Watch Calling Yourself a Financial Planner

No one has ever lost money in a fixed or fixed index annuity due to market forces.

I also really wish that they would clarify this key point.
 
The commissions on a lot of FIA's has come down. You could easily sell a 5 FIA and make 3-4% commission.

Why do people think that when insurance agents sell an FIA, they think huge commissions?? The clients must fill out a suitability form and the insurance company can choose to not issue a policy.

Lets face it....Securities have screwed more seniors out of money than any indexed annuity ever has...but that is ok...

Document, document, document...and anyone securities or not can be thrown to the wolves...
 
You know what this is all about? It's about the insurance industry's idiotic obsession with projecting the image of being in the financial advice/planning business.

If the insurance industry would forsake the securities industry this crap wouldn't happen. But no, we're too busy trying to steal each other's lunches.

And the winners? Those who legislate and enforce the complicated rules that no one really understands.
 
No one has ever lost money in a fixed or fixed index annuity due to market forces.

I also really wish that they would clarify this key point.

And what would you call MVAs (Market Value Adjustments). I understand MVAs and can explain them to my clients but I would stay far away from a statement like no one has ever lost money in an annuity fixed or otherwise especially when State Guarantee funds don't cover 100% of some clients deposits, the loss of access to account value while a carrier is going through receivership.

Fixed Annuities are a conservative savings vehicle and leave it at that....


Also for those that say the agent didn't meet the responibilities of a RIA....At what point does the added scrutiny attach because this agent could operate as an agent or a RIA, I seem to remember American Express Financial advisors running into an issue because they would offer a "Plan" under an agreement as a RIA and then sell the products as agents.
 
Also for those that say the agent didn't meet the responibilities of a RIA....At what point does the added scrutiny attach because this agent could operate as an agent or a RIA, I seem to remember American Express Financial advisors running into an issue because they would offer a "Plan" under an agreement as a RIA and then sell the products as agents.

Once you hold yourself out as a RIA. Of course we are only getting the state's version, but he seemed to clearly call himself a IAR and offer advice as one. He then put everyone in the same vehicle. Good advice or bad advice, he put a bullseye on his back.
 
Not only did he put everyone in the same vehicle, but he put them all with the same company! (RBC)

He also ran into trouble by clearly representing himself as a RIA on his marketing info, but then failed to list the name his RIA operated under on the same info, instead he listed his insurance company.

They also cited him for not presenting alternatives or even mentioning them; certainly not kosher for a RIA.

He is the one who put the bullseye on his back, I dont really feel too sorry for him after reading further.
 
Why do people think that when insurance agents sell an FIA, they think huge commissions??

1. If you've been in a broker/dealer system... I remember selling 7-year variable annuities for a 7% GDC... then having it go through the grid.

2. Idiotic media stories like Chris Hansen's thing about 2 years ago and his "undercover" into annuity sales courses.

3. Stories about how seniors are "duped" into supposedly unsuitable annuities by those who have the CSA designation.
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You know what this is all about? It's about the insurance industry's idiotic obsession with projecting the image of being in the financial advice/planning business.

If the insurance industry would forsake the securities industry this crap wouldn't happen. But no, we're too busy trying to steal each other's lunches.

And the winners? Those who legislate and enforce the complicated rules that no one really understands.

Do you know why? Because it's too painful to prospect!

If you were seeing 10 prospects a week and sold them term life insurance... that would earn you MORE than 1 case being a "financial planner".

Less risk to the agent because you have MORE people to work with.

And because you have less prospects, you are AFRAID to lose a deal... so you need to portray yourself as "objective". Now that I think about it, it's really a refined way to deal with trying to hatch "China eggs".

Better prospecting and efficient business systems will cure the income problem that most agents suffer from.
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And what would you call MVAs (Market Value Adjustments). I understand MVAs and can explain them to my clients but I would stay far away from a statement like no one has ever lost money in an annuity fixed or otherwise especially when State Guarantee funds don't cover 100% of some clients deposits, the loss of access to account value while a carrier is going through receivership.

Fixed Annuities are a conservative savings vehicle and leave it at that....

I freely admit that I don't know everything about every annuity out there. But I understand 100% of every annuity I sell.
 
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A few comments:

I stopped doing free lunch seminars. I do "no free lunch" seminars and advertise them as such. This is partly because there is less scrutiny, more emphasis is on education, and frankly, the tide is currently in favor of this type of seminar -oh, and no interrupting the presenter with a salad brought out too early.

I always have clients sign a secondary statement of understanding at point of sale just between them and me that says, among other things, that they know I am getting paid a commission directly from an insurance company in addition to whatever they may pay me as an advisor and that they are cool with that. In the delivery I yellow highlight everything bad about the annuity and I highlight the free look period. I spend extra time explaining penalty periods and put a star next to penalties in addition to highlighting.

I own some sizable annuities myself and discuss that with clients. Let anyone claim I sell bad products just to get a commission when I own what I recommend.
 
Yea being securities licensed sucks but man I just did 10k in trades today, kinda hard to let it go ya know !
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A few comments:

I stopped doing free lunch seminars. I do "no free lunch" seminars and advertise them as such. This is partly because there is less scrutiny, more emphasis is on education, and frankly, the tide is currently in favor of this type of seminar -oh, and no interrupting the presenter with a salad brought out too early.

I always have clients sign a secondary statement of understanding at point of sale just between them and me that says, among other things, that they know I am getting paid a commission directly from an insurance company in addition to whatever they may pay me as an advisor and that they are cool with that. In the delivery I yellow highlight everything bad about the annuity and I highlight the free look period. I spend extra time explaining penalty periods and put a star next to penalties in addition to highlighting.

I own some sizable annuities myself and discuss that with clients. Let anyone claim I sell bad products just to get a commission when I own what I recommend.


Thats awesome you do that, every annuity I sell I actually have a client sign a client rationilization that is a half a page long on word.

When I was with Ameriprision, i mean Ameriprise they really did a good job on hosting seminars that were educational, leave your check book @home type a deal. It worked well but MAN where they some plate lickkkahhzzz!!:no:
 
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Yea being securities licensed sucks but man I just did 10k in trades today, kinda hard to let it go ya know !
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Thats awesome you do that, every annuity I sell I actually have a client sign a client rationilization that is a half a page long on word.

When I was with Ameriprision, i mean Ameriprise they really did a good job on hosting seminars that were educational, leave your check book @home type a deal. It worked well but MAN where they some plate lickkkahhzzz!!:no:

On one level I think that is a good idea....The issue is wether your carrier would consider it a client letter and as such not require pre-approval as long as your not doing more than 25 per day.....Has an audit ever uncovered one of these? If so how did it go?
 
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