CD Type Annuities » Registered

Can a Registered Investment Adviser (RIA) in good faith receive compensation on insurance sales & loaded funds

Editor — Mon, 26 Apr 2010 07:36:58 +0000

How might an RIA, who must act with fiduciary obligation, rationalize compensation for insurance or annuity sales (those products sold as investment vehicles such a VUL policy), when there is compensation for making the sale. Even if the product is objectively in the best interest of the client, doesn’t the commission structure, which has the appearance of impropriety, create a conflict of interest for the RIA?

Also, if the RIA is recommending funds that carry 12B-1 fees, doesn’t this create a similar conflict of interest, even if the fund is the best of the lot (hypothetically)?

Perhaps the ultimate question is whether an Register Adviser must limit their compensation to a certain type, such as a fee base (percent of assets under mgmt), or performance base (% of gain in the portfolio)?

Broker/dealers – Going Independent – Registered Reps.

Editor — Wed, 09 Dec 2009 01:29:37 +0000

Broker/Dealers – Brokerwebstation has an array of investment products for asset allocation… and they’re ALL APPROVED by the regulatory bodies. Among the offerings: equities, options, ETFs, mutual…

Personal Finance and Money Management 33 – Characteristics of Non Registered Annuity

Editor — Tue, 15 Sep 2009 19:33:35 +0000

As we mentioned in other articles, the government only represents about 30% of our retirement income,, the company retirement pension plan offers another 30 % and many of us do not have one. It is up to individuals to invest wisely short and long term in order to make up for the short fall if he or she would like to live comfortably after retirement without giving up some retirement plan. Now you have reached your retirement age, there are some important investment options for your RRSP or 401k plan. In this article, we will discuss characteristics of non registered annuity.
An annuity is non-registered when it is purchased with funds from money other than registered plan. Payments made under a non-registered annuity contain your principal and earned interest. Only the interest portion is taxable each year.

1. Non-registered fixed term annuity
Annuity payments are fixed for the term of the plan and cannot be changed. The payment amount is determined by the interest rate for the term and the term chosen, if term is long than payment will be small, on other hand if the term is short than the payment will be large. Each payment includes principal and interest and only the interest portion of the payment is taxable for the year of receipt.

2. Non prescribe annuity
The taxable interest portion of a non-prescribed annuity decreases annually. Therefore, taxes paid are higher during the first few years, gradually decreasing to zero over time.

3. Prescribe annuity
Payments contain capital and interest income in a ratio that can not be changed and the tax payable is spread out evenly over the entire duration of the contract.

I hope this information will help. If you need more information or insurance advices, please follow my article series of the above subject at my home page at:
http://medicaladvisorjournals.blogspot.com
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://personalfinance33.blogspot.com/