Monthly Archives: January 2014

Income Account Value or Death Benefit? Now the choice is up to your client.


Looking for an income rider with a twist?

When presenting income riders to your clients, many carriers provide great guaranteed income values and withdrawal rates.

Unfortunately, if your client passed away, this income value was often forfeited. Leaving the beneficiaries with only the actual cash value of contract, which is often  significantly lower.

Great American Life has a unique income rider that can be added to their annuity contracts.

Offering an 8% Rollup on income or death benefit value for 12 years.

Issued to age 85!!

See attached for full info

income sustainer plus NJ brchr


EXCITING NEW SALES TOOLS – TFS & North American are making it easier to educate your clients about life insurance

Tomorrow's Financial Services, Inc.Are you looking for a way to start a conversation with your clients about life insurance? TFS & North American are excited to share with you a new sales tool to help you do just that. We have developed a series of professionally produced educational client approved videos that can help  your clients begin to understand the myriad of ways in which life insurance can help them better achieve their financial goals. You can download a copy of these videos from YouTube or simply send your clients links to view them on YouTube.

Click on the hyperlinks below to take a look at any of the covered topics, and feel free to forward on to your clients for their benefit to!!!

Annuity Maximization – The objective is to provide a greater death benefit for heirs using annuity assets. Gain insight into how this strategy works and how you can help build your sales.

Business Planning – Your business clients have unique life insurance needs. Let us help simplify your sales process with our powerful sales strategies covering Buy-Sell, Executive Bonus, & Key Person Insurance.

College Funding – A premature death and the rising costs of college tuition can be hard on a family. Help your clients gain financial protection and help pay for college with a college planning strategy.

Estate Planning – Life insurance death benefit proceeds can provide the liquidity needed to pay off debt, replace income, supplement retirement income, create an equitable inheritance between heirs, and even provide protection for businesses.

Legacy Building – Use permanent life insurance to offer death benefit protection along with an efficient way to pass along assets to beneficiaries. Learn how to put this strategy to work for you.

Pension Maximization – Find your sales potential in this large market niche. From teachers to state and local government employees, discover your next sales opportunity today.

Policy Review – Life insurance left untouched may no longer be meeting your clients’ needs. Position yourself as an important resource and put a periodic policy review practice in place today. Take advantage of the TFS CPR program to help make this process even easier for yourself.

Retirement Planning – Help your client protect what’s important now while giving them a way to enjoy financial freedom later. Help boost your sales today with this key strategy.

Smart Money – Smart money is money your clients want to control and be able to access during times of need. While there are several places to store smart money, one option to consider is life insurance. Learn how to help your client make their smart money even smarter!

Contact Steven Hipsher at the TFS Home Office for help on your next case!
732-758-9300 x165 or




Due to the inclement weather the TFS Home Office has sent our staff home early.  Email and Trades will continue to be monitored and busy will continue.  For emergency situations please contact the following Department Head, Steve Hipsher (Insurance) Cell #  1-732-912-1489 Tammy Case (Securities and Advisory) # 1-848-207-0052, Richard Widmer (Mortgage) # 1-908-705-1498 and Thomas P. Hyland # 1-732-245-0452.

Thank you for your patience and understanding.



2013 Fund Review – Buy/Hold Plus


As you are already aware, overall 2013 was an excellent year in the market.  The focus of this has been on the S&P 500, which gained over 32%.  However, as most individuals are not invested solely in the Large Cap Blend category, this can often be very misleading to their expectations for their own accounts.  A quick look at the other major broad indexes shows that the MSCI performed roughly 10% less than the S&P 500, and Barclays Aggregate over a whopping 34% less.  Not to mention many of the alternative, lower correlated categories such as Real Estate, Natural Resources, and Developing Markets, which also lagged this most public index.  It is therefore important to remind clients that, as with any well balanced and diversified portfolio, stabilized growth through limited volatility is the goal – not to outperform one broad Large Cap Blend Index.   Below you can find a detailed evaluation of how the Buy/Hold Plus funds performed compared to both broad and specific category indexes.

 Indexes Comparisons

The three major broad indexes are the S&P 500, MSCI EAFE, and Barclays US Aggregate Bond.  All domestic equity funds are compared to the S&P 500, international equity funds to the MSCI EAFE, and all fixed income funds to the Barclays US Aggregate Bond index.  This view however does not lend itself much to the three alternative categories used, as they are utilized specifically for their contrary movements to the major equity indexes.  It is therefore not surprising their performances were all subservient in this year of high major equity index returns.

Looking past the alternatives, out of the 8 domestic equity funds utilized, 7 beat the broad index of the S&P 500 – the sole fund performing below came in at a marginal 0.40% less.  Half of the 8 domestic funds also surpassed the broad index by over 5%; the highest at a 16.72% superior margin. Looking at the three large cap funds in particular that are most closely correlated to the S&P 500, the Laudus US Large Cap Growth Fund returned 5.40% above, the SunAmerica Focused Dividend Strategy W Fund returned 7.68% above, and the iShares Russell 1000 Value returned .30% below the broad index.

Internationally, both foreign funds surpassed the MSCI EAFE by at least 2.5%, with the greater of these just under 5% better.  Lastly for fixed income, four of the five surpassed the Barclays US Aggregate Bond index by at least 2.50%.

Overall, 13 of the 15 funds highly correlated to one of the three major broad indexes surpassed the associated index in 2013.

 When examining each of the 18 funds compared to their specific category index, 14 were able to outperform, with half of those outperforming by at least 5%.

 Overall we were very pleased with how our funds performed both compared to their specific category and broader indexes.  Because of the uncertainty in any particular asset class from one year to the next, a well balanced and diversified approach can add greater stability and limit volatility in your client’s progress towards their financial goals.

All performance numbers obtained through Morningstar Principia ending 12/31/2013

2013 Capital Gains Awareness

stockgainsAs there has been a five year run up in the market from 2008, many mutual funds are realizing more substantial capital gains than they have over the past few years.  This is particularly true of the more aggressive, domestic equity funds, with some choosing to realize double digits in capital gains for 2013.  While the majority of these are long term in nature, it is nonetheless an item to be aware of with tax season approaching for your clients.

This is true for some of the Buy/Hold Plus funds as well, particularly in the domestic growth categories.  However, none are close to double digits for realized capital gains, and most are moderate in nature of only a few percentages or less.  While no one enjoys paying tax on gains, you are in a great position to help clients remember that this results from a very successful run up in the market.  Additionally, most clients have the majority of their investments in tax-deferred or tax-free assets such as IRAs, Roth IRAs, 401(k)’s, etc. which these taxable events will not affect.

New Year….Higher Rates! Up to 3.8% guaranteed!

Effective January 2nd Midland National Annuity will be raising their fixed annuity rates significantly.Percent growth

For those clients sitting in low yielding CD’s and cash accounts, now is a great opportunity to discuss the advantages of guaranteed growth and tax deferral to start your fixed annuity production!


         LOW BAND          HIGH BAND ($200k+)

5 Yr  Rate        2.55%                    2.75%

7 Yr Rate         2.90%                    3.15%

8 Yr Rate         3.20%                    3.40%

10 Yr Rate       3.60%                    3.80%

Please contact TFS Insurance Agency for full details and State availability