WILL THE NEW OHIO LAW PROTECT YOU? IT’S NOT A ‘CATCHALL’ — HERE’S WHY
A new Ohio law, passed in February 2021, now attempts to impose “best interest” fiduciary standards on life insurance and annuity providers. While this initially might spark hope, unfortunately, the “best interest” standards are extremely vague. If a salesperson is able to argue why their product benefits their client, then they are allowed to sell whatever they want. Below are two cautionary tales from clients who have come to us for help in the past. If any of these situations have happened to you or a loved one, or are currently happening, we encourage you to seek additional financial tools and professionals. PUSHING ANNUITY SALES, NO MATTER THE AGE Some financial advisors will sell annuities to people in their 20s! While they can make the argument that money will grow in an annuity, there are many more downsides to purchasing an annuity as a young adult. For one, if you need to get that money out
before retirement age (at age 59 1/2), you will have to pay penalties.
Our client was in their 60s and wanted to secure some safe financial growth for the future. Their former “advisor” in this situation was aware that this consumer had dementia and was heading toward long-term care in the future. The annuity they wanted to sell them did not even allow access to funds for a long-term care need. Plenty of other tools out there DO allow access to funds for long- term care needs and even provide enhanced benefits for long-term care. Unfortunately, the client would have to pay penalties to get money out of their annuity on a monthly basis to pay for long-term care. Annuities are not in themselves bad, nor is the financial industry as a whole. Many financial salespeople are simply trying to make a living like the rest of us. However, many also try to make their discipline work to the exclusion of other tools that will do a better job. If you are looking to ease some long-term care concerns and develop a retirement income plan, please call 614-389-9711.
One particular client in their 40s came to us as they were changing jobs and evaluating their personal finances. We found out together that all their retirement savings were slammed into a variable annuity! Having all your eggs in one basket is simply not a good idea, especially in a variable annuity with a large fee structure. This client’s former “financial advisor” sold annuities and didn’t bring other useful financial tools to the client’s attention. The continually accumulating fees greatly eroded their potential wealth and growth for the future. And this is still completely legal under the new Ohio law. PAYING MONTHLY FEES FOR LONG-TERM CARE This story is something that actually would not be allowed under this new Ohio law and is the most abusive action we’ve seen by a financial advisor.
SUDOKU
OKTOBERFEST SOFT PRETZELS
Inspired by Tasty.co
INGREDIENTS
• 1 1/2 cups warm water • 1 tbsp salt • 1 tbsp sugar • 1 packet active dry yeast
• 4 1/2 cups flour • 3 tbsp oil, divided • 2/3 cup baking soda • 2 eggs, beaten • Coarse salt, for sprinkling 4. Cut dough into 8 pieces. Roll them into thin ropes, then twist ropes into pretzel shapes. 5. In a large pot, boil water. Add baking soda, then boil each pretzel for 1 minute, flipping halfway through. 6. Transfer pretzels to a baking sheet. Brush them with egg and sprinkle with salt. Bake for 10–15 minutes. Enjoy!
DIRECTIONS
1. In a bowl, combine water, salt, and sugar. Add yeast and let rest for 5 minutes.
Add flour and 2 tbsp oil, then mix thoroughly into a dough.
2. Remove the dough from the bowl. Coat bowl with remaining oil, then return the dough, cover with
plastic wrap, and set it aside in a warm place for 1 hour.
3. Preheat oven to 450 F.
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