401k and Financial Planning

ABC

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I have now met with a couple of Financial planning outfits.
One is a broker dealer and the other one is a divisision of an insurance company.

The broker dealer has a lot more services. They are basically offering all of the fund families and have all kinds of analytical charting. With the broker dealer I would be partnering up with someone which has pros and cons. Pros is that he/she is seasoned and any type of paper work or administration would be handled. The con is I would make very little.

Now on the company that is not a broker deal. They would not have the type of tools or resources the broker dealer has. I could still partner up with a season 401k guy and my trail would be more than double. This company specializes in assets that are under $2 million.


So a couple of questions for you guys that are active in this field.

1. Is better to be with a broker dealer with a large amount of resources and make a hell of a lot less?

2. If I were to go with the higher comp could I build up my block and then go to a broker dealer and negotiate a better deal?

3. Is it better to go with a smaller outfit that is geared toward smaller assets?

4. If Group health insurance is my main focus how much time would the 401k aspect take a way from that?



Thanks



 
I'm not much help as I'm still newer on this front, but I believe the 2 million mark is set because of the ability to offer a non-registered product and still be competitive. After the 2 million mark, the non-registered platform is expensive for the employer compared to the other options available. Someone can come along more knowledgable than myself and correct me if I'm wrong.

Another thing to be careful of, if you go with a B/D it will substantially complicate your business and way of doing business even on the insurance side of your business. For some it's a necessary evil offset by enough new revenue to make it worth while, but you really need to be doing a fair amount of business on this side to make it worth your time.

Hopefully someone with more experience in this area will be along shortly to help.
 
I'd keep looking. Some of the insurance B/Ds are very broad in what they offer. Obviously no one is going to have a selling agreement for every single financial product, but a few insurer B/Ds are quite comprehensive.
 
I have now met with a couple of Financial planning outfits.
One is a broker dealer and the other one is a divisision of an insurance company.

The broker dealer has a lot more services. They are basically offering all of the fund families and have all kinds of analytical charting. With the broker dealer I would be partnering up with someone which has pros and cons. Pros is that he/she is seasoned and any type of paper work or administration would be handled. The con is I would make very little.

Now on the company that is not a broker deal. They would not have the type of tools or resources the broker dealer has. I could still partner up with a season 401k guy and my trail would be more than double. This company specializes in assets that are under $2 million.


So a couple of questions for you guys that are active in this field.

1. Is better to be with a broker dealer with a large amount of resources and make a hell of a lot less?

2. If I were to go with the higher comp could I build up my block and then go to a broker dealer and negotiate a better deal?

3. Is it better to go with a smaller outfit that is geared toward smaller assets?

4. If Group health insurance is my main focus how much time would the 401k aspect take a way from that?



Thanks

The question is who can get you in front of MORE of the right people with a solid product(s) and training...CPS We have an effective system for doing both thru small business owners and senior direct mailings. If you are interested call 513-594-6956.
 
Tools, charts and planning software are nice but at the end of the day its about how many appointments you had and what you sold.
Since they both have some sort of mentoring program i would suggest that you lean toward which ever one will help you to get in front of qualified prospects.
 
If you're not already registered, I would avoid B/Ds like a plague. There are carriers that specialize in 401k with unregistered products. PM me if you want more info (I'm no GA so don't worry about being recruited).
 
Thank you for the feedback.

When prospecting.
I have been in the health insurance business for 11 years now. I specialize in employee benefits. My retention rate with my client is in the 90% range. I don't count clients that go bankrupt in that %.

Anyways
Most of my clients have been with me over 5 years so I have established strong relationships with them. These relationships are very valuable. At this point I have groups where the employees are calling me thinking I handle their 401k.

So to be straight forward I think I could put together anywhere from $4 million - $10 million in assets in less than 18 months.

So if I choose to go the 401k route I am looking for the best outfit to hook up with. My current business would stay separate.

I am going to make a decision on this in the next 3 months.
 
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Thank you for the feedback.

When prospecting.
I have been in the health insurance business for 11 years now. I specialize in employee benefits. My retention rate with my client is in the 90% range. I don't count clients that go bankrupt in that %.

Anyways
Most of my clients have been with me over 5 years so I have established strong relationships with them. These relationships are very valuable. At this point I have groups where the employees are calling me thinking I handle their 401k.

I am am broker....Their is a company and training now available for reassigning company 401k plans, we will administer for them, the AOR will retain all employee information and 401k balances for cross selling purposes..contact me at 513-594-6956.

PS the AOR receives 25 points on all 401k conversions$$$

So to be straight forward I think I could put together anywhere from $4 million - $10 million in assets in less than 18 months.

So if I choose to go the 401k route I am looking for the best outfit to hook up with. My current business would stay separate.
 
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