NAIFA Blog

NAIFA's representative governing body, the National Council, has elected new officers and trustees, September 14 at the 2010 NAIFA Career Conference and Annual Meeting, held in Seattle. NAIFA’s new President is Terry Headley, LUTCF, LIC, FSS president, The Headley Financial Group, in LaVista, NE.

Joining Headley on NAIFA’s Executive Committee are: President-elect Robert A. Miller, MA, MS, Miller Pomerantz in New York, NY.; Treasurer Randy L. Scritchfield, CFP, LUTCF, Montgomery Financial Group, Inc., Damascus, MD; and Secretary Robert O. Smith, JD, CLU, ChFC, special agent, Northwestern Mutual Financial Network, Grand Rapids, MI.

After serving his one-year term as president, Thomas D. Currey, CLU, ChFC, owner of TDC Financial Services in Mansfield, TX, becomes immediate past president, and will remain a member of NAIFA’s Executive Committee.

To see the other members elected to the board, click here.

One of the highlights of NAIFA's general session on Sept. 13 was a presentation by Julian H. Good, Jr., president of MDRT, about why advisors should become involved in NAIFA and MDRT. Good emphasized that members who are committed and active in the organizations are more likely to become successful, and the more involved you are, the more opportunities you'll find to improve yourself and your practice. Being "just a member," on the other hand, encourages mediocrity and lost opportunities, he said.

Involved members bring the following tools to the organizations: passion, tenacity, consistent habits and the ability to think tactically, strategically and creatively. While those traits can help NAIFA and MDRT grow, participation in the organizations provide several benefits for each advisor, Good said. For example, active members will learn more about their profession by taking advantage of educational offerings, local and national meetings, publications, podcasts, webinars and material on the MDRT and NAIFA websites. Participation also offers opportunities for networking, and personal growth and enrichment, Good said. Advisors can also learn valuable leadership skills.

The general session also included a legislative update from the NAIFA Government Relations staff and outside counsel. They reminded NAIFA members of the legislative successes the association has had over the last year and the challenges that remain. They encouraged members to get involved in state legislative efforts at the grassroots level, as many issues affecting the industry will be decided on a state-by-state basis, as well as at the federal level.

Also, LIFE presented its 2010 recipients of the realLIFEstories Award. Each winner and his or her advisor told their emotional stories about the value of life insurance and disability income insurance. Jack P. Dewald Jr. of LIFE explained how advisors can use realLIFEstories to promote their services.

Attendees at the NAIFA Career Conference and Annual Meeting in Seattle learned about the 10 most common life insurance mistakes and how to avoid them from industry veteran Monte Scott, LUTCF, regional sales director for Midland National. The mistakes are:

1. The insured’s estate is named as the beneficiary.
2. Failure to name at least two back-up beneficiaries for a policy.
3. Failure to check policies at least every three years.
4. The policy they sold does not match the problem the buyer has.
5. The amount of personal coverage is not enough for family security or estate-planning goals.
6. The policy proceeds are payable outright to minor kids, grandchildren, handicapped or emotionally immature or financially irresponsible individuals.
7. All the insurance is owned by the insured.
8. There is no investigation to see if the insured’s business or practice can offer insurance on a more cost- or tax-efficient basis.
9. The purchaser forgot that at some point, the term insurance (including group term) will self-terminate and/or become too expensive for the policy owner to carry.
10. The insurance is bought as though it were a commodity.

The solution to all these problems, Scott told the audience, is to know your clients thoroughly, learn about their families, their health issues and their businesses, meet with them regularly, perform reviews and fact-finders and help them to make the right decisions. “No 1-800  number will do this for them,” he said. “We need to make good recommendations and make sure that our clients do the right thing.”

NAIFA's opening general session on Sept. 12 ended with a few laughs and a little motivation courtesy of Mark Scharenbroich, author of "Nice Bike." He peppered his presentation with jokes and humorous observations about marriage, taking road trips with children and collecting airline miles on frequent trips to Omaha. (He's big in Omaha.)

Scharenbroich was amusing, and the audience seemed to appreciate his wit. But Kenneth R. Evans, a NAIFA trustee, nearly stole the show when Scharenbroich invited him up to the main platform to talk about his love for Harley-Davidson motorcycles (Evans' bike is blue and pewter, not silver) and the challenges a coffee teetotaler faces in a city with a Starbucks store on every corner.

Evans' facial expressions and gestures delighted the audience as Scharenbroich moved from motorcycles and caffeine to gentle faith-based ribbing.

The NAIFA Marketplace sold out of Scharenbroich's books, which he graciously autographed.

It's unclear whether Evans plans to take his own comedy act on the road, but he'll be here all week. Try the annuities.

Taxes are not incidental in retirement. Any effective retirement distribution strategy should help a client plan to distribute income from their accounts to minimize the tax burden to their clients.  The Tax Wise Distribution Strategy makes clear distinctions between accumulation and distribution, and helps a client plan their retirement income. With an understanding of how income should be distributed, younger clients can plan on a proper balance in their accumulation years between pre-tax and after-tax accounts.

Attend the Tax Wise Strategy session, Sunday at 2:30 pm in room 611-612, for this presentation by Edward Dressel.

Calling all YATs attending the NAIFA Career Conference in Seattle!!!

Do you consider yourself politically savvy or “in the know?” Are you an expert navigator of NAIFA’s Advocacy section on the website? Do you want eternal bragging rights amongst your peers and an opportunity to win a great prize? If you answer “yes” to any of these questions, then stop by the YAT Booth in the Exhibit Hall on Sunday or Monday for an opportunity to play YATPAC Scrabble. See the rules here.

The game is pretty simple. Visit various booths, educational sessions and general sessions to pick up a Scrabble letter. Then form a five to seven letter word related to advocacy for an opportunity to win a Freeloader Pico Solar Rechargeable Electronic Charger. The two YATs with the highest point totals win. Yes, it’s that simple!

For more information or questions, look for Angel at the IFAPAC Booth in the Registration Area. Let the games begin!!!!