August 05, 2020
5 Mistakes in Life Insurance Planning
More than three years ago, we first published an in-depth look at 5 mistakes in life insurance planning. Despite shifts in politics and the economy, tax code changes, and other variables of life, the facts remain the same. In personal life insurance planning, particularly as part of estate planning, even minor oversights can lead to major tax problems.
Recognizing that efforts to reduce cost in the short term could lead to problems, we’re resharing this important information on 5 key trouble spots in life insurance planning.
June 17, 2020
PPP Loan Forgiveness Calculation
If your business obtained a PPP loan, whether you plan to repay the loan or to seek PPP loan forgiveness, you need to be fully aware of the revised terms and conditions established under the Paycheck Protection Program (PPP) Flexibility Act of 2020 (PPPFA). The PPP Flexibility Act (HR 7010) was signed into effect by President Donald Trump on June 5, 2020. This action changes and replaces the terms of PPP Act loans and adds flexibility that will be valued by many borrowers.
May 22, 2020
How COVID-19 is Changing Life Insurance in the U.S.
The U.S. life insurance industry is changing. As Valmark Financial Group Chairman, Larry Rybka, said in a recent Wall Street Journal interview, “In 33 years, I have never seen more changes come more quickly to the life insurance products we sell.”
March 02, 2020
Fulcrum Partners Shares AALU Estate Planning Report from Heckerling Institute
On February 20, 2020, AALU released highlights from the 54th Annual Heckerling Institute on Estate Planning. The full AALU report is available as a PDF here: 54th Annual Heckerling Institute on Estate Planning.
January 29, 2020
Legacy and Retirement Planning After the SECURE Act
Fulcrum Partners is pleased to share these in-depth insights about the SECURE Act (Setting Every Community Up for Retirement), published January 23, 2020 by the AALU WR Newswire. The WRMarketplace is created exclusively for AALU members by experts at Baker Hostetler LLP and the AALU staff, led by Jonathan M. Forster, Partner, Rebecca S. Manicone, Partner, and Carmela T. Montesano, Partner. WR Marketplace #20-02 was written by Michael P. Vito, Counsel, and John F. DeStefano, Associate, Baker & Hostetler LLP. #secureact #plansponsor #retirement #retirementplan
December 11, 2019
Reportable Policy Sales Ruling and the Tax Implications for COLI and BOLI
On December 4, 2019, the AALU issued an important WRNewsire AALU Washington Report regarding regulations on Reportable Policy Sales (RPS). The AALU update addresses tax implications for company owned life insurance (COLI) and bank owned life insurance (BOLI) in view of the Treasury Department’s final regulations on RPS. What follows here is an overview of the regulations as provided by AALU. At the end of this overview, you will also find, in entirety, “points 6 through 9” of the previously published Washington Report Newswire analysis.
June 13, 2019
AALU Response to the Regulation Best Interest Rule
Last week the Securities and Exchange Commission (SEC) passed the Regulation Best Interest Rule which the commission says, “will simplify consumer’s lives and tighten the standards governing brokers who sell investment products.” You can read the Commission’s final rule here: Regulation Best Interest The Broker-Dealer Standard of Conduct On June 5, the AALU (Association for Advanced Life Underwriting) issued the following release to the media: AALU Statement on SEC’s Standard of Conduct Final Rule WASHINGTON, D.C. – AALU President and CEO Marc Cadin offered the following reaction to the SEC’s adoption of the Regulation Best Interest. “AALU appreciates the SEC’s effort to ensure that the standard of care for broker-dealers and registered investment advisors is appropriate and protects consumers. Our members work in the best interest of their customers every day,” Cadin said. “We support a best interest standard that preserves commission-based business models as well as product choice and access to professional financial advice.” AALU is currently analyzing the final rule and its impact on consumers of life insurance and annuity products and the financial security professionals who serve them. “While we appreciate the intent of the final rule there are a number of key areas where the ultimate
April 23, 2019
Fulcrum Partners Managing Directors to Speak at AALU Annual Meeting
(PONTE VEDRA BEACH, FL April 23, 2019)— The Association for Advanced Life Underwriting (AALU), will hold its annual meeting April 28-30, 2019, in Washington, D.C. The conference, known as TRANSFORM 2019, is a time of connecting, learning and advocacy for financial professionals who provide life insurance and retirement planning solutions to individuals, families and businesses. Fulcrum Partners Managing Director Steve Broadbent and Managing Director Andy Hart will speak at TRANSFORM 2019 on the topic, “Selecting a COLI Carrier for the Long Run: The Producer’s Dilemma.” “Corporate Owned Life Insurance or COLI,” said Steve Broadbent, “represents some of the longest-held financial instruments in America and is purchased by very sophisticated teams of professionals within U.S. Companies. Fulcrum Partners has been involved with this market almost since its inception and has seen carriers come in, go out and in some cases completely abandon this business line.” Andy Hart added, “COLI blocks are usually issued on dozens or even hundreds of lives and the period of ownership extends past the working life of the executives involved. Our session will examine some of the practical issues involved with carrier selection, along with the evaluation and funding of programs where carriers have altered the cost
April 03, 2019
Congratulations AALU on Doubling Membership
Earlier this month, the American Association of Life Underwriters (AALU) announced that by reaching a membership level of more than 4,000 entrepreneurial financial security professionals, the association has now doubled its membership. Many of the managing directors at Fulcrum Partners are members of AALU and we are proud to share AALU’s recent announcement. AALU Doubles Membership Washington, D.C. – AALU today announced that it has doubled the size of its membership of entrepreneurial financial security professionals. Now more than 4,000 members strong, this is the most significant membership development in AALU’s history. Accomplished through a new membership category, Enterprise Membership, this is a tremendous step forward in executing the new strategic plan developed by the AALU leadership team in collaboration with the organization’s Board of Directors. Enterprise membership is designed to engage every licensed professional and their supporting team members from every firm. M Financial is the first to adopt Enterprise Membership with AALU. “When we grow the number of engaged financial security professionals across the life insurance distribution community, we will create a stronger organization that can produce better public policy outcomes,” said AALU CEO Marc Cadin. “Today’s announcement is a key step toward ensuring the reputation of the profession better reflects
January 03, 2019
#ICYMI Understanding Top Hat Plans
Don’t Put Away Your New Year’s Eve Top Hat Just Yet! Over the past five-plus years of publishing Deferred Compensation News, (previously known as Fulcrum Partners News), no topic has ever attracted as many views or as much traffic as that of “Top Hat Plans.” In November 2018, the AALU Washington Report addressed some of the challenges and lack of clear guidance in identifying a company’s “top hat” group. Fulcrum Partners shared that information with its readers in a PDF suitable to download, print or read online. Because Top Hat Plans continue to raise discussion and cause confusion, we encourage you to download the report and then follow up with any member of the team at Fulcrum Partners should you have questions. As court cases have demonstrated, making sure you identify your top hat plans and appropriately limit eligibility in those plans can be important for avoiding significant litigation risk or ERISA (The Employee Retirement Income Security Act of 1974) fines. These three historic documents may also provide helpful insights: DOL Reiterates Its Stance on Top Hat Plans Electronic DOL Filing for Top Hat Plans to Be Mandatory “Top-Hat Plan” Exemption Compliance for Deferred Compensation Arrangements Securities offered through Valmark Securities,