Greater Philadelphia Chapter - SFSP
KeyFacts e-newsletter May 2004
Every quarter we will send you this electronic email that will provide you with
Chapter news and events as well as articles of interest. 
If you have a question, please email us at gp-sfsp@association-cba.org
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President's Message
Frank Branca, CLU, Branca-Rampart Agency Inc.

Winter is finally ending and with its end we all feel the rebirth of Spring and Summer. We ended winter with our 11th Annual Professional's Day Dinner, and what a terrific ending it was. Roy Firestone entertained over 300 members and their guests. By all accounts this was our most successful dinner to date. If you didn't make it this year, you should plan to join us next year for this premier event.

Again this year, your chapter participated in the Susan G. Komen Race for the Cure on Mother's Day, May 9th on the Parkway. This event means a great deal to my family and me and so we were happy to supply T- shirts to all attending members and their family and friends walking or running for the Cure. The shirts were being donated in honor of my late wife, Carol, who died from breast cancer in 2001.

Over 20 people joined us and we thank them: Ken Leith, Gail Brittingham, Adelina and John Martorelli, Howard and Gloria Soloway, Frank Branca, Jr., Victoria Branca, Michael Fleigham, Sarah and Allison Brewer, Ellen Radcliffe, Kit McCarty, Theresa Breslin, Paul Velho and his family, Sharon Lewis-Gregg, and Dottie Theune and her family.

ALSO: Join your Chapter and NAIFA-GP in their Annual Charity Golf & Tennis Classic at Green Valley Country Club on Monday, June 7, 2004! Greens Fees: Golf Foursome: $680 (includes four players, Lunch & Dinner); Individual Golfers: $175 per player (includes Golf, Lunch & Dinner); Tennis: $75 per person (includes Tennis at 2:00 PM & Dinner); Dinner Only: $50. Contact: NAIFA-GP, (610) 341-8602; office@naifa-gp.org
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Mark Your Calendar!
June 9 - Annual Institute Meeting
The Future of Money Management
Gregg Conference Center, Bryn Mawr
Registration & Continental Breakfast - 8:30 AM
Program - 9 to 10:30 AM
Registration Fee - $45 Society Member; $55 Non-member; Past President - complimentary
Speakers:
Pete Moran, Director of Intermediary Distribution, Turner Investment Partners
John Wren, Regional Director, Lockwood
 
The financial service professional is currently facing a quagmire of distrust brought about by the scandals that have rocked the wealth management world. Not only has corporate distrust placed a heavy burden on our industry, but scandals within the mutual fund industry seem to have no boundaries. What is our industry thinking will happen to money management?

This discussion will focus on money managers' ideas on where the money management profession is headed, for the financial services professional. Does he/she see that there will be a major proliferation in the fee-based planner in the future, who works exclusively with no-load funds, and do the recent scandals that have rocked the mutual fund world hasten this advent? Where does this leave the load funds, and does a planner need to use both in his arsenal? Is the client with less than $500,000 of investable assets going to understand why to use a fee only professional, or be given the opportunity to choose? Also, recent allegations of illegal or unethical practices by mutual fund managers and insiders have resulted in intense scrutiny of the mutual fund industry.

We know that one of the practices under investigation is 'directed brokerage.' In order to end these practices and the inherent conflicts of interest which result from them, the U.S. Securities and Exchange Commission has issued a proposed rule that would amend Rule 12b-1 to prohibit directed brokerage practices. The SEC has also requested comments on whether it should adopt other amendments to Rule 12b-1 or repeal the rule in its entirety. How does the money manager feel that this will change our industry, and specifically, how will costs of investments and funds be affected?

You can not afford to miss this exciting panel discussion, so that you can prepare for your future in money management.
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11th Annual Financial Professional's Dinner Huge Success
Frank Lazarus, CLU, ChFC, RFC
 
"Wow!' 'Best Ever!' 'A Truly First Class Event!'

These are just some of the comments we had following our Financial Professionals Dinner on March 31st at the Presidential Caterers. The event was attended by over 300 Financial Services Professionals and 25 Sponsors.

The evening began with a Sponsor Forum, a meet and greet event where the sponsors were able to visit with existing, and potential clients. Concurrently, there was a Private VIP reception for our Platinum Sponsors - Lincoln Financial Distributors; Nationwide Provident; Manulife Financial; Model Consulting, Inc.; MassMutual/First Financial Group, Annuity & Disability Sales Offices; and Walsh & Nicholson Financial - and their invited guests with the evening's featured entertainer, Roy Firestone.

Dinner followed, then Roy Firestone gave a totally unexpected 'performance' of singing, impersonations, and stories from his 20+ years on interviewing sports greats. The evening concluded with a Dessert Party and sponsor Forum. This dinner has become the premier networking event for Financial Services Professional's in the Philadelphia Region, and thanks need to go to all who participated, our Sponsors and attendees, and the committee who worked so tirelessly in organizing the night. Plans have begun for next year's event and we welcome your suggestions for next year's speaker or event - just email the Chapter.

Thank you to all of our 2004 Sponsors: Platinum Sponsors Lincoln Financial Distributors; Nationwide Provident; Manulife Financial; Model Consulting, Inc.; MassMutual/First Financial Group, Annuity & Disability Sales Offices; and Walsh & Nicholson Financial. Gold Sponsors BISYS; Coventry First, LLC; ING US Financial Services; Nationwide Financial Services and The Best of America; MONY Partners; and Prudential Select. Silver Sponsors Barrist and Company; Branca-Rampart Agency, Inc.; Bryn Mawr Trust Wealth Division; Capitas Financial; Karr Barth Assoc, Inc.; Mand Marblestone & Danziger, P.C.; Montgomery County Association of Insurance & Financial Advisors; NAIFA-Greater Philadelphia; Neiburg Insurance Agency, Inc.; Rockwood Programs, Inc.; Society of Financial Service Professionals; State Street Research Investment Services; and Underwriting Specialists, Inc.
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Board Elections & ByLaw Change

On June 9th at the Annual Institute Meeting we will be electing new officers and board members. Below is the list of nominees.
Please join us on June 9 and elect your new board and thank the outgoing board!

ByLaws Change: The Chapter Board of Directors has voted to eliminate one officer position - Second Vice President. The reason behind this decision was to reduce the number of years a member needs to serve as an officer before they can be president. With all the demands placed on our members - work, family, etc. - we hope that this change will make the commitment to the Chapter less burdensome. We will be asking you to vote by email or fax or mail by June 1st. Ballots will be emailed and faxed to you. Thank you for your involvement in the Chapter!

2004-2005 Board Officer Nominees
President, Gail Brittingham, CLU, ChFC of Lincoln Financial Distributors
First Vice President, Adelina G. Martorelli, JD, LLM, CLU, ChFC of Nationwide Trust Company
Secretary, David Karr, CLU, ChFC of Karr Barth Associates, Inc.
Treasurer, Frank Lazarus, CLU, ChFC, RFC of MassMutual/First Financial Group
Immediate Past President, Francis P. Branca, CLU of Branca-Rampart Agency, Inc.

2004-2005 Board of Director Nominees
Jonathan S. Corle, CLU, CPC, CFP of Tycor Benefit Administrators, Inc.
Jeffrey J. Podraza, ASA, CLU, ChFC of ING LifeDesign
Frank B. Urso, MSFS, CLU, ChFC of Lincoln Financial Distributors

Directors who will remain on the Board
Arthur Bavelas, CLU, ChFC - Bavelas-Branca Agency, Inc.
Robert M. Flood, III, CLU, ChFC - Westport Worldwide
Anthony C. Smith, CLU, ChFC - Society of Financial Service Professionals
Doris Theune, CFP - Bryn Mawr Trust
Catherine (Kit) McCarty, CEBS, REBC- Securian Financial Network, Inc.
Paul Velho, CLU, ChFC - The Hartford

Thank you to our Board Members whose term expires June 30, 2004:
Russell H. Bishop, Jr., CLU, ChFC, CFP - Harvest Advisors
C. Kenneth Leith, CLU, ChFC, AEP - Leith Group
Special thanks to our Immediate Past President who will be stepping down from the Board: Paul Masalski, CLU, ChFC of Financial Growth Plans, Inc.
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A Wrap-Up of the April 2004 Seminar: An Overview of the Disability Product Today
Robert M. Flood, III, CLU, ChFC

In a packed room at the Gregg Conference Center on April 8th, the speaker vigorously shook a can of soda and placed it in a paper bag with two undisturbed cans. Admiral Cronin, a long-time and esteemed member of the Greater Philadelphia Chapter (who knows you're never too seasoned to learn something new) had the unenviable challenge of picking a 'safe' can to open. The point? People actively at work have a one in three chance of suffering a disability lasting more than 90 days before they reach age 65.

Ron Capone, one of our region's leading disability specialists, used this effective attention-getting device to open his very helpful continuing education session on Individual Disability Insurance for the professional and business owner on April 8th. Among the many important policy elements he cautioned agents to be aware of were: · Contractual policy guarantees - carrier's right to cancel or increase premiums · Definition of total disability - pertains to inability to work and does not address income loss · Tax implications of premium payments - Employer-paid: benefits are taxable as ordinary income; individually paid: no tax paid on any benefits received. · Income replacement - contracts pay benefits solely on income loss resulting from accident or sickness. · Elimination periods - following the onset of disability before benefits are payable. The range of periods is typically 30 days up to years, and benefits are paid in arrears. · Policy exclusions and limitations in the contract are generally limited to pre-existing conditions, acts of war and service in the armed forces. Underwriting Upfront financial and medical underwriting expectations should be reviewed and established with the client. A detailed cover memo should accompany every application detailing any issues that could assist in the alacrity of the policy issued as originally applied. In summary, according to LIMRA studies disability insurance is under solicited and is often misunderstood by the public. Individual contracts fill in gaps that are not covered by typical group long-term disability contracts (i.e., bonus compensation,).

If you did not have an opportunity to attend this program but would like to receive the materials, please email your request to the Chapter.
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Membership News!

The National office of the Society has implemented a new program that should make it easier for your colleagues to become members.

Prorated Dues For New Members
Effective immediately, prorated dues are now available for new members and lapsed members who have not been a member for 2 years or more. This replaces the extended dues option previously offered. If a new member joins in July, August or September they pay full dues through the next year and receive these months free. When a new member joins SFSP they begin payment the first of the following month and receive membership benefits immediately. For example, if a new member joins in January, their prorated dues will begin in February and they pay thru September 30, for 8 months, or 8/12 of national dues (67% or $120.60) and 8/12 of chapter dues. This allows you, our current members, the opportunity to eliminate a potential monetary reason for colleagues and other credentialed persons not joining the Society. And remember to offer our 30-day free online trial opportunity as well.

If you haven't asked someone in you office, or someone you do business with, to join now is the time. Get involved with helping the Greater Philadelphia Chapter of the Society to grow its members which allows us to offer new and more benefits and services. After all, someone probably did the same for you by personally asking you to join!
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The Editor's Briefs: 'Nothing Endures but Change'
Russell H. Bishop, Jr., MDiv., CLU, ChFC, CAP, CFP®

Our quotation -- and title -- of my last editorial message comes from that semi-great Roman philosopher, Heraclitus. The only remarkable thing about it is how much more apparent the truth of it has become over the past two millennia since he commented on it. I know my own life has always been a work in progress (some might say a cork bobbing in the ocean) and so I've collected maxims the virtues of change, perhaps to justify my own addiction to it.

Some of my favorites are: ·
'The only thing that happens in life is metamorphosis. The rest is death.' Norman O. Brown ·
'Change is a constant in a progressive country.' Disraeli ·
'You must change in order to survive.' Pearl Bailey ·
'The reason men oppose progress is not that they hate progress, but that they love inertia.' Elbert Hubbard ·
'In order to survive in the future, people and cultures 'must learn to become more comfortable with change than with rigidity.' Alvin Toffler

Changes in technology alone in the past 50 years have had a dramatic effect on the way we work and play, but most are neither intrinsically good nor bad. It's what we choose to do with them - individually and as a society - that determines whether things like TV, computers, cell phones, faxes, copiers, Palms, jet planes, the Internet, CDs, DVDs, IPods, cable, frozen dinners and the countless other things that didn't exist in 1954 affect our lives positively or negatively. So change itself is a constant, but the choice of what to do and how to act in the matrix of a changing environment is ours to make every day. Those choices can be informed by what we hold as immutable values and consistent goals. We become rigid when we fear change per se, but when we have a clear moral compass, we can find our way through a changing landscape, using new tools as they appear to help us reach the destinations of our heart and soul.

Our Chapter is about to go through its annual change of leadership. We are also proposing to revise our by-laws to eliminate to position of Second Vice-President. We were motivated to suggest these changes to you in order to achieve two desirable goals: 1. To eliminate the need for someone to make a nine-year commitment in order to serve on the Board and go through the chairs; and 2. To allow us to attract the strongest possible Board, made up of people with diverse talents and interests, not all of whom would wish to go through the chairs.

It has been a pleasure and a privilege for me to serve on this Board. The people I have served with during my term are people of vision, quality and integrity, and you have been well served by them all. I hasten to add to that list our very talented Executive Director, Christine Boylan, whose intelligence and dedication have been key contributing factors to our Chapter's success over the years.

As I exit the Board and the Editor's chair, let me share a few words of wit and wisdom I've collected from my experience with Chapter members over the years, including a final maxim on change:
· Change is inevitable, except from a vending machine. · As long as there are tests, there will be prayer in public schools · When you do a good deed, get a receipt, in case heaven is like the IRS. · Warning: Dates in your calendar are closer than they appear. · Always remember you're unique, just like everyone else. · Be nice to your kids. They'll choose your nursing home. · Don't ever stop to think, unless you're sure to start again.
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