Premium Financing and Life Settlements
February 22, 2008 by RickBryan
Hardly a week goes by without a cold call coming in from a rep marketing their premium financing and/or life settlement opportunities. It’s interesting to hear how each explains their business; usually they don’t bother asking if I already know what premium financing is all about. I’ve setup a separate page to start collecting more information on this activity. http://www.assetprotectionbook.com/premium_financing.htm Jay Adkisson’s website, always a source of well written information on industry topics, has an easy-to-read explanation of what premium financing is all about. Anyway, it seems there’s so much money to be made in the premium financing and life settlement business that the reps travel all over the US to make deals. I’m trying to figure out who the major players are in Manhattan. NAF Funding seems to be a player. http://www.naffunding.com/ Apparently they do life settlements and not premium financing deals, but of course all their reps will have friends in the business. I meet with everyone (more or less), because they’re a good source of client referrals for my estate planning practice.
What I find most interesting is how the development of Stranger Owned Life Insurance (STOLI) has (perhaps) backfired on the insurance industry. In other words, as Key Man life insurance from the 1950′s and 1960′s morphed into Corporate Owned Life Insurance (COLI) in the 1970′s and 1980′s on the lives of the ‘middle-top’ tier of executives; and then became the Winn Dixie COLI deals . . . these non-traditional uses of life insurance were all developed and marketed by the life insurance industry. And of course, it was the top life insurance and executives who first developed Stranger Owned Life Insurance (who else?). So now it seems to have gotten out of control with hedge funds and pension funds and private investors and foreign money all vying for a piece of those enormous life insurance company reserves. It will take a few years for the industry to get their legislation introduced and passed in the states which matter (New York, Florida, Texas, Ohio, New Jersey, California, etc.); but in the meantime industry efforts to stop STOLI have only partially been effective. What’s more, it appears some of the voiciferous companies lobbying against STOLI on the one hand are actually allowing their top producers to write these policies and accepting huge premium dollars. Talking out of both sides of your mouth; good to see capitalism is alive and well in America.
New York City Solosez Annual Dinner
February 9, 2008 by RickBryan
Last week our friend Lisa Solomon arranged a dinner in Manhattan for the attorneys who participate in the online Solosez attorneys’ discussion forum hosted by the American Bar Association. I’d say there were two dozen lawyers and a few non-lawyers in attendance; some good networking was accomplished, and it was a really fun evening. One of the many challenges of working as a solo practitioner is building relationships and camaraderie with other attorneys, and gatherings like the Solosez dinner really help in that regard. Bar association meetings are helpful too, but dinner and drinks (perhaps especially the drinks part) seem to make it all come together.Here’s the link to the Facebook photos.
Lennox Advisors
February 4, 2008 by RickBryan
An interesting organization which I’ve recently become familiar with is Lennox Advisors, a full service financial planning and investment advisory firm. Their website and marketing are top-shelf, so there’s obviously a lot of money being generated out of this organization. They’re affiliated with National Financial Partners, some type of umbrella organization of ‘independent’ financial planning firms. Lennox is somehow affiliated with Howard Cowan’s MassMutual agency (which is why I put independent in quotations), as these two organizations occupy adjacent floors at 530 Fifth Avenue. An important issue throughout the financial services industry is separating the BS from the reality. I can’t for certain weigh in on whether Lennox delivers on what they claim. I’ll keep you posted.
FPA New York Chapter Annual Meeting
February 2, 2008 by RickBryan
This past Wednesday (Jan. 31, 2008) I attended the annual dinner of the New York Chapter of the Financial Planning Association (www.fpany.com). I was told 120 people had pre-registered for the event, but 150 showed up. It was crowed; really crowded, and there was a lot of positive energy and good-will among the attendees. It was held at Utsav, an upscale restaurant on 6th and 46th specializing in Indian cuisine. Financial Planners, insurance agents, investment brokers, attorneys, etc.; all of the professions whom you would think might attend an annual dinner of the Financial Planning Association were there. It was an excellent networking opportunity for me, and just as importantly, a chance to get reacquainted on a personal level with many of the financial services professionals I’ve met over the years.
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