James Liotta

CFP®, NSSA®, AIF®
Personal Finance, Retirement, Investing
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Answers
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Articles
“James Liotta, President of Prominence Capital, employs a simple strategy of finding the right solution for his clients, no matter their wealth management needs.”
Firm:

Prominence Capital GP, LLC

Job Title:

President, Principal

Biography:

James Liotta, CFP®, AIF®, NSSA®,  is President of Prominence Capital GP, LLC. 

James began his career in 2002 with UBS PaineWebber in Los Angeles as a Financial Advisor. He became the third member of a three person team specializing in options strategies, small capitalization stocks, municipal bonds, and risk management strategies. 

In 2005 he was recruited by Merrill Lynch and later again recruited by Wells Fargo Investments where he specialized in risk management, provided detailed financial plans, and managed the portfolios of High Net Worth Individuals and Corporations. 

James Liotta is a CERTIFIED FINANCIAL PLANNER™ practitioner.

James earned an MBA in Finance from the University of Southern California Marshall School of Business and has a Bachelor of Science from Northeastern University. At the Marshall School of Business he also attained the Graduate Certificate in Financial Analysis and Valuation. 

He has also achieved the Accredited Investment Fiduciary designation and National Social Security Advisor certification.

He is a member of the Board of Governors of Cedars-Sinai Hospital and lives in Los Angeles with his wife Alicia and children Gemma, Hannah, and James Jr. 

Education:

BS, Sports Medicine, Northeastern University
MBA, Finance, University of Southern California
Graduate Certificate in Financial Analysis and Valuation, University of Southern California
CFP Certification Professional Education Program, College for Financial Planning

CRD Number:

4493058

Disclaimer:

Prominence Capital GP, LLC. ("Firm") is a registered investment adviser located in Beverly Hills, California. Firm may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.

 

All Articles
6 days ago
    Choosing an Advisor, Investing, Stocks, Taxes
June 2017
    Annuities

All Answers
    Annuities
What are the biggest disadvantages of annuities?

The disadvantages of annuities depend on the type of annuity. These products can provide benefits and advantages for people in the right situations. They all have some disadvantages.

Single Premium Immediate Annuities or SPIAs

This annuity will provide a guaranteed (by the issuer only) income for the life of the annuitant where payments typically start one month after purchase. General disadvantages are:

  1. Benefits (income stream) are fixed and do not increase with inflation.
  2. Principal is no longer available for emergencies. Buyers give up control of their money in return for an income stream guaranteed by the company who sold them the annuity. Financial soundness of the issuing company is also important to research and understand.
  3. Many of the added features of these annuities will reduce monthly income.
  4. Income per thousand dollars of principle will vary between the companies who sell these products. This makes shopping for an annuity very important as different issuers will provide different income rates per thousand. 

Deferred Annuities 

These products come in two forms: Fixed and Variable. These contracts are based on the accumulation value of the investments made inside of the contract rather than immediate payments. Taxes on the growth of the investment is deferred until withdrawals are made. There are Single Premium (SPDA) and Flexible Premium (FPDA) deferred annuities.

Fixed Deferred Annuities Disadvantages:

  1. These contracts because of the fixed returns may not keep up with competition or as the purchaser's situation evolves may not provide the required rate of return to meet goals. If the owner then wants to move the investment in this contract they may be faced with surrender charges. Surrender charges may have a schedule that lasts many years and can be very expensive. It is not uncommon to see a 10 year surrender charge schedule starting at 10% and going down to 0% by the 11th year. It is extremely important to understand these types of charges before buying a deferred annuity. 
  2. Early withdrawals generally come with a 10% IRS penalty if withdrawn before age 59 1/2.

Variable Deferred Annuities Disadvantages:

  1. Values of the sub-accounts in the annuities can fluctuate similar to mutual funds, index funds and ETFs. These contracts include insurance company expenses and it is important to understand them an understand the features of an annuity. If the features of the annuity are no longer desired or needed the purchaser may have been better off investing in funds without the insurance contract expenses that are involved with these types of annuities.
  2. The same 10% tax penalties on early withdrawals before age 59 1/2 apply.
  3. These contracts also come with surrender charge schedules.
  4. Variability of income stream due to the underlying performance of the subaccounts making income unpredictable may be undesirable.

Ultimately the buyer of an annuity must fully understand the features of the annuities they are buying. All annuities have disadvantages that must be understood. The individual selling the annuity should be upfront with the disadvantages and convey them. 

December 2016