On July 16, 2006, a controversial article was published in Parade magazine, warning readers against using annuities for financial planning unless they “already contribute the maximum to a 401(k), an Individual Retirement Account (IRA) and a Roth IRA.” The article cited “substantial annual charges and huge early-withdrawal penalties,” in addition to “very high commissions” as reasons why investors should shy away from annuities.

On July 18, the National Association of Insurance and Financial Advisors (NAIFA), in cooperation with the American Council of Life Insurers (ACLI), responded to the misleading information featured in Parade: “[The article] ignores a fundamental feature of annuities: the ability to guarantee to policy owners that they can receive lifetime income from their annuities.” In a letter written to the editor of Parade, NAIFA President David E. Smithkey, along with ACLI President and CEO Frank Keating, cited the numerous misleading claims and omissions of the article, saying "that all annuities are not alike. There are differences in fees and charges, surrender periods and savings options, as well as in access to assets in the product. In fact, more and more annuities are providing guaranteed withdrawal options that allow owners to tap a portion of the value of their contracts.” They concluded, “The article leaves readers with other mistaken impressions as well, with the bottom line being that Parade readers deserve a more accurate picture of annuities and how they boost the retirement security of millions of Americans.”

Parade cannot print letters in the magazine, but it gives visitors the opportunity to comment on articles posted on its companion website, www.parade.com. TAIFA President Tim Provence has asked members to respond by going to the website and posting comments.

To Post Comments or Review the Article in its entirety, please visit:

http://www.parade.com/articles/editions/2006/edition _07-16-2006/Annuities

The 2006 NAIFA Convention is just around the corner, August 26-30, in San Francisco. Initially booked for New Orleans, the ’06 Convention was moved to San Francisco and pushed forward from September to August in the wake of Hurricane Katrina. While the change in venue certainly ensures a more pleasant climate, that’s not the only reason to attend this year’s NAIFA Convention. TAIFA’s own Tom Currey, CLU, ChFC, of Mansfield, TX is seeking reelection as NAIFA-Trustee. Currey was first elected to a two-year term in September of 2004. He served as TAIFA President in 1998-1999, and National Committeeman in 2002-2003.

In addition to his more than 25 years of membership in TALU/TAIFA, Currey is an LUTC and CLU instructor. He was honored with the Career Achievement Award by NAIFA-Great Southwest in 1995, and in 2002, received the Texas Leaders Round Table Outstanding Achievement Award. Currey has represented TAIFA well at the local, state, and now the national level. Good luck to Tom in his reelection campaign in San Francisco!

TAIFA member Terry Harris, who was injured in a single-engine plane crash, died early Wednesday, July 26, in a Lubbock hospital.

Terry Wynn Harris, 54, and his son, 26-year-old Barkley Miles Harris, were en route to Lubbock from Amarillo on July 19 in a 1980 Cessna 210 when the plane encountered engine trouble, crashed into a rural Randall County field and caught fire.

The father and son team worked as consultants for Harris Financial Group Inc., an Amarillo financial planning firm founded by Terry Harris, who had worked in financial services for more than 30 years. In his spare time, Harris worked with parents and guardians of children with special needs, served as business committee chairman of the Amarillo Chamber of Commerce and on the Amarillo Area Estate Planning Council, according to a statement released by his family.

Monica is an Austin native. She joins the TAIFA family after seven and a half years at the elegant Doubletree Guest Suites, just blocks from the Texas Capitol building. Monica offers support in every area of TAIFA operations, backed by her years of event planning and administrative expertise.

Monica is the mother of two. She has one daughter, Alexandria (8), and one son, Richard (4).

Chris Williston joins the TAIFA staff after five years in youth and adult ministry. Born and raised in Austin, Chris received his Bachelors degree from TCU in 2003, and his Masters degree from TCU in 2006. His educational background includes, Communication, Psychology, Sociology, Religious Studies, and Theology. His writing has been featured in the online content of Relevant Magazine. Chris will contribute his knowledge of technology and communication to the TAIFA family and serve as Executive Assistant to CEO/CLO Des Taylor.

Chris and his wife, Michelle, live in Northwest Austin with their daughter Emily. They are expecting their second child in December.

Nancy Cates has served on the TAIFA staff since August 1, 2002. July 31, 2006 was her final day in the TAIFA office. “I am leaving to be Director of Development for the Mary Lee Foundation in Austin, where I have served on the board for several years,” Cates said in a letter to TAIFA staff, members, and friends.

The Mary Lee Foundation is a non-profit organization, committed to providing housing and services for people with mental disabilities. Though Nancy is looking forward to moving forward with her new endeavor, her decision to leave TAIFA was not an easy one. “I have enjoyed my four years with TAIFA and each of you more than you can imagine," Cates said. She concluded, “Be brave, be active and continue to move forward for the many who will follow.”

Of the many highlights of the 2006 TAIFA Convention, few stand out more than the keynote speech delivered by Texas Supreme Court Chief Justice Wallace B. Jefferson at the Legislative Lunch, July 22. After sharing some insight into his deep respect for his father, NAIFA-San Antonio member Bill Jefferson, the Chief Justice recounted his first experience in arguing a civil rights case before the United States Supreme Court as a young attorney in private practice in San Antonio.

In his introduction of the Chief Justice, TAIFA CEO Des Taylor referred to a report given by twelve year old Wallace Jefferson while a student at Anson Jones Middle School in San Antonio. The 1975 presentation explained the importance of life insurance, and those who sell it. The notes from the report had been carefully preserved by his father, who shared them with Taylor. "He received an 'A' on his presentation," said Taylor, "and he continues to received high marks for his service to the State of Texas." The report was published in several insurance related magazines and prompted insurance executives across Texas to write young Jefferson and make offers of employment upon completion of his education.

Also attending the Legislative Lunch was Texas Senator Tommy Williams of the Woodlands. Senator Williams took the opportunity to salute TAIFA members for their hard work and dedication to meeting the financial needs of Texas citizens.

The attendance of Justice Jefferson and Senator Williams signals TAIFA’s dedication to political action and advocacy on behalf of its members. This commitment to action will be further demonstrated when TAIFA members gather in Austin to meet with Legislators on January 23, 2007, TAIFA’s Legislative Day. With the 80th Session of the Texas Legislature just a few months away, the TAIFA staff is working to protect the interests of Insurance and Financial Advisors.

The future of every organization is dependent upon leadership. While the challenges of today often lay claim to our attention, it is imperative to plan for the challenges of tomorrow. As the adage says, "If you fail to plan, you plan to fail."

The NAIFA Federation's plan for the future is rooted in the development of strong leaders through programs like the Leadership in Life Institute (LILI), an intensive curriculum for personal growth. Using principles from popular resources like Steven Covey's Seven Habits of Highly Effective People, the LILI program helps students develop their effectiveness and leadership for success in both their personal and professional lives.

The Fall 2006 LILI class began on Thursday, July 20th, in Houston. Beginning in September, LILI students will meet in Austin once a month for five months. This year's LILI class is led by Amos Davis, LUTCF of Abilene, and Chris Hatton of Addison. The LILI students for 2006 are:

- Wallace Randy Flasowski, LUTCF from Central Texas AIFA
- Ray B. Griffith, CFP, RIA from Fort Worth AIFA
- Charlene Guess, CFP, CLU, ChFC, RFD, CSA from NAIFA-Austin
- Alyson T. Guest, LUTCF from Houston AIFA
- Tommy A. Keith from NAIFA-East Texas
- Wilson Kent Lacy, CLU, CPCU, ChFC, LUTCF from San Angelo AIFA
- Jeffrey R. Potter, LUTCF from NAIFA-North Texas
- Katherine M. Sachse from NAIFA-San Antonio