End of the Line for me :(
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This may sound like blasphemy to many of you, but if you’re independent, consider selling some fixed or indexed annuities. They’re flying off the shelves right now, and the commissions just might keep you in the business until things recover. Look into them. They’re a respectable investment if used sparingly and in the right way. Just make sure to do it as part of a balanced portfolio and leave enough liquidity. Food for thought.
[quote=stokwiz]Man, WTF?
Misery loves company. I've been independent for years, just me, my lovely assistant and networking partners. I have no other brokers in the office so I'm like a machine, doing what I know leads to results, without distractions. This board is the window to my peers, and sometimes its depressing. Success leaves clues. There is a system that's been successful, and you just have to follow it. There can be so many reasons for failure. Being in the office shuffling paper all day waiting for the phone to ring = failure ( Used to happen to me - still does in fact. Maturity is recognizing it and getting back on the phone!) Calling residences in the era of DNC= frustration and failure Trying to sell product over the phone = failure Focusing on things you can't control, like the markets= failure listening to all the noise instead of focusing on activities like seeing 2 people a day or working to see 2 people a day = failure This is one of the best times to be in this business - you just have to see new people, get them talking, offer solutions and you will do business. If you are not successful, it isn't the system, it is you. This business sure as hell isn't for everybody, and no one was born a successful broker. You have to continually work at it, just as athletes will only get better with practice. Practice for us being appointments. The more you have the better you get. You will not only survive, you will thrive. Stok[/quote] If you aren't calling people how are you seeing them?Over the years, many people find this business to get easier. In general, those are the reps who are now in trouble. The business got easier because they had clients who had more and more assets. They spent most of their time working with their existing clients. They were able to do less work and not make any less money.
Others have found that this business doesn't get easier. They are the ones who have always spent time getting new clients. For these people, instead of the business getting easier, it just got more and more lucrative. These are the people who are going survive this market downturn and make an absolute killing when the market turns around.BondKing:
Can you enter the WS Sunset program? It's where you sell your book to another FC. After 10 years there has to be some value for the book that you built. Also what about Finet or the HD Vest platform? I think this will be a great time to be in the business if your focusing on planning. The whole country is worried about their finances and will be seeking out assistance. The key is to make it through the next couple of months. Work on the side. Something unrelated with low stress just to grab some extra cash. If you leave the business you'll probably experience less stress and do well. Good luck.Indexed Annuities? Why limit your upside now w/ a cap. Thats crazy. A VA makes much more sense and I don’t even like those. Ins Co’s will go down if the market never comes back.
These kind of statements show a lack of understanding of the product. It's like saying don't put money into CD's or fixed annuities because you are limiting your upside. Indexed annuities are for the dollars in which someone doesn't want to take any investment risk.Indexed Annuities? Why limit your upside now w/ a cap. Thats crazy. A VA makes much more sense and I don’t even like those. Ins Co’s will go down if the market never comes back.
I have done index annuities here and there for a few years. Those clients are very happy right now. We did capture initial upside of 7 or 8% for some who I started early. The rest are pretty flat, but there are no losses and still the 3% min return to them is calculating and worse case thats is what they will walk away with in yr 7, an annualized ror of 3%. I am starting to use them more now that we are destroyed in the mkt. Upside potential is there over next 5 to 7 yrs. Even if mkt in the crapper next 2 yrs then mkt may begin to recover do well. Yeah, they might do better in straight index ETF with no cap, but try selling that now with no guarantees against loss. Frankly, I am much more comfortable with clients underlying protected here. I really have no more stomach for losses either.
Why limit your upside now w/ a cap. Thats crazy.
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Thats why people lose money. Stupid and GREEDY. How about just returning the clients money with no strings attached and at worse a modest return? I can live with that and my clients def can live with that…Mr. Client, worse case scenario is we get an annualized 2% ror. Best case is we get an annualized ror of 8%. We will probably get somewhere in between over the next 5 to 7 years. Mr client, are these parameters acceptable to you? Guaranteed ret. of principal with a min 2% ROR and possibly a better return with a cap at 7 or 8% if S&P begins to recover?..answer is always yes. This is for clients who have no low to no tolerance for loss and also have the time to leave the money alone. Take to much out and the penalties are high. 10% typically allowed out per year, but up to 12% penalty if more than that.
(I use ING 7yr hold and also Jackson 5 yr hold. Products differ in an number of ways. Both have worked well.)
what if the insurance co that wrote the annuity goes bk? Nothing is gtd anymore.
Stok, Just you and the assistant ? How do you take time off or go on vacation ? Being in the office by myself to do what I do with no other people to slow me down sounds like heaven…but how do you get to step out for a while ?
BondKing, best of luck! Why not find an independent w an existing office to hook up with. Move your book over and then sell it to the independent if you want out. Get some value out of the effort you have put in. Who knows you may find with a higher payout you might want to stick it out a while longer.
what if the insurance co that wrote the annuity goes bk? Nothing is gtd anymore.
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Good question. If the insurance companies that I have done business with for clients go BK and they lose their investments, then that is likely the day I just walk away from this Fing business. I dont think I could take that one and keep on going in the biz. Let the bank take my house. We will relocate to where its warm all year round, cheaper to live and just start over.
Aren’t annuity investments backed by state pools for up to $100,000? I know we’re not allowed to use that as a sales device, but as long as you break up the clients’ annuities into $100k blocks, don’t you have some safeguards in the event of the insurers going insolvent?
[quote=Bodysurf]Aren’t annuity investments backed by state pools for up to $100,000? I know we’re not allowed to use that as a sales device, but as long as you break up the clients’ annuities into $100k blocks, don’t you have some safeguards in the event of the insurers going insolvent?
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There are state guarantee funds, and as well the insurers will tend to support each other via capital infusions or takeovers…as they have a strong vested interest in maintaining public confidence in the product and industry.
So, to me the questions at hand would be:
1.) How bad would it have to get before this ‘safety net’ would be overwhelmed?
2.) Specifically what would be protected in the VA arena in the event of a company failure? Would the ‘rescuer’ in a forced takeover likely only take over the existing assets in subaccount VA’s and the policyholders would lose the value of existing living guarantees?
This would probably be a useful topic for a new thread…I know there are folks on here who understand these issues far better than I do.
Sorry Bondking, I think deep down you know that you’ll be in a place in your life down the road one day w/ no regrets and utter the words, ‘I wouldn’t change a thing.’ I suppose you have to repay the loan? I’d be curious how that works since I’ve lost a chunk in the market.
Sorry Bondking, I think deep down you know that you’ll be in a place in your life down the road one day w/ no regrets and utter the words, ‘I wouldn’t change a thing.’ I suppose you have to repay the loan? I’d be curious how that works since I’ve lost a chunk in the market.
If you leave PCG to to ISG are you till eligibible for the envision bonus program???
There must has something wrong in this world ! We are in this situation man !
work our ass off but can't afford living expenses. Things getting more and more expensive but not the wages. work days n nights to pay off the loan that seems we can''t pay it off forever. ...............What a F**K. find another job , do wut you need to do . we are living in the world with this twisted monertary system.Don't be so sad. Because We are all the same, in the States. In Canada.