Advice about captive opportunities

[salyons]

Hi everyone,
I am a 30 y/o single (well, not married) woman looking at new opportunities. I have been working in managed care for various medical clinics for the past few years. I have an MBA, but am not using it at all right now. I have been looking for a job for quite a while now, and it would seem that all I am getting are agent/personal financial planner opportunities. I am very interested in running my own business and being directly responsible for my own success. I have interviewed with Bankers L&C, Farmers and American Family, as well as Ameriprise.

My first question is this: if I sign on w/ Farmers, they offer financial assistance for 2 years as long as you make your numbers. If you decide a year into the deal that it isn't for you, is like you are stuck with a loan that you make monthly payments on? (just want to understand the worst case scenario)
My second question is, after you have completed your first 2 years, if you decide to go independent, is it like starting from scratch again? Or is much easier with all of the experience you have gained. I am assuming you could not walk with the policies you signed.

I am feeling very antsy to get out of what I am doing now, but I don't have much of a financial cushion. I have about $9000 available if I cash out my pension when I leave my job. I live in Portland, Oregon. I am a great people-person, with a strong work ethic, but I have been known to make very rash, impetuous decisions in the past.

 

[xrac]

I would also talk to NYL, Mass Mutual, NWFN, Metlife, Guardian, on the life/financial planning side. Others can recommend P&C companies to consider. Here is the best advice, don't be antsy, explore all options before you make a jump.

 

[Chkndinner14]

Hi everyone,
I have about $9000 available if I cash out my pension when I leave my job. I live in Portland, Oregon. I am a great people-person, with a strong work ethic, but I have been known to make very rash, impetuous decisions in the past.

Don't cash out your pension! With taxes and penalties, you won't even get close to $9000. You would be better off borrowing the money even thought this too is not a great idea.

Take your time, if you have potential, these positions are available whenever. Start part time on a brokerage contract and see how you like the business.
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[patch36]

check out First Command Financial Services

The pay you $4000 to get licensed up and another $4000 after you finish their 2 week school in Fort Worth. Good people, military oriented but breaking into the civilian market. They will also give you a book of existing customers to work. May be more ambitious than what you have in mind, but with your education this could be a good opportunity.

 

[patch36]

I started out as a Farmers Agent. I quit to go independent after a year. I hit my numbers, won their awards and plaques, but it was a grind doing P&C and starvation for the first several years at least. I did have to pay them back the advances that exceeded my commissions, but I immediately was making a lot more money as an independent selling annuities, life, ltc and medicare.

 

[salyons]

I started out as a Farmers Agent. I quit to go independent after a year. I hit my numbers, won their awards and plaques, but it was a grind doing P&C and starvation for the first several years at least. I did have to pay them back the advances that exceeded my commissions, but I immediately was making a lot more money as an independent selling annuities, life, ltc and medicare.

patch36- Do you think it was a worthwhile path to take to where you are now? And by "starvation", you mean . . . (trying to get a better picture of what I should expect as far as earnings my first 2 years)

 

[patch36]

If you can move in with another agent and share expenses, ect you will be better off. After office expense and with the advances and stuff maybe $25k, but it depends on how much life and securities you can sell. The P&C does not pay crap and are really just something you build up to pay the bills.

I had a lot of business and management experience before becoming an agent. I learned from Farmers, but for the most part it was a waste of time in relation to what I do now. It takes time for the right opportunity to come along, and in the meanwhile you earn a little and learn a lot wherever you can.

 

[djs]

The nice thing about the insurance business is that there is enough different types and styles of things to do that you can find something to fit you pretty well.

When I decided it was time for a career change, I wanted to be a financial planner (leaving high-tech, as an engineer / product manager). After talking with a few financial planning companies, I became very disenchanted with the opportunity.

Turns out, I became a securities licensed P&C agent, and do pretty well. I'm able to do what I wanted to accomplish as a financial planner, but in a more complete way. I have a great lead in product, since you have to have P&C coverage on your home and auto anyway.

For a brief time before starting down the P&C route, I sold health insurance, failed miserably at it, even though I now do pretty decent with it on top of my P&C business.

Depending on your background, your financial situation, your resources and support, the first 2 years as an agent is EXTREMELY tough financially. Some people have a break out year, but the truth is, this is a residuals business and it takes time to build those residuals.

You can be extremely successful. You can be extremely unsuccessful. Many end up on the side of the insurance agents road, some get through the first few years and do okay for themselves. You will do as well as you want to, whether its a 25K a year salary or a $300K a year salary. It really is your choice (one takes a bit more work).

Your MBA will do you no good. Not a waste of time, but have you ever asked your insurance agent where he got his degree from?

Unlike Patch, for me P&C is great. It pays the bills, month in and month out. You'll burn out writing it after a while, but thats because it is easy to write, you just want to do something more (at which point you hire a licensed admin to do the grunt work). Hardly a week goes by that I don't write at least 10 policies, without breaking to much of a sweat. Many P&C agents have a hard time writing 2. I don't know why, I wrote 4 today alone, which isn't at all unusual.

Just remember, do what you want, not what other tell you to do. If you have a passion for what it is you do, you'll succeed.

Dan

 

[peterlai]

Djs,

I am very impressed that you can write at least 10 P&C policies in a week. I belong to the other camp and struggle to write 2 policies a week. What is your secret?

 

[patch36]

I hated it because I too only wrote 2 a week Some weeks were better, but not most. P&C pays the bills and the other stuff buys the frills.

Great advice Dan.