SAI had a post in another thread wishing for more discussion on annuities. So I'm curious about how you all market for them.
I have seen programs for seminars, and while I imagine I can put together a powerpoint presentation I don't want to spend $$$$ on a seminar at this time.
With all the senior predation and NASD BS, how do you talk about market risk without giving investment advice and running afoul?
My primary market for annuities is business clients and anyone I run across who has a 401k at an old employer.
But I am also appointed to sell birthday insurance, and I intend to use it as a loss leader (hopefully, break-even) with seniors so I can do a financial review and discuss annuities, ILIT's, and pooled income funds with them.
Is anyone targeting the Boomer market, or cold calling? How about the 403b market?
SAI had a post in another thread wishing for more discussion on annuities. So I'm curious about how you all market for them.
I have seen programs for seminars, and while I imagine I can put together a powerpoint presentation I don't want to spend $$$$ on a seminar at this time.
With all the senior predation and NASD BS, how do you talk about market risk without giving investment advice and running afoul?
My primary market for annuities is business clients and anyone I run across who has a 401k at an old employer.
But I am also appointed to sell birthday insurance, and I intend to use it as a loss leader (hopefully, break-even) with seniors so I can do a financial review and discuss annuities, ILIT's, and pooled income funds with them.
Is anyone targeting the Boomer market, or cold calling? How about the 403b market?
I believe the only good ways to sell annuities are seminars and to cross sell your other clients. People don't know about annuities so they don't come asking for them.
I suggest getting a presentation from an annuity company. ING has one called "Safe Money" and is compliant. Seminars aren't all that expensive when you consider the return on investment.
One of the problem areas with respect to "giving investment advice" is simply the conversation with the client where you are moving assets into an annuity, the sale of the investments. You should check with your annuity company to see how they want the transaction to take place. Then, document everything with the client.
I run seminars and talk with existing clients about them. I do not know of anyone that is a high annuity producer that does not run seminars. I am sure it can be done, but I have not met anyone.
indaville,
How many times have you not sold anything from a seminar? Or do all of them have a pretty good return?
So far this year I have had 43 seminars. Almost all of them have produced sales. It is the law of averages. Some might produce only a few thousand in commissions. Others have produced as much as $50,000 in commissions.
The Series 65 is also known as the Uniform Investment Adviser Law Examination. It would allow you to be a fee based advisor or to give investment/securities advice. It does NOT allow you to SELL investments or securities. It is basically a test and costs a few hundred dollars (I believe it is about $250, but I may be wrong). Basically you buy a book and study your butt off.
The best part about it is that you do NOT need a sponsor! You can take it on your own!
I just learned about it myself and just started looking into it. For more info on the Series 65, check out:
My understanding is that if I wish to give securites advice and an indy producer I had better
A) become and RIA
Or
B) get hooked up with a b-d.
Both require exams and compliance. Start-up costs for such endeavors ~~$4k-10K.
Min. requirement in business account to register in my state is $35k.
Would just as soon learn how to talk around the subject and stay within the law. Anyone have some guidelines?
Well, don't give advice directly about Securities, yet you can talk about investments. I wouldn't lose sleep over it, just as long as you are upfront about what it is you're selling. What I find working, is compare an Annuity/WL/UL or what have you, directly too what the client is making off their investments, as in MF's or what have you. What you have to be careful about is comparing Apples to Apples, not Apples to Oranges. I really can't imagine this being a problem.
Well, don't give advice directly about Securities, yet you can talk about investments. I wouldn't lose sleep over it, just as long as you are upfront about what it is you're selling. What I find working, is compare an Annuity/WL/UL or what have you, directly too what the client is making off their investments, as in MF's or what have you. What you have to be careful about is comparing Apples to Apples, not Apples to Oranges. I really can't imagine this being a problem.
It depends on the state in which you live. If you are liquidating a security and investing that money into an annuity then most regulators will argue that you are giving securites advice. Here in Kentucky if you have clients that are liquidating their investments for your annuity and you do not have a securities license and the regulators find out, then they are going to pull your insurance license. I would recommend getting the RIA because it will help prevent this type of harassment. I am currently securities licensed with a B/D but I am opening my own RIA by the end of the year.
If I understand it correctly, the 65 will make you a RIA. You won't need an account at a broker since you aren't selling anything, just giving advice.
THis is true in Ohio and from my understanding of the Series 65 test/license.
You should check with your state. Just because I pass my insurance test doesn't mean I'm licensed.
Also, you are selling something -- annuities. Just because your not being paid directly by the client doesn't mean your not giving investment advice for compensation.
My understanding is if you do an annuity seminar and include graphs of, say, nasdaq and how it still hasn't recovered, some nasd a-hole is going to try to say you are practicing w/o a license.
Yep, check with your state. Having a 65 does NOT make you an RIA - the RIA is a state process (until you hit a certain level of assets under management). A B/D is there for you to share commission payouts on securities sales - you don't need it for money managers who will allow you to be an IAR (independent advisory representative) of their RIA, which many of them will.
The problem is always the client - in that, if the client says you told them to sell their securities (from their brokerage account, say) in order for them to put into a FIA, for example, and you don't have the appropriate documentation, then you would be found to have been giving securities advice without a license, and that would be bad......
What is that rate of a typical fixed annuity (that would pay an agent a commission) these days? Is it so much better than a regular CD that it is worth all the disadvantages that go with it?
Also, are insurance agents allowed to recommend one fixed annuity over another for no other apparent reason that it pays a better commission?
What is that rate of a typical fixed annuity (that would pay an agent a commission) these days? Is it so much better than a regular CD that it is worth all the disadvantages that go with it?
Also, are insurance agents allowed to recommend one fixed annuity over another for no other apparent reason that it pays a better commission?
Most fixed annuities are paying aound 5%. That is tax deferred though. If you are in a 28% tax bracket then that 5% annuity is getting you the return of a CD paying 6.94%. I don't think any CD's are paying that. I am not sure what you think "all" the disadvantages are in annuity. I would rather buy a 5yr annuity paying 5% then a 5 yr CD paying 5.5%.
It depends on the state in which you live. If you are liquidating a security and investing that money into an annuity then most regulators will argue that you are giving securites advice. Here in Kentucky if you have clients that are liquidating their investments for your annuity and you do not have a securities license and the regulators find out, then they are going to pull your insurance license. I would recommend getting the RIA because it will help prevent this type of harassment. I am currently securities licensed with a B/D but I am opening my own RIA by the end of the year.
Matt
While I'm not going to argue what you said here is incorrect. In fact I don't know how a Insurance Agent can liguidate a Securities Account? I would agree though, that if you are going to start taking money out of a IRA or any Tax Exempt Account, send them to a person knowledgeable on that process and can do it while giving the client the best advantage with taxes or penalties. Now if that money is in a Mutual Fund or Stocks that are not in a tax advantage account, I don't see how any regulator would have a say in it?
Now I understand that the BD's are upset, as they see Billions of dollars leaving MF's and other vehicles as people near retirement. They, the BD's are pushing for a near virtual Lock Box of money in their care, but I don't think in the end these issues will hold water. Let us face it, the NASD is not the AMA! I would love to be in a courtroom listening to a BD reprensentatve or a regulator, how people loose control of their money once they place it in a Stock or MF!
One of my favorite expressions, "Lock up this years Gains in a Safe Account!".
How Do You Sell Annuities
Linear Mode
