company could be taken over, although it's never a primary reason to buy a company."

One major reason to expect M&A to pick up is the rise in interest rates that is foreseen for the end of this year or the beginning of the next one.

"In this environment in which we are just starting to see interest rates increase a lot of companies will be thinking that it could be a good time to lock in cheap financing," Martin said.

"If they believe rates will be higher in a year or two they will be wanting to lock in low rates now." It's a way to avoid political risk

Martin has recently opened a position in TalkTalk, and says he wouldn't be surprised to see Vodafone show some interest in it in the future as it looks to enlarge and avoid becoming a target for a larger US firm.

"M&A is a speculative reason to hold mid-caps, but an interesting area for me is political risk, which is on the increase," Martin said.

"The general election is coming up and Ed Miliband has been talking about utility companies, while we have seen what has happened to life insurance companies recently." Performance of sector and market since Budget

Martin is referring to the reforms announced to pensions last month in the budget, which are widely expected to see a massive reduction in the number of savers purchasing annuities.

Although FTSE 250 company Just Retirement was among the companies hit by the news, Martin admits, most of the pain was felt by the large cap life insurers which have become a popular way for managers to get financial exposure in a world with dodgy UK retail banks.

"Political risk in the mid caps and the small caps is less than in the FTSE 100," he said.

In fact, the political pressure is behind some of the sectors in which the mid-cap sector is strong, Martin adds.

"The wider sector, the make up of the 250, you have lots of housebuilders who have been getting political help, industrial engineering companies and high tech exporters," he said. The UK economy is genuinely improving - and outside London too

"The government is quite keen, particularly Vince Cable, on incentivising exporters and talking up the importance of exporters to the UK."

Martin cites the "patent box" policy, which seeks to encourage companies to develop and produce ideas in the UK. The scheme sees companies pay a lower rate of tax on patented inventions. Qinetiq, the defence company, and Vectura are two stocks he owns which he says are set up to benefit from this.

"What we are seeing in the market isn't a distortion of reality, it reflects the fact that economic outlook right now in the UK is really quite exciting," Martin said.

"It has been a really long, slow recovery from the 2008/2009 downturn, but we are just starting to see signs the recovery is taking root and that the recovery is starting to extend geographically, not just in London and the South-East."

Martin says that he has been buying baker Greggs, which does a large part of its business in the Midlands and the north East. Performance of stock vs index over 2yrs

"It's an interesting self-help story," he said. "They have been closing down underperforming stores."

"They are also geared to the economic recovery in the construction sector because of the demographics of the people who go to Greggs."

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