Alternative to CD's - Not an Annuity

[sman]

My last post was but one example of how I have used this idea. I guess I could have always asked this 77 year old with heart problems to apply for a WL policy so that there was no risk in his value going down. I'm sure that would have worked well.

People on this board RARELY "discuss" things. They all know more than the next person. Truth be told, many of them are probably struggling to pay their bills. Yet they are the ones who know more than everyone else. I find that amusing.

Don't worry pad, I'm not taking my ball and going home. I'll still respond from time to time. I may just keep the money making ideas to myself and let others figure it out on their own and continue to struggle to pay their bills.

Now, now. Just because people like to discuss doesn't mean you should shut up and stop sharing ideas. It took some discussion for you to fully explain who and why you are doing to for. Your last post is more explanatory than your first.

Please continue to contribute!

 

[HarryRenard]

Now, now. Just because people like to discuss doesn't mean you should shut up and stop sharing ideas. It took some discussion for you to fully explain who and why you are doing to for. Your last post is more explanatory than your first.

Please continue to contribute!

Agreed! Just playing devils advocate.



2.75% 3 year product- Can't remember the commission but I think its just over 2.5%

 

[Death Cab For Tootie]

My last post was but one example of how I have used this idea. I guess I could have always asked this 77 year old with heart problems to apply for a WL policy so that there was no risk in his value going down. I'm sure that would have worked well.

People on this board RARELY "discuss" things. They all know more than the next person. Truth be told, many of them are probably struggling to pay their bills. Yet they are the ones who know more than everyone else. I find that amusing.

Don't worry pad, I'm not taking my ball and going home. I'll still respond from time to time. I may just keep the money making ideas to myself and let others figure it out on their own and continue to struggle to pay their bills.

Next time you post, I'll be sure to send you an industrial-strenght vacuum to clear out the sand in your slit.

Lighten up, Francis.

 

[sman]

Nobody calls me Francis. If you do....well, you know the rest. Now go fit more square pegs into round holes so you can pay your bills.

Next time you post, I'll be sure to send you an industrial-strenght vacuum to clear out the sand in your slit.

Lighten up, Francis.

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2.75% 3 year product- Can't remember the commission but I think its just over 2.5%

Yep. And I have many clients who aren't willing to tie up their money for 3 years for a difference of less than 1% interest. They would just assume stay in a 12-month CD paying 1.85%. In showing them this alternative, many have moved some assets over. The great thing is, if and when annuity rates go up, I now manage the money and can move it if they wish.

Like I said, if you don't like the idea, don't use it.

 

[moonlightandmargaritas]

I just thought I'd give some folks here an idea that has been working for me. . I'll refrain from sharing ideas in the future. There seem to be a lot of "experts" on these boards.

Scott, most of the "experts" on here are in fact nitwits, who wouldn't understand the concept of "capturing assets" if it bit them in the behind.

Their best idea is "how does it fit into what I sell" - whole life - to generate a commission that will keep me in the business another two months.

Your excellent client building idea is lost on these morons.

 

[VolAgent]

Hey Vol, explain how the muni fund is a bad idea. Keep in mind, no one is recommending a person put all their assets in a muni fund. Many CD investors are looking for something better than the 1%-2% on one-year CD's. If you can show them something that doesn't tie up their money and gives them a relatively safe alternative and a potentially higher tax-free return, they will listen.

Just because you and the others don't like the idea doesn't make it a bad one.

Perhaps bad idea is a bit strong, my knock was more against the WL. Given the choices, I'd go with you and the C shares over the WL in this situation. My concern with your idea is taking safe money and exposing it to market risk. That said, for short-term money, it beats the pants off the WL. With the WL, the client has to be insurable, also I doubt there is a WL out there that you can dump enough money into and show growth in year one.

Personally, if the client needs the money a year from now, I'd probably just have them leave it in the CD. I might go look at a money market fund, but I doubt it would be worth the hassle for either the client or the agent.

My point was, there is a reason CDs are paying so poorly. They are safe. The only real winner in any of these ideas is the agent, either in commission or getting control of the money.

 

[sman]

Those who have dealt with clients that typically invest in CD's know that while they state they are concerned about their money being tied up, in reality they do nothing but continue to renew their CD's and hardly ever use the money. So in essence, they are long term investors using a short term method.

I'm simply shoeing them an option for some of their money. yes, there is some market risk. But don't fool yourself into thinking there is no risk in a CD. If they are earning less than 2% and inflation is 4.5%, they have risk.

This particular fund is an acceptable market risk for many. The dividends have continued even when the funds share price was down. So the client still receives a tax-free income regardless of the market changes.

I'd love to know how many nay-sayers on here actually have a securities license. I typically find that those that can't sell it, find a way to bash it so they look better for selling the products they have. Just one man's observation.

Perhaps bad idea is a bit strong, my knock was more against the WL. Given the choices, I'd go with you and the C shares over the WL in this situation. My concern with your idea is taking safe money and exposing it to market risk. That said, for short-term money, it beats the pants off the WL. With the WL, the client has to be insurable, also I doubt there is a WL out there that you can dump enough money into and show growth in year one.

Personally, if the client needs the money a year from now, I'd probably just have them leave it in the CD. I might go look at a money market fund, but I doubt it would be worth the hassle for either the client or the agent.

My point was, there is a reason CDs are paying so poorly. They are safe. The only real winner in any of these ideas is the agent, either in commission or getting control of the money.

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I hear you Paul. I see it all the time. I have a friend who sells nothing but index annuities. It's the solution for every situation. We've had some intense "discussions" about it. I don't dislike index annuities. I even sell some occasionally. I just don't believe they are a one size fits all product. Same goes for any product out there. It has to meet the need of the client.

I'll keep gathering assets while some on here tell me I'm wrong.

Scott, most of the "experts" on here are in fact nitwits, who wouldn't understand the concept of "capturing assets" if it bit them in the behind.

Their best idea is "how does it fit into what I sell" - whole life - to generate a commission that will keep me in the business another two months.

Your excellent client building idea is lost on these morons.

 

[arnguy]

Glad to see you back, Paul. Where have you been?

 

[URDRWHO]

I can't say a lot or a small amount of agents but in my history I have seen a lot of short term thinking.

I have always, always, always worked by the rule of helping others, do the right thing and in the long run it will keep you in business. I've seen so many (especially young - new agents) sell something just so they can pay "their" next as bill but it wasn't the best thing for the clients.

My wife has at times pointed out that other new hot shots, came flying out of the pen, making a lot of money but disappear within a short period of time.

I've made a career of what I do and it isn't just some job to pay the bills until I find my "real" vocation. In recent years my wife's job of 20 years, ended her position. She had her resume online and received a message on our answering machine from a guy that said he had a "perfect job" for her that fits her experience and pays well. She was very excited and returned the call.

Turned out that it was someone recruiting for AFLAC. He pushed very hard to meet with him. She kept telling him she doesn't like selling nor working for commission. I remember thirty years ago she did try commission sales, hated it and was quickly back into the corporate office world.

So my point is that instead of people looking at insurance sales as a career, in the insurance sales world you have recruiters that just want a warm body, you have people that who are in dire financial conditions that just need to make their next quick $dollar and it all can lead to people doing things that have short term business building....not long term business building.

IMHO capturing assets is a long term business model. It is what will give you clients that are voluntarily tied to your hip and have stayed with you for 20 years. It leads to clients that will have loyalty and even stay with you even if they could save a few dollars with another AO/HO plan. They value your service and knowledge.

Personality I don't really want the client with online shopping mentality, the client that will change for a penny.

Scott, most of the "experts" on here are in fact nitwits, who wouldn't understand the concept of "capturing assets" if it bit them in the behind.

Their best idea is "how does it fit into what I sell" - whole life - to generate a commission that will keep me in the business another two months.

Your excellent client building idea is lost on these morons.

 

[mmov1997]

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