Money Magement

J-Ro · 03-18-2009, 08:32 AM

I was wondering if anybody had any money management tips for new agents? I read on here somewhere that its a good idea to open an account for charge-back funds (15% of commission?). I also plan to open a tax account for FICA and self-employment tax. Any other suggestions?

Markingriffin · 03-18-2009, 08:55 AM

Originally Posted by J-Ro

I was wondering if anybody had any money management tips for new agents? I read on here somewhere that its a good idea to open an account for charge-back funds (15% of commission?). I also plan to open a tax account for FICA and self-employment tax. Any other suggestions?

I have set up an account with all my life companies to hold 10% of my earnings for debit balances. It really helps me to do this.

emptyeternity · 03-18-2009, 09:08 AM

That is smart, I thought about the chargebacks, If I was really disciplined, I would stick what I dont reinvest back into a 30 day CD, make some interest off of it, but I never thought of a good percentage to throw in

SportsNut · 03-18-2009, 09:11 AM

Best if you could restrict yourself to live on 25-30% of gross comm... Deposit 50% for taxes and chargebacks, and use the other 20% for leads... If you follow this formula you will soon see your income rise... both because you will need to make lots of money in order to live on the 25-30%, plus if you spend 20% of your gross income on leads, you will be busy...

Markingriffin · 03-18-2009, 09:12 AM

UHL gives me interest on the money they hold for me to go against my debit balances.

I can't tell you how many times this has helped me.

Chargebacks is part of this business. It is going to happen. Why not have some kind of insurance against it.

emptyeternity · 03-18-2009, 10:24 AM

You just gave me an idea mark! Chargeback insurance LOL

Markingriffin · 03-18-2009, 11:24 AM

Originally Posted by emptyeternity

You just gave me an idea mark! Chargeback insurance LOL

The companies will think more of you if you set this up with them. It shows them that you are trying to do all the right things and care about debit balances.

I've also had them not take the full amount of the debit from my next check and just use the acct or wait for the acct to build up more money.

We all have chargebacks. I just can't afford for them to wipe out all of my next check.

DJM · 03-18-2009, 11:39 AM

Originally Posted by Markingriffin

UHL gives me interest on the money they hold for me to go against my debit balances.

I can't tell you how many times this has helped me.

Chargebacks is part of this business. It is going to happen. Why not have some kind of insurance against it.

What kind of interest do they pay you Mark?

Also, does anyone know any other good health IMO's? who does everyone use?

jjjtrio · 03-18-2009, 02:20 PM

What about setting up an online money market account to generate more interest on your money. I know some MM give you plenty of access to your money, with lower rates but i'm sure higher than 30 day CD.

DJM....Look into www.ihiaa.com for all info in the health field.

DJM · 03-18-2009, 02:44 PM

Originally Posted by jjjtrio

What about setting up an online money market account to generate more interest on your money. I know some MM give you plenty of access to your money, with lower rates but i'm sure higher than 30 day CD.

DJM....Look into www.ihiaa.com for all info in the health field.

I use a local bank, I have recurring 7 day CD that lets me have access to my money 5 days of the week. it pays 1.49% interest. It has been good for me.

sman · 03-18-2009, 02:50 PM

If you go as earned you don't have to worry about chargebacks.

Amber Scherloz · 09-30-2009, 02:37 AM

Self discipline is the main key on managing money well. I just put into my mind that I won't spend more than what I can earn.

Norwayguy · 09-30-2009, 09:50 AM

Originally Posted by sman

If you go as earned you don't have to worry about chargebacks.

sman, I would say that statement is about 90% correct there are some companies that if a policy terminates within 6 months they have a 100% chargeback and in the first 12 months but longer than 6 months a 50% chargeback....these are flexible premium annuity companies and I hate the policy but in certain cases you must use them.