MoneyGuide Pro 2021 Update

MoneyGuide Pro, (MGP) will be updating the software to include several 2021 contribution, Estate, Social Security and Tax updates.  These updates should occur on or around January 1, 2021.  

If you an IAR and not already using MGP, but would like to learn more about comprehensive financial planning and the opportunities it may provide, please contact ESI Business Development.

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Holiday Hours

The ESI phones will be shutting down at 4pm on Thursday December 31st and ESI will be closed Friday, January 1st in observance of the New Year holiday. We will resume regular business hours Monday, January 4th.

FINRA CRD CLOSES FOR THE YEAR 1PM EST DECEMBER 24th

CRD shuts down for 2020 on December 24, 2020 at 1pm (EST) for year-end reconciliation.  Termination requests for either state or Representatives, must be received no later than December 18, 2020 to allow for processing prior to CRD’s shut down.  Any requests received after CRD shuts down will not take effect until after January 4, 2021, and any renewal fees paid will not be refunded.

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Solving for Your Clients’ Income Needs

The Touchstone Income Strategy powered by ESI Illuminations is a managed portfolio of a combination of Touchstone Funds that are allocated to generate income through a total return approach rather than strictly dividend income. The Strategy uses a combination of cash equivalents, fixed income, balanced and equity funds which seek to sustain a 5 percent withdrawal rate over a 20-year period.*

Visit ESI Illuminations platform tab to view all of the Strategist materials – including the Touchstone Income Strategy and how it can help your clients.

*As with any investment Strategy, the Touchstone Income Strategy involves risk, and there is the possibility of loss of principal value. There is no guaranteed element of the Strategy.

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Year End Reminders

BROKERAGE OPERATIONS – IMPORTANT DATES

Dec. 31, 2020
Fidelity Clearing & Custody Fee Processing and Balance Reminders
In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2020 or have a $10,000 balance in the core money market fund on December 31, 2020.

Last trade date for 2020 regular way settlement is December 29, 2020.

Dec. 30, 2020
IRA Distributions

December 30, 2020 is the last day an EFT can be sent out of an IRA account as a 2020 distribution.  Any EFT distribution entered on December 31, 2020 will be deleted and added as a check to the address of record. 

Dec. 31, 2020 & Jan. 2, 2021
Fidelity Clearing & Custody

“Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2020 and, if eligible, are charged the fee on January 2, 2021.

Jan. 11-31, 2021    
Securities Liquidations to cover Unpaid Fee Postings

ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades.


Questions? Give us a ring! 1 (800) 344-7437

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Resources for the New Year: Tax-Conscious Investing

Quick Sales Idea
The Investment Evolution campaign asks the simple question, “Has your investment strategy kept up with your life?”. Tax-conscious investing is a great topic to use as follow up to this campaign, especially considering our current uncertain tax environment. 


Resources and Knowledge Builders
From Russell Investments

  • Do your client portfolios carry hidden baggage?
    “After ten years on the road, I finally bought a new piece of luggage and discovered that my act of consumerism and client portfolios have a lot in common. Have I piqued your interest?” Click here to read more.

From Morningstar Managed Portfolios:

  • Staying the Course Versus Timing the Market
    “Stay the course” is a nautical phrase that has been popularized by world leaders, primarily in the context of battle. According to Stewart Alsop’s 1973 memoirs of a conversation with Winston Churchill, the British prime minister contemplated toward the end of World War II: “America, it is a great and strong country, like a workhorse pulling the rest of the world out of despond and despair. But will it stay the course?” Click here for the full article.

Tax Conscious Investing Prospecting Resources


If you are interested in using the tax-conscious investing concept as a prospecting tool, here are some resources you can utilize.

Prospecting Emails
Available on the Prospecting Emails section of the National Life agent portal, the following prospecting emails are available:

 
Social Media
You’ll find social posts under the tagline “Taxes” in the Hearsay Content Library.

Strategist Resources
There are currently 10 Third Party Money Managers who offer Tax-Conscious/Tax-Managed portfolios. Many of them provide marketing materials around the concept of tax efficiency. Contact them directly or access marketing materials directly through the ESI Illuminations site.
Tax-Conscious Mutual Fund Managers

  • American Funds
  • Brinker Capital
  • Morningstar
  • Russell
  • Envestnet PMC

ETF Managers

  • BlackRock
  • Vanguard
  • Envestnet PMC
  • Symmetry
  • CLS
  • Morningstar
  • 3D

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Want to avoid a Beneficiary Headache? There’s a report for that.

There are numerous reports available in Wealthscape that can help manage operational aspects of your practice. This week, we will highlight the “Account Beneficiary Report” and how it could be used to assist in avoiding a Beneficiary Headache!

Over the summer (which seems like a really, really long time ago), I worked with an Administrative Assistant to resolve a terribly problematic beneficiary issue. The owner of a sizable account passed away with a trust designated as a beneficiary on her Individual Transfer on Death (TOD) Account. Unfortunately the beneficiary information had not been reviewed with the client, and it was determined that the Trust listed as beneficiary was invalid and was not consistent with the client’s estate-planning wishes. It was later determined that this Trust never existed and had been set up in error by the client and her attorney nearly 10 years ago.

Due to the incorrect Beneficiary Designation, the client’s Estate had to petition the court for guidance on how this asset was to be treated. The process was extremely cumbersome and caused substantial delays in reallocating this asset within an investment strategy proposed by the current advisors.

The “Account Beneficiary Report”, available in Wealthscape Reporting, can be used to mitigate these unforeseen “headaches”. The report can be generated to quickly review current beneficiary elections ahead of a periodic review or client phone call. Additionally, accounts with a Beneficiary Status of “in transit, invalid, or rejected” are considered NIGO and most likely would prohibit assets from being moved to those beneficiaries as the client may have wished. Accounts with this status may require resubmission of a Beneficiary form.

Accounts with a Beneficiary Status of “N/A” do not current contain a designation. A phone call to a client to discuss the lack of a beneficiary record on their accounts may be a good conversation-starter to identify potential sales opportunities.

Need assistance with running Wealthscape Reports? Please contact the service desk at 1-800-344-7437.

– Abram Nunes, Director of Brokerage Operations

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We’ve Updated our ESI Illuminations Investor Profile Questionnaire!

The ESI Illuminations Investor Profile Questionnaire has been updated so that it is now available in multiple formats.

When ordering through Merrill (catalog number 48899), you can now choose print format, pdf format (for printing at your office), or a fillable pdf format.  Both the print and fillable pdf version are also available on the Illuminations site on the Platform tab under ESI Marketing Materials.

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Some News from Transamerica

Transamerica
At Aegon and Transamerica, we take pride in our mission of helping customers achieve a lifetime of financial security. This is an ambition to which we strive, recognizing it may come with challenges and require continued transformation. Today, during Aegon’s Capital Markets Day, we acknowledged the need for change within our organization, and we are pleased to share a bold new vision that will integrate new ways of thinking, modernize our operations, and realign our product investment to improve our agents and customers’ experience and financial outcomes.
Our strategic plan involves making a significant investment in our life insurance business with the goal of becoming a top tier provider in the term, whole, and indexed universal life insurance segments. The investment will support expanding our product set, evolving our infrastructure, and realigning our strategic priorities to deliver a more valuable experience for all of our customers. In addition, it will allow us to more effectively deliver on the commitments we make to you, all while operating more efficiently.
We look forward to sharing the details about our expanded investments and new product availability over the coming months.
This is a significant milestone for our organization. We want to thank you for your continued trust and confidence in Transamerica. With your support, we have built a remarkable company, and we believe together the future has never been brighter.
Sincerely,
Joseph S. Boan
Transamerica
Senior Vice President
Senior Managing Director Individual Markets
To view Aegon’s Capital Markets Day materials and press release, click here.

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