22 Years Old and My Ears Are Open

[Norwayguy]

I will give you completely different advice than most posters on here.

Giving up my securities licenses was the best thing I ever did in insurance. I believe Peter, Norwayguy, has similar feelings.

Very very very very true. But I came to that decision on my own that I preceded to offer index products my B/D would not approve and I was tired of being an independent contractor but told what I could and could not do in my nonsecurities business. Finally for me my last stop I was a registered branch it was my first audit ever where I had to provide a person hired by my B/D access to 6 months of my bank records.

 

[Hoorah55]

its interesting you say that, because I've heard opposite arguments to keeping and selling only securities related products whenever possible. The idea is to build residual income through mutual fund investments. My mentors always preach securities products (annuities when its a good situation, mutual funds)

..but, I'm curious to hear more on why you think giving up a securities license is a good move? Is it better to focus on one thing (insurance) and master that product?

 

[VolAgent]

its interesting you say that, because I've heard opposite arguments to keeping and selling only securities related products whenever possible. The idea is to build residual income through mutual fund investments. My mentors always preach securities products (annuities when its a good situation, mutual funds)

..but, I'm curious to hear more on why you think giving up a securities license is a good move? Is it better to focus on one thing (insurance) and master that product?

I'd like to meet the RR who is making a living selling A shares to middle class America. Between Dave and Suze, index funds, on line brokers, and wirehouse reps putting people in wrap accounts, I seriously doubt there is anything left for an RR to go sell mutual funds.

Now, you could do wrap accounts and managed money, but you will need your 7 and 66 or 65 for that.

JMO, but middle America is not buying mutual funds anymore, at least not from RRs. They are putting my in their 401(k)s, in the bank, buying from Etrade and the like, using a wirehouse rep for a managed money account or possibly doing an indexed annuity. That is if they are even saving at all.

 

[WinoBlues]

I believe he started at Primerica. Assuming his mentor was at Primerica.

I'd like to meet the RR who is making a living selling A shares to middle class America. Between Dave and Suze, index funds, on line brokers, and wirehouse reps putting people in wrap accounts, I seriously doubt there is anything left for an RR to go sell mutual funds.

Now, you could do wrap accounts and managed money, but you will need your 7 and 66 or 65 for that.

JMO, but middle America is not buying mutual funds anymore, at least not from RRs. They are putting my in their 401(k)s, in the bank, buying from Etrade and the like, using a wirehouse rep for a managed money account or possibly doing an indexed annuity. That is if they are even saving at all.

 

[Hoorah55]

Well, when I started in 2010 I was under the leadership of a RVP/manager named Mike Shaldone, (hope the spelling is correct). He opened up one of the first PRI offices here in Sacramento, CA and was known as the 3rd highest seller of mutual fund investments in the company for the year I knew him. Afterwards, he left the company for reasons my upline mentors won't openly discuss...he just 'vanished' and left no goodbye message.

And i totally agree that selling front end/class A mutual funds to middle class america (75k or less to invest) is a terrible idea. Same goes for overpriced term insurance. Somewhere along the line my uplines' never told me, or forgot to tell me these things. Its for these reasons I want to sign on with a different company with more options and products and not a one-size-fits-all mindset.

"They are putting my in their 401(k)s, in the bank, buying from Etrade and the like," Yes, I agree with that. For people my age ill even add that they are funding roth IRAs. Though.. putting money in the bank seems like a loosing bet because inflation is somewhere around 4% (correct me if Im wrong?) and bank savings interest rates are below 1% at best (correct me again if banks can do more than that).

 

[Norwayguy]

its interesting you say that, because I've heard opposite arguments to keeping and selling only securities related products whenever possible. The idea is to build residual income through mutual fund investments. My mentors always preach securities products (annuities when its a good situation, mutual funds)

..but, I'm curious to hear more on why you think giving up a securities license is a good move? Is it better to focus on one thing (insurance) and master that product?

Nothing wrong with that approach what Vol and I have found is it is difficult to do both because the products really are the opposite of each other. When you sell a security you are selling blue sky (what great things it can do for you) when you sell insurance you are selling guarantees against uncertanties. I was a registered rep for over 10 years and I built a nice book and I loved 12b1 months more and more every year. But when I left a semi captive position and had to start over it just didn't seem worth it the inability to be able to put a letter together detailing our last meeting with out the approval of my OSJ the hectic trouble it seemed with GM last B/D getting the approvals for my customers exchanges before 4pm some little things. Technically I still hold my Series 6 for a few more weeks before my 2 years of inactivity is up.

 

[Hoorah55]

"Nothing wrong with that approach what Vol and I have found is it is difficult to do both because the products really are the opposite of each other."
But they can also be compliments to one another as the company Im with now preaches: buy term, invest the difference. I don't wholly agree with that motto, but an agent can do a pretty easy persuasive conversation to get someone to buy both securities and insurance products in the same deal. It's a common/normal day in the office for my uplines to do that.

"I'd like to meet the RR who is making a living selling A shares to middle class America."
I'm not sure if Im allowed to throw out names, but we had an RVP/manager who was the 3rd ranked agent for selling securities products in the entire company for the year and a half I knew him. He was the top guy in our office, like the Godfather.. but.. for no reason at all, he 'vanished' and was never heard from again by any of my uplines. I'm not sure if he retired because of his AUM, or if he switched companies because of better competition..but its strange to have a broker/RR vanish into thin air like that. How he sold so many class A shares? I don't know, he was a very charismatic person.

Do you guys know of any good books that are related to the insurance business or the salesmanship area?

 

[Hoorah55]

..truthfully, instead of going for a series 7 and 65, I was going to go straight for my CFP either this next year or the year after. Kaplan has been my 2nd college outside of CSUS learning about the series 6/63, I think they would have a very good CFP program if its anything like the experience I've had in the past with them. It's a big challenge, but the earlier I start, the better off I will be in the long run. That's the theory I'm betting on.


"JMO, but middle America is not buying mutual funds anymore, at least not from RRs. They are putting my in their 401(k)s, in the bank, buying from Etrade and the like, using a wirehouse rep for a managed money account or possibly doing an indexed annuity. That is if they are even saving at all."

This is true, which is why I want to learn more about 401ks because sooner or later they will have to switch over to annuities or other retirement vehicles, right? following the tide of baby boomer generation, its a 15 year wave to ride. As for kids my age, I think a roth IRA is the best option hands down to teach savings. I don't see mutual funds as a huge opportunity as annuities and roth IRAs are in this day and age.

 

[Ann H]

Be yourself and be good at it. If you are 22 years old, and you've learned this much already, that's a winning trait. If you're 22 years old and you won't be suckered into something unethical, it's a high quality trait. Wanting to fully understand your product to lead people correctly is a quality trait.

Those traits will last a lifetime if you counterbalance for your weaknesses. SWOT analysis is Strengths, Weaknesses, Opportunities, Threats.

As mentioned before, a major weakness for analytical types is that they never get started. So team up with an experienced sales person who splits the commission with you - free training while earning a commission, yet no fear of the client buying the wrong policy.

You have lots of Opportunities there with all those licenses. No 22 year old needs that many. You need real experience, not just licenses & degrees on paper. Focus, son. Pick one or two and focus hard. Let your agent friend do the cross-selling, but you focus on a few products that you'll learn well enough to sell alone. You need to make an income to survive the 3-5 years it takes to build a solid book of business.

Your biggest Threat is that you'll starve before substantial income rolls in. Be a big fish in a small pond rather than trying to catch all the fish. One of your other posts mentioned that you know quite a bit about sales. Get on the phone and start setting appointments. Let your agent friend worry about the experiential knowledge. Get clients, set appointments, close sales with him, and you'll be developing experience along the way.

Good luck. I truly enjoy hearing from a young person that has solid ethics and a willingness to learn.

 

[GDIAgency]

wow, that was a bit hard to read.... Sorry... no you are not on the right path based on what you have shared... but I also dont agree with anyone saying you are over anylizing, etc.. heck I can't even spell that word... lol...

but I do agree joint work is good, and salesmanship is good,,, but action is needed... Google: Insurance Salesmanship

some good free stuff there to point you in the right direction...