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...al fund encompasses much more than just one type of investment. A mutual fund...' or 'no-load.' The low-load fund will usually have a sales charge of 2% to 4%...

... undertaking but in today's tumultuous economy, it sometimes seems like an imp...isks. If your employer does go out of business, the Pension Benefit Guaranty C...

...change, the reconfiguration of the business landscape, and globalization, U.S....and you'll enjoy a steady flow of new business.

... - Content Package Categories Popular Recent All Back Overcoming Short-Term Thinking: Developing a Pipeline Mentality 2/26/2018 12:00:00 AM by CompleteMarkets Editor , John Graham This content has not been rated yet. Though faced with the realities of dramatic economic change, the reconfiguration of the business landscape, and globalization, U.S. companies continue to go down the wrong path. Former U.S. Treasury Department official Michael Jacobs calls it "business myopia." It may be argued that "enhancing shareholder value" drives the myopic vision of publicly-traded companies, but "shareholder demand" is perhaps more accurate. In privately held companies, myopic thinking results from a desire to increase market share or simply beat last month's figures. What's wrong with enhancing shareholder value and increasing sales? Both are valid ... with your company is to allow them to discover the depths of your experience and the extent of your knowledge. This is the added value that makes a significant difference. Find ways to help customers to be more successful. If the partnering concept has any value, it's in helping prospects and customers meet business challenges. Just selling them the right product or service isn't nearly enough to build a lasting bond. Almost any vendor can do that. Going beyond the expected is today's challenge. A supplier of bakery mixes and fillings discovered that its customers needed help in developing marketing strategies and tactics for retailing their products. At that point, management realized that superior, innovative products were not enough; their customers were looking to them for ways to sell more. Meeting this need led to selling more ...

...ason is that buyers and sellers are using “average agency value” or “fair mar...nd goals regardless of the price. CONCLUSION Buying, selling, or merging an agency is a huge undertaking. Usually, the goal is to make a profit, ...

... of money saved. If the prospects don't have the lump sum, there's no use explaining the benefits of the policy to them. But again, be sure they realize that this sum may be generated by cashing in their present Life policies. Standard-vehicle investors: Over $1 trillion is invested right now in standard vehicles such as Certificates of Deposit, passbook savings accounts, money market accounts, and treasury bills. About 75% of your clients and prospects have one of these investments. Municipal bond holders: A substantial number of your clients and prospects invest in municipal bonds-the municipal bond market amounted to $97 billion in 1986. What are the drawbacks? The rate of return is locked in for five to 30 years. The bond may decline in market value and the interest must be reinvested ... company have the ability to raise additional capital to fund growth or meet contingencies? Accurate Matching of Assets and Liabilities: The investments made by the carriers you choose should correspond to the length of time the average client invests in the product. Investments in common stock or other non-fixed income investments is a major mismatching (in most cases) of Single-Premium Whole Life liability with the assets backing it. Longer-term bonds have substantial interest rate risk. A rising interest rate environment is especially dangerous to long-duration bond portfolios because depressed bond values make the bonds very illiquid just at the time when cash outflows may be highest. Investment Guidelines: It's up to you to judge the viability of a company's investment philosophy as defined in its investment guidelines. Consider risk in the light of available margins to meet contingencies. Forward ...

...-deferred interest for investors, plus Life insurance. In some cases, interest...-Premium Whole Life policy with the bonus then, although there is tax on the bonus, the cash value of the policy will g...

... existing portfolio with lower average earnings from investments made in calmer times. The difference can be dramatic. Imagine having $10 million of premium income to invest with two possibilities: a new portfolio of policies and no existing investment pool backing those new policies, and an existing block of business with an average return of bonds (some dating back to the 1940s) of 6% . With U.S. Treasury Bonds yielding 14% in the early 80s, that $10 million would generate a pure 14% return each year for the next 30 years. True, the older portfolio of bonds would have an incremental increase in yield due to the new $10 million receiving new money' returns, but the portfolio rate couldn't jump immediately to the 14% level. In this environment, Universal Life ... portfolio consisting of mostly new money' would perform better than money simply blended into an existing portfolio with lower average earnings from investments made in calmer times. The difference can be dramatic. Imagine having $10 million of premium income to invest with two possibilities: a new portfolio of policies and no existing investment pool backing those new policies, and an existing block of business with an average return of bonds (some dating back to the 1940s) of 6% . With U.S. Treasury Bonds yielding 14% in the early 80s, that $10 million would generate a pure 14% return each year for the next 30 years. True, the older portfolio of bonds would have an incremental increase in yield due to the new $10 million receiving new money' returns, but the portfolio ...

...ER INSURANCE AGENCY, INC., a Massachusetts corporation having a principal place of business in Boston, Massachusetts, hereinafter referred to as the "Bu...3(ee) Agency Agreements 3(ff) Agency Customers 3(gg) Bank Accounts and Safe ...

... , the lower the P/E ratio. 2. Capitalization Rate Model The capitalization method is more accurate because more public information is available. The capitalization rate is similar to the return on investment (ROI) that an investor would demand if buying the agency. It consists of the risk-free rate and the risk rate for independent insurance agencies. The risk-free rate is the rate on U.S. Government Treasury Bonds of proper duration. Currently, the risk-free rate is approximately 6.3%; for independent insurance agencies, it's usually another 9 to 19 points, for a total capitalization rate of 15% to 25% . Divide the pro forma cash flows by the capitalization rate to calculate the agency's value. The riskier the agency, the higher the capitalization rate. 3. Discounted Cash Flow (DCF ... The DCF method is the third and best method. In fact, for buyers, it's the only method to use because it allows using different pro forma cash flows each year. For instance, in Year One, the pro forma cash flow might be $200,000, but in Year Two it could be $250,000. As we all know, cash flows vary from year to year, and it's important to use a valuation method that acknowledges this. Also, DCF is the only method that totally captures the time value of money. With these two advantages, it's by far the more accurate method. The drawback is its complexity. I'd recommend using a financial calculator or spreadsheet such as Lotus or Excel for this kind of calculation. Many people calculate the agency's book ...