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JOHN HUGGARD
VARIABLE ANNUITIES SPEAKER
John Huggard is an Alumni Distinguished Professor at North Carolina State University where he his research projects deal with variable annuities. In addition to teaching, John is the senior member of a Raleigh, North Carolina law firm that was founded in 1975. He is a board certified specialist in estate planning and probate law and limits his practice to consultation in the areas of estate planning and financial litigation. John is the author of several financial magazine articles and books. His most recent book is “Investing With Variable Annuities: Fifty Reasons why Variable Annuities may be better Long-Term Investments than Mutual Funds.” John regularly lectures to professional groups on topics dealing with probate issues, investment taxation and financial planning, and has been extensively interviewed and quoted in The Wall Street Journal, Smart Money, USA Today and other financial publications. John received his undergraduate degree and law degree from the University of North Carolina at Chapel Hill and his master’s degree from Duke University.
UNDERSTANDING THE NEW VARIABLE ANNUITY LIVING BENEFIT RIDERS
This lecture discusses, generically, the new living benefit riders available to clients. This is a “plain English” lecture designed to provide attendees with a solid understanding of the basics of living benefits. Each living benefit is examined in light of who is the best candidate for the benefit. Practical examples are give of each benefit to show how they can help specific clients. Objections to living benefits (i.e., costs, etc.) are discussed and attendees are shown how to honestly and simply counter these objections.
VARIABLE ANNUITIES AND MUTUAL FUNDS: DISPELLING THE MYTHS AND MISCONCEPTIONS SURROUNDING VARIABLE ANNUITIES AND MUTUAL FUNDS
This lecture examines several myths and misconceptions regarding mutual funds and variable annuities. This is a 90 minutes lecture. Factual data is provided for distribution to attendees that dispells these myths and misconceptions. Attendees will learn that when mutual funds and variable annuities are fairly compared, the variable annuity often proves to be the better long-term investment. A partial list of the myths examined in this lecture include:
• The myth that mutual funds owners are taxed at a maximum of 15% if they hold their mutual funds for more than a year. • The myth that variable annuity owners in a 25% tax bracket pay 25% on withdrawals from their variable annuities. • The myth that variable annuities do not have a stepped-up basis. • The myth that mutual funds are cheaper to own than variable annuities. • The myth that variable annuities are always subject to both death and income taxes when the owner dies.
VARIABLE ANNUITY SALES TECHNIQUES OF MULTIMILLION DOLLAR PRODUCERS
This lecture explores a series of sales techniques used by the country’s top variable annuity producers. Sales techniques selected for this lecture do not require a significant expenditure of time or money. All of the sales techniques discussed are used by producers who typically sell over twenty-five million dollars worth of variable annuities annually. An example of two such techniques are:
• How to strip a qualified or non-qualified variable annuity of all potential estate, gift and income taxes. • How to transfer money held in a qualified or non-qualified variable annuity to a tax-free investment without having to pay income taxes.
Once the variable annuity has been completely transferred to the tax-free investment the tax-free investment can be liquidated without income taxes. The end result is that a client can own a variable annuity, let it grow and avoid all income taxes on the annuity’s growth.
• How to show potential clients that variable annuities are often the best long-term investment among all available investments.
At the completion of this lecture attendees should have several new ways to increase variable annuity sales. This lecture can be modified to run from 90 minutes to 2 hours.
DO VARIABLE ANNUITIES BELONG IN QUALIFIED PLANS? A LAWYERS VIEW
There is a great deal of confusion surrounding the issue of whether variable annuities belong in qualified plans (IRAs, 401(k)s, 403(b)s, etc.). This lecture examines the three major arguments advanced for not putting variable annuities in qualified plans and concludes that none of these arguments has any merit or validity. Next, Notice to Members 99-35, which is the NASD Notice that regulates this area, is explored in detail. This notice informs financial professionals as to when it is appropriate and when it is not appropriate to put a variable annuity into a qualified plan. A two page disclosure statement is provided that ensures compliance with directives issued by regulators. This is a 60 minute lecture.
HOW TO RESPOND TO THE TEN MOST COMMON UNFOUNDED OBJECTIONS TO VARIABLE ANNUITY OWNERSHIP
Investors typically raise several objections to purchasing variable annuities. This lecture shows how these objections can be overcome by demonstrating:
• Variable annuities cost less to own than mutual funds. • Variable annuities are more tax efficient than mutual funds. • Variable annuities have benefits at death that provide as much or more than the step-up in basis mutual funds receive. • The commissions on variable annuities are lower than other products. • Variable annuities can be stripped of both death and income taxes. • Surrender fees and IRS penalties impose on variable annuities are easy to avoid.
This lecture shows financial representatives how to honestly and simply overcome unfounded objections raised by clients who are considering the purchase of a variable annuity. This lecture requires 90 minutes to present.
THE TRUTH ABOUT VARIABLE ANNUITIES: FACT VS. FICTION
This lecture discusses the 15 most common myths regarding variable annuities and shows what the truth is and provides resource materials for attendees who want to examine any myth in more detail. A sampling of the myths discussed include:
• The myth that the annual cost of owning the average variable annuity is more than owning a similar mutual fund • The myth that annual capital gains taxes on mutual fund distributions are capped at a minimum 15% under current tax law. • The myth that paying ordinary income taxes on withdrawals of variable annuity gains make them less attractive investments than mutual funds. • The myth that the step-up in basis is a benefit mutual funds provide that variable annuities do not. Because of this, variable annuities make poor wealth transfer vehicles. • The myth that variable annuities, over the long-term, do not perform as well as stocks and mutual funds. • The myth that variable annuities are just as risky as other investments and are really nothing more than tax-deferred mutual funds.
HOW TOP VARIABLE ANNUITY PRODUCERS PROTECT THEMSELVES FROM CLIENT COMPLAINTS AND POTENTIAL LITIGATION
This lecture discusses the potential malpractice traps that financial professional may be setting that may result in litigation when the next stock market correction occurs. Some topics addressed include:
• Not understanding the tax aspects of mutual fund and variable annuity investing. • Incorrectly disclosing investment costs. • Failure to understand the impact of living benefits. • Incorrectly explaining the step-up in basis rules to clients. • Not being aware of pending legislation affecting mutual funds, variable annuities, stocks, etc. • Failing to inform clients of techniques that can help them (or their estate) avoid large tax bills. • Not understanding the new creditor protection rules for retirement accounts.
ESTATE AND RETIREMENT PLANNING: VARIABLE ANNUITY ISSUES FOR CPAs, ATTORNEYS AND FINANCIAL PROFESSIONALS
This lecture is designed to help attorneys, CPAs and other financial professionals understand the benefits of variable annuities. It also dispels many of the misconceptions attorneys and CPAs have concerning variable annuities.
John Huggard also designs one or two day sessions using combinations of his topics. Please contact us for further details.
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JOHN’S INFO
PROGRAMS/TOPICS
- UNDERSTANDING THE NEW VARIABLE ANNUITY LIVING BENEFIT RIDERS
- VARIABLE ANNUITIES AND MUTUAL FUNDS: DISPELLING THE MYTHS AND MISCONCEPTIONS SURROUNDING
VARIABLE ANNUITIES AND MUTUAL FUNDS - VARIABLE ANNUITY SALES TECHNIQUES OF MULTIMILLION DOLLAR PRO
