S&P down grades five major life insurance companies to AA+ from AAA status

In what we can assume will be the first of several down grades for major life insurance companies in the structured settlement markets, S&P quickly down graded five premier life insurance companies yesterday from AAA to AA+.  The companies who were impacted by this are:

New York Life was dropped to a AA+

Northwestern Mutual Life Insurance was dropped to a AA+

USAA was dropped to a AA+.

Knights of Columbus was dropped to a AA+.

Teachers Insurance and Annuity. TIAA, was dropped to a AA+.

So what exactly does this mean and what are the implications for the life insurance industry and structured settlements in general? I address some of the concerns in this weeks video broadcast of Speaking of Settlements but in short the impact should be minimal other than to the pride of the companies listed above.

It is a sickening process in that each of those five firms went to great lengths over the last three years to do the things needed to retain a coveted AAA rating and in some cases make it a key element of their marketing campaigns, only to suffer this immediate down grade as a result of the fact that they hold a large portion of US government obligations precisely because they are so conservative and careful.

As I have been saying for years, our industry uses these ratings at our peril as the rating firms really could care less about the impact of their down grades on companies marketing and reputations and the idea of using S&P as a rating agency for life markets has been a bad idea for decades. I have always preferred AM Best as the best source of information on insurance company standards and solvency and they are not as reactive as the other firms.

Enjoy today’s video on the S&P down grade and it’s impact on the insurance and structured settlement profession, but it would be wise to stop using rating agency rankings as some sort of validation of safety and instead do your own research on markets and firm to match the right company to the right risk.

Wahlstrom Associates and Brook Hollow to co-host exclusive conference on taxable damage litigation and structured legal fees

Thats the headline of this unique little conference Wahlstrom & Associates will be hosting, along with our friends at Brook Hollow Financial, on the sleeping giant of taxable damages litigation and settlement strategies.

Lets face it, how many settlement professionals and trial lawyers are tired of the same, old, dry, boring and pointless seminars that promise much and deliver little? Even more so they  are tired of having their time and money wasted, as well as going to hotels so big  they never get a chance to network with the people they went to meet. Plus, who wouldn't want to have some fun, get some sunshine, enjoy themselves and really learn how to launch  their professional practice into a powerful new area filled with amazing potential?

The area of taxable damage litigation, coupled with the topic of showing trial lawyers and their advisors how to structure their legal fees, is the sleeping giant in litigation and professional practice. In fact it is estimated the taxable damage litigation market dwarfs the non-taxable, personal injury market, yet only a tiny fraction of lawyers and settlement experts make any effort to understand it and learn how to work in this important arena.

That said, then I think it is clear that it is time for lawyers and settlement professinals alike to take a break from the usual and come to Scottsdale, Arizona on April 12th and 13th and join us for an exclusive, limited attendance event held at the hip, mid-century modern Hotel Valley Ho.

The two day meeting will allow attorneys to receive up to 8 hours of CLE  and financial professionals up to 10 hours of CE credit, all while networking with and learning from top professionals, staying at a 5 star  boutique hotel and even, do we dare say it, attending a cocktail party at the classic Trader Vic's, all for far less then you would pay for your standard Gulag type convention and meeting elsewhere. Meeting people face to face, having fun, learning something that puts rocket fuel in your practice, all at prices that don't make you weep when the credit card bill arrives; what could be more old school than that?

As I mentioned, the hosts for this event will be Wahlstrom & Associates, the nations leading experts in managing taxable damage litigation, and Brook Hollow Financial, the industry innovators in structured legal fees and sophisticated solutions for trial lawyer financial strategies. Together they we will be bringing the top legal, tax, trial and management experts from around the country to discuss the amazing practice building opportunities for trial lawyers, as well as the settlement and tax experts that work with them,. We intend to cover the areas of taxable damage litigation such as employment law, discrimination cases, wrongful imprisonment, environmental claims, property loss on the Gulf Coast and Qui Tam/Whistleblower cases.

However, more than just a conference on what this area of law is all about, we will also have segments designed to show lawyers how to start KEEPING the money and fees you make through the use of structured legal fees. I mean what lawyer wouldn't  like to learn how to make fully taxable fees either be taxed at lower rates, or even some cases, tax deductible using conservative, insured strategies offered by the largest financial providers in the US?

Featured speakers and topic areas include:

"The tax and legal foundation for taxable damage cases and claims",presented by the man who literally wrote the book, Attorney Robert Wood.

"Employment, discrimination and wrongful termination litigation", presented by the NYC powerhouse firm of Outten and Golden.

"Environmental and contamination cases", presented by the Civil Action Attorney, Jan Schlichtmann.

"A timely insiders look at the Gulf Coast claims process and litigation ",presented by Frederick T. "Rick" Kuykendall III of the Murphy Law Firm.

"How to structure a legal fee on a taxable damage case and build a financially strong practice", presented by Brook Hollow Financial of Chicago, IL, one of the nations leaders in innovative solutions for trial lawyers.

"Managing a multi-claimant case using 468B trusts and protecting the rights of your clients", presented by Mark Wahlstrom, President of Wahlstrom Associates, experts in taxable damage litigation management.

"Using new media to build, promote and grow your practice", presented by Scott Drake, host and producer for The Legal Broadcast Network.

"Allstate Financial, Dan Durbin, Senior Manager of Allstate Structured Settlements, speaking on the types of non-qualified annuity cases Allstate will accept and the expansion into additional areas such as celebrity endorsement fees."

" What happens when you need to liquidate or unwind a taxable case" presented by Attorney Matt Bracy of Settlement Capital.

Plus many more speakers from companies such as Kenmare Assignment Company,  First Capital, Liberty Mutual, Synergy Settlement Services, Sequence Media Group and others.

Again, attendance is going to be VERY LIMITED and the room block at Hotel Valley Ho is tight as well. So register now and then CLICK HERE TO RESERVE YOUR ROOM AT HOTEL VALLEY HO and be sure to ask for your convention rate as part of the Wahlstrom Associates/Brook Hollow event.

CLICK HERE TO GO TO THE EVENT PAGE BLOG AND TO SEE THE FULL AGENDA  and watch for updates on speakers, room blocks and when we are sold out. This will be the first conference of its kind in over 10 years and you need to be there.

"Please note this event is designed for trial lawyers, tax accountants, CPA's, primary market structured settlement professionals and invited speakers. Given the very limited size of this event we reserve the right to limit attendance to those who actively work in those professions and or those companies whose business model does not conflict with or compete with those of the event sponsors. If you have a question regarding the suitability for attendance please contact us by email and check with us prior to registration."



Social media compliance fears inhibit financial advisors adoption of technology

Brokerage firms and settlement planners continue to talk a good game when it comes to social media, but few are actually doing anything about it, and that may turn out to be a mistake, this according to recent surveys of major brokerage and financial planning firms.

According to a report by Corporate Insight, almost all full-service brokerage firms expect the quality and content of social media outreach to improve, but James McGovern, the firm’s vice president of consulting services in New York, says few are willing to make the first move.

“There’s a lot of intent,” he says, citing 2008 data. “But there hasn’t been much by way of an embrace.”

Ironically, mutual funds, which were by far the most conservative of the financial services firms when it came to social media two years ago, have picked up the ball and run with it. Vanguard, for instance, has a corporate blog through which is offers commentary on various subjects and it has its own Facebook page.

This video, first broadcast on Annuity News Now, features Mark Wahlstrom, Chairman of Sequence Media Group, and a 30 veteran of the insurance and financial advisory world. He comments on the article and draws some conclusions about issues facing financial planners and registered reps and offers some insight on how advisors can get ahead of the game by working closely with their compliance departments.





Unqualifying "qualified" structured settlements

In this weeks edition of Speaking of Settlements I am joined by Attorney Robert Wood of the firm of Wood & Porter, PC in San Francisco, CA. Attorney Rob Wood

Rob recently published in Tax Notes an article entitled Unqualifying Qualified Structured Settlements, which despite it's somewhat provocative title, ( At least it is provocative to us in the settlement profession ) is one of the single best written explanations of how qualified assignments work in structured settlements, as well as a complete look at the use of non-qualified assignments in other areas of settlements.

As you will note in this video, as well as the article, Rob agrees with me that the entire topic of structured legal fees and the use of qualified assignment companies and vehicles, seems to get glossed over in the big tax and compliance picture, when it would seem that for a variety of reasons that a non-qualified assignment for structured legal fees is possibly the safest way to proceed.

Regardless of your position or understanding of how these work, this commentary and the written material along with it will do an excellent job of bringing you up to speed on how qualified assignments work, when non-qualified assignments should be used and potential traps or issues in matching which one's are best for your clients.

Enjoy this weeks edition of Speaking of Settlements and watch for an expanded and improved look on The Settlement Channel over the next 2 to 3 weeks as we once again upgrade our offerings for our readers and viewers.