Top Story

• Boyle: Be on guard for changes to taxes, Medicare, Social Security
  Americans should prepare for measures that could impose limits on tax-advantaged retirement contributions and affect Medicare and Social Security, NAIFA's Diane Boyle says. People also may want to consider converting their 401(k) plans to Roth 401(k)s, opening a Roth IRA or increasing their retirement-account contributions in response to the recent American Taxpayer Relief Act, other experts say. MarketWatch (1/4)     

Industry News

• Who should convert from 401(k) to Roth 401(k)?
  The 401(k) conversions now allowed under federal law might make sense for investors who want to leave tax-free inheritances, regardless of the up-front costs, experts say. Conversions to a Roth 401(k) also might make sense for investors who expect to retire in a higher tax bracket or who have tax deductions and credits that would offset the taxes due as a result of the conversion. Consultant Jeffrey Levine says it's rarely wise to convert if an investor has to tap his or her retirement savings accounts to pay the taxes. MarketWatch (1/3)     

• "Fiscal cliff" deal leaves advisers cold
  Financial advisers don't share stock traders' enthusiasm about Congress' compromise to avert the U.S. "fiscal cliff," according to a survey by InvestmentNews. More than three-quarters of respondents said they don't think the deal will bring about long-term change in government spending, reduce the national debt or lead to tax reform. InvestmentNews (free registration) (1/3)     

• Opinion: Cash buyouts for variable-annuity riders often don't add up
  Cash buyouts offered to variable-annuity holders with guaranteed-living-benefit or guaranteed-death-benefit riders may not be advantageous, Sheryl Moore writes. With about 90% of those who purchase variable annuities opting for the riders, the value for many exceeds the cash amount they would receive upon surrender, Moore writes. National Underwriter Life & Health (1/4)     

• Commentary: Income riders can sneak up on indexed-annuity clients
  Income riders paired with indexed annuities can be misunderstood by clients, creating headaches for agents and insurers, writes Jason Kestler. He describes potential scenarios associated with rider features, including fees that are charged against the income base or that result in less value in a down market. National Underwriter Life & Health (1/4)     

Investment Trends

• Investors poured $7.17B into stock ETFs last week
  Investors pulled money out of bond funds and put $7.17 billion into exchange-traded funds that buy stocks in the week that ended Wednesday, according to Thomson Reuters' Lipper service. The flow of cash into stock ETFs was the most in three weeks. Reuters (1/3)     

Policy Watch

• Analysts question revenue expectations from 401(k) rule change
  Some retirement experts say a 401(k)-related provision in the "fiscal cliff" deal is unlikely to generate the $12.2 billion over 10 years that policymakers have estimated. Under the provision, more workers can move their money from traditional 401(k) plans to Roth 401(k) plans. Some say that few workers will have reason to convert, and those who do are simply shifting their tax payments ahead by several years instead of bringing in new tax dollars. Reuters (1/3)     

Hot Topics

Top five news stories selected by NAIFA SmartBrief readers in the past week.

• "Fiscal cliff" deal includes change to retirement-contribution rules (InvestmentNews (free registration))

• Waters: Tell Congress to maintain life insurance's tax status (The News-Press (Fort Myers, Fla.))

• Advisers applaud survival of $5M gift-tax exemption (Financial-Planning.com)

• Commentary: Independent agencies face more competition in 2013 (Insurance Journal)

• Low interest rates could hinder life insurers' returns, analyst says (National Underwriter Life & Health)

• Results based on number of times each story was clicked by readers.

Building Your Business

• Adviser recommends an "iTunes approach" to 401(k) plans
  The unbundled approach to designing a 401(k) plan allows for greater flexibility, writes Pete Kirtland of Aspire Financial Services. He describes such a model as an "iTunes approach," which allows advisers to choose the best individual investments, opt for providers that charge flat fees and replace underperforming investments when necessary. The Wall Street Journal/Wealth Manager blog (1/4)     

NAIFA News

• Mediation beats litigation
  Have you witnessed or experienced family conflict or a business disagreement and the first thought that comes to mind is using the legal system to resolve it? Consider mediation. The NAIFA ClientCast this month features Amy Lieberman, attorney, author and mediation specialist, who will share how mediation can be a better alternative than arbitration or litigation. Register now. ClientCast is a free NAIFA member benefit.     

SmartQuote

Live as if you were to die tomorrow. Learn as if you were to live forever." --Mahatma Gandhi, Indian lawyer and activist