Vol. 1   Issue 3 - October 2009  -  www.cannonfinancial.com

Practice Management - Comprehensive Wealth Management is the Way to Go

A core premise of many Cannon courses is that advisors who offer comprehensive wealth management solutions retain clients for a longer period of time, have deeper client relationships, and insulate their clients from competition. Said another way, the more products and services that advisors provide their clients the less likely it is that that client will seek advice elsewhere.
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Planning Ideas - Qualified Principal Residence Trusts

Although home sales to first time buyers qualifying for the $8,000 income tax credit have picked up, residential real estate prices have remained depressed in many areas of the country. Despite the persistence of relatively low interest rates, the currently depressed housing market may make this a good time to discuss a planning tool that’s been around for some time, the Qualified Personal Residence Trust (QPRT). Read More.

Regulation and Compliance - Variable Annuities

The Financial Industry Regulatory Authority (FINRA) has long had variable annuities (VAs) on its “radar screen.” FINRA maintains that there is a lack of adequate training and supervision of broker-dealers in connection with VA sales and that firms and individuals do a poor job of assessing suitability for products and riders. The concern is heightened, because a disproportionate number of annuity sales are made to the elderly, who FINRA considers easy Read More.

Taxes - Private Letter Ruling on Reverse Qualified Personal Residence Trust (QPRT)

With residential real estate values depressed, the time is right for Qualified Personal Residence Trusts (QPRTs). QPRTs are typically used to facilitate the transfer of the grantor’s personal residence to his or her children. The grantor establishes the trust and retains an interest for a term of years, during which time he or she continues to live in the home. After expiration of the term, the residence is distributed to the grantor’s children, either outright or in trust. What makes QPRTs attractive is that the gift tax value of the residence is discounted by the value of the retained interest while future appreciation is shifted to the children. With home prices depressed, current valuations are low and the potential for future appreciation high. Read More