Friday, December 31, 2010

The Globe and Mail recently published an investigative report entitled "Through Canada’s Insurance Loophole" (Saturday, December 18, 2010)

The Globe and Mail recently published an investigative report entitled "Through Canada’s Insurance Loophole" (Saturday, December 18, 2010), on the role of the Managing General Agency or MGA in the distribution of insurance products.

The
article goes into great detail on the growth of MGAs and the lack of regulation of this distribution channel.

I was made aware of the article in an email from both Advocis’ Chair and President/CEO.


I am posting my response to them on this blog.


“It has been a long time coming but the opportunity to raise the bar is now here. The conflict in the advisor's role as a professional is exacerbated by the ongoing 30 year disconnect between the insurance companies' 'manufacturer', 'wholesaler', 'retailer' distribution model and the Advocis Professional Practitioner model of service to the consumer. The MGA is a 'wholesaler' and the Financial Advisor is a professional practitioner in the current independent channel. The confusion faced by the consumer is "What is it that I am purchasing? A commodity or professional advice or both?" The insurance industry markets commodities. We market solutions (Rx's) premised on a professional diagnosis. If we are advocates for the consumer it is time for us to ensure that the consumer understands that they have a choice - work with a commodity sales channel or work with a professionally designated practitioner. Until we make this distinction clear to the public they will continue to be at risk. We have an opportunity to bring closure to this longtime dichotomy”.

Dan Zwicker

Daniel H. Zwicker, Principal
B.Sc. (Hons.) P.Eng. CFP CLU CH.F.C. CFSB
Certified Financial Planner
Chartered Life Underwriter
Chartered Financial Consultant
Chartered Financial Services Broker
Professional Engineers Ontario

Bus: 416-726-2427
Email: ffcg@rogers.com
First Financial Consulting Group, Blog: http://dan-zwicker.blogspot.com/
Linkedin: http://www.linkedin.com/in/danzwicker
Beyond Risk, Blog: http://www.beyondrisk.blogspot.com/
Daniel H. Zwicker, CFP Blog: http://dzwicker.blogspot.com/

first financial consulting group
4261 Highway Seven
Suite 238
Markham, Ontario L3R 9W6

Investor Consultants
Capital Risk Management

Specialists in Advanced Life Insurance Applications, Retirement and Estate Planning Solutions

COMMENT

"HOW AN INDUSTRY OUTGREW ITS REGULATORS"
December 24, 2010

From: "Jim Rogers"
To:
dmullins@cogeco.ca
CC:
danzwicker@rogers.com

Dennis...appreciated--and agree with--your posting earlier today on 'For Advisors Only'.
Here's my letter to the G+M which they published last Monday, following the publication of the first article.
Cheers.
(PS see Dan Zwicker's comments...which I also think are 'spot on'.)

Original Message to Globe & Mail
From: "Jim Rogers"
To:
letters@globeandmail.com
Date: 18 Dec 2010

Subject: "How an Industry Outgrew its Regulators"

Having spent over 40 years as an agent working both directly for a single life insurance company and later as an independent, I concur that the 'lack of accountability' problems cited by Tara Perkins and Grant Robertson are pretty well as they have laid out.The solution is, however, simpler than waiting (hoping?) that improved regulation/legislation will solve the problem. Specifically, product manufacturers (i.e the insurance companies) should be held vicariously liable for the actions of both their MGAs and the agents who put their business through these MGAs.Were this so, the insurers would be far more careful about whom they appoint as an MGA in the first place and, in turn, MGAs would do more due diligence around the agents from whom they will accept business. Layered over these relationships would be minimum required amounts of bonding and E+O coverages--designed to protect the aggrieved policy owners from the financial consequences of proven inappropriate advice on the part of an agent.
Jim Rogers
http://www.rogersgroup.com/

From: The Globe & Mail
Dec. 17, 2019


For the entire article:

http://dzwicker.blogspot.com/2010/12/globe-and-mail-recently-published_24.html

Saturday, November 27, 2010

THE 'CASE' FOR ENTREPRENEURSHIP IN ACHIEVING PROFESSIONAL CAREER SEARCH SUCCESS


Are you an Entrepreneur or an Employee?

The current professional career search $60,000 + marketplace belongs almost exclusively to those whose instincts and professional career search behaviour are Entrepreneurial.


Why?

  • Of the 1000's of resumes received online by Human Resource departments and corporate recruiters for any given prime long term 'Career' opportunity 2% - 4% + - get through to senior Decision Makers.
  • The remaining 96% - 98% of online resumes are screened out by software programmed to allow through only those resumes which contain the appropriate 'keywords' taken from the 'job' description.
  • There is a definitive recruiting distinction between candidates who seek a 'job' and those who seek a professional longterm 'career' opportunity.
  • The 96 - 98% of the hopeful candidates whose resume submissions are screened out never learn why. The Standard Operating response Practice of HR departments and Executive Recruiters is based upon providing replies only to those candidates whose resumes were not screened out and who are being considered for an initial interview.

It begs the question as to why anyone would continue to submit resumes on a 'random' basis i.e. the assumption that "I think my resume is a 'good fit' so I'll send it off" - given a 2 - 4% probability of success rate. The probability of success is comparable to that in a lottery.

Of the 2 - 4% who are given an opportunity to meet a decision maker only those whose instincts are Entrepreneurial will have a genuine opportunity to succeed in making their case in a face to face meeting with a Decision Maker.

For details on the Entrepreneurial keys necessary to compete and win in the current Professional Career Search employer advantaged environment feel free to contact me.

It will be a pleasure and a privilege to share the details with you.

Respectfully,

Dan Zwicker.

'Raising The Bar'

Access to Decision Makers amomg the Best and The Brightest Employers.

Beyond Risk - Lifetime Financial Dignity

Tuesday, August 3, 2010

BIO

Dan Zwicker


Dan Zwicker has advised individual and corporate clients on wealth and risk management issues for over 30 years. During that time he has held corporate agency building leadership positions with some of Canada’s most successful life insurance companies and served clients as an independent financial consultant as well. Dan’s values based professional practice is premised on client empowerment through insightful awareness.


With considerable experience, expertise and professional discipline to draw on Dan has chosen to focus his consultancy on boomer retirement, estate and business succession planning. A strong proponent of unbiased planning and oversight services, Dan engages clients one-on-one to assist them in achieving lifetime sustainability of income in meeting their retirement lifestyle objectives.


Born in Montreal, Dan studied Civil (Structural) Engineering at Queen’s University in Kingston, where he earned an Honours Bachelor of Applied Science degree. In addition to his Professional Engineers (P.Eng.) designation, Dan’s credentials include Certified Financial Planner (CFP), Chartered Life Underwriter (CLU) and Chartered Financial Consultant (CH.F.C.).


With five children and six grandchildren, Dan enjoys an active family life. He is an avid student of politics, economics and professional financial practice.

Other interests include new business development, marketing, ‘Web 2.0’ social media, community interests and coaching high performance team sports.

Saturday, July 10, 2010

THE GOLDEN YEARS! TOUGH STUFF? LONG TERM SAVING IS TOUGH - KEEPING IT IS TOUGHER - SUSTAINING AN INCOME FOR 30 TO 40 MORE YEARS IS THE TOUGHEST


Few Boomers and GenX Canadians have been taught, coached or mentored on the last and toughest part of the equation.........it simply doesn't come up for discussion except for a few.

For a solution developed by the Best and the Brightest in the financial industry click on the link.

http://dzwicker.blogspot.com/

Read it thoroughly, then call and we'll show you how we have taken the answers that the investment industry uses for itself and delivered it into the hands of the public.

I call it a financial MRI and Xray - all in one.

Nothing missing.

Each of our lives deserves nothing less.

Dan Zwicker, CFP



Sunday, February 14, 2010

ENCOUNTERING FINANCIAL 'DEPENDENCY' - DURING RETIREMENT


Insights common in the pursuit of personal and financial health

A Medical Analogy

We develop type 2 diabetes because our pancreas does not supply sufficient insulin to carry the sucrose in our bloodstream to the fatty cells which require them.

We must supplement the insulin upon which we are dependent through medication for the remainder of our life.

We develop Financial 'Dependency' when after our first 30 - 40 years of earning an income we do not have sufficient capital to provide a sustainable income for us during a further second 30 - 40 years during our retirement.

To supplement our income we may have to continue to work during retirement and supply the necessary financial 'insulin' that we need.

Both events have a common cause.

Simply put, we are unaware that either dependent condition has been developing for years.

Both the medical and financial versions are at epidemic levels.

The Financial version is impacting 1 out of 2 Canadians who are preparing for retirement - the boomers.

Without a Financial prescription a sustainable income during retirement will not take place either as planned or as expected.

There is a solution to the financial condition.


It includes awareness, time and discipline in its application.

We would be pleased to share it with you.

Ask us and we will share it with you.

Dan Zwicker
Certified Financial Planner
Charterd Financial Consultant
Chartered Life Underwriter
Professional Engineers Ontario


Email: danzwicker@rogers.com

Tel: 416-726-2427

Friday, February 5, 2010

THE SECOND 30 - 40 YEARS - THE QUESTIONS TO BE ANSWERED


"Will I be OK?"

"Can I retire?"


"When?"

"For 30 - 40 years?"

"Without running out of income?"


WE LEARN HOW TO EARN AN INCOME FOR OUR FIRST 30 - 40 YEARS.

HOW DO YOU PLAN ON PROVIDING A SUSTAINABLE INCOME (NO SHORTFALLS) FOR THE NEXT 30 - 40 YEARS - DURING YOUR RETIREMENT?


We work one 30 - 40 year lifetime for which we were educated and trained. The income we produce is largely our responsibility. If we do what is expected we can control our income.We live a second 30 - 40 year lifetime or more for which we were not trained to fund a sustainable lifetime income throughout a 30 - 40 year retirement period.

We rely on our 'Advisors' who were not trained to fund a sustainable lifetime retirement income.

They were trained to offer products with various rates of return - with no control over the end result. The market controls the end result. Past performance does not assure us that we will remain in control of the results we need.

We can control our own work performance. We can't control our capital accumulation performance. We rely on others - advisors - trusted financial advisors.

To retain control over the end result we give our trust and must back it up through own due diligence - inspect what we expect. There are no 2nd chances.

The financial services industry is institutionally product driven.

Institutions get paid when products are sold.

Advisors get paid when products are sold.

Clients are rewarded with the remaining proceeds.

What the market offers is the best return possible in this paradigm.

It does not offer the best return possible in an alternative paradigm.

The consumer has no shortage of advisors or products.

The key shortage is time.


The solution requires a client centric process - devoid of product centric conflicts of interest - a process driven unbiased client centric regulatory compliant solution - independently of product centric retail financial institutions.

Comprehensively planned, transparent, with minimal market risk, continuously monitored investment bench marked performance with client privacy are at the forefront of our process.

Our focus is the 2nd 30 - 40 years. By that I mean assuring a sustainable retirement income (no shortfalls) throughout this 2nd. lifetime period. It's not happening with the 14,000,000 boomers in Canada now preparing to retire.
They are unlikely to retire as planned or as expected. They simply do not have access to the financial tools necessary.


The investment industry markets the highest returns – we mitigate unnecessary financial risk. The consequence of excess risk was clear after the 2008 financial meltdown.

We put the financial tools available to the investment management institutions directly into the hands of each client so they can answer these questions:

"Will I be OK?"


"Can I retire?"


"When?"

"For 30 - 40 years?"

"Without running out of income?"

30 - 40 retirement years is not a sprint - it's a marathon.

We coach high performance financial 'marathon' skills.
Our focus is on sustainable client financial empowerment.
Our combination of education, coaching and mentoring removes the financial ambiguity based on a lack of financial awareness in the matter of investment solutions designed to provide a 2nd. 30 - 40 year lifetime sustainable income..

The uncertainty associated with our need for a sustainable 30 - 40 year lifetime retirement income is replaced with a rational risk based process.

A risk-based approach to asset allocation is an active style of management that breaks away from the traditional buy, hold and rebalance strategy. It adapts asset mixes to evolving market conditions and rebalances them back to the portfolio’s target risk level.

The result is financial lifestyle defining.

We are financial practitioners.

We understand people, money and financial structure.

There are choices that we can each make.

We can do it ourselves.

We can work with an agent in the retail sector, or

We can work with an independent Professional Financial Planning and Investment Advisor.

There are client centric focused advisors throughout the entire financial services sector. 

The very best reach a conclusion that the only way they can act in an unbiased fiduciary relationship on behalf of their clients is by operating their own independent financial planning or investment management firm. In this role they are paid a fee for their service with no conflicting obligation to sell or recommend any corporate products or services

Here is a summary of the questions to ask your investment advisor:

1 - What is the amount of capital based on a minimum level of investment risk that I can expect to have available for retirement at age 60?

2 - What 'sustainable' income can I expect the above capital to generate between the ages 60 - 95?

'Sustainable' means with no shortfalls in income in any given year.

Ask us.

We will be pleased to show you how to answer these questions.

Check us out at:



http://dzwicker.blogspot.com/

For immediate help call me directly at: 1 - 416-726-2427


Or


email me directly at: Linkedindanzwicker@rogers.com

Dan Zwicker B.Sc. (Hons.) Applied Science (Structural Engineering)  

Queen's University, Kingston Ontario