Anybody get the email from Key Financial?

[sman]

I believe that study only addresses people who try to time the market.

John,

They do have a study about market timers. However, the original study I mentioned spoke specifically to investor behavior. Many investors get emotional and make poor decisions because of greed and fear. That has nothing to do with timing the market. Since mid-December I've received many calls from clients invested in the market. They are concerned. Several wanted to move to a money market. I think we are near the low end of the downturn (unless we get some additional bad news). To move to a money market now only guarantees the losses. Usually when a person gets fearful of the market and moves to some type of cash position (such as a CD or money market), they generally miss out on the upswing of the market. If they ever do get back in, it's usually near the top of the upswing. And we start the cycle all over again. They aren't trying to time the market. Their emotions are controlling them and, as I said, causing them to make poor decisions. My job as an advisor is to make sure I do everything I can to prevent the investor from harming themselves.

 

[Crabcake Johnny]

Well stupid is as stupid does. The same people who buy high and sell low are by no mean candidates for other financial vehicles - they are out for quick money.

The best thing for people do to is payroll deduction into their 401K as their primary investment tool. It's dollar cost averaging at work - not market timing. Max the 401K, then start the bidding on where else to place additional money.

 

[sman]

Well stupid is as stupid does. The same people who buy high and sell low are by no mean candidates for other financial vehicles - they are out for quick money.

The best thing for people do to is payroll deduction into their 401K as their primary investment tool. It's dollar cost averaging at work - not market timing. Max the 401K, then start the bidding on where else to place additional money.

Glad to know you've never made an irrational decision John. If it were only as simple as you make it out to be. Heck, you've seen it over and over in the health insurance field. How many people make irrational decisions no matter how much education you give them? That doesn't mean they don't need health insurance. You can survey one million people and ask if they would prefer buying high and selling low and you'd get a 100% response rate of "NO". But that's when emotions aren't involved. It's amazing what happens to rational behavior when someone sees $250,000 drop to $200,000 in 2 months time. Sound reason goes out the window and they just want to "stop the bleeding". That really makes an easy sell for an index annuity. But that doesn't make it the right thing to do.

I believe I've heard you discuss on this forum that you really don't invest money for people. If that's true, how could you speak to investor behavior in up and down markets? Other than what you read of course. I've dealt with it personally and I can assure you irrational behavior exists and it's hard to manage at times. Just as the person who is adamant, no matter what you say, that their MEGA plan is the greatest thing since sliced bread. You can throw all the proof at them that you want, but they just get irrational at times.

 

[Crabcake Johnny]

The only thing I'm against is the original post - letters or emails to agents bashing investments in order to hit their agenda of boosting EIA sales.

You can dig up legitimate data for or against any type of investment vehicle from stocks to bonds to CDs to perm life. Everything has its positives and negatives.

What I disagree with is insurance agents with zero financial training and skewed stats sitting down with people and scaring them into thinking life vehicles are the answer.

Nothing is "the answer." The only answer is a properly designed and allocated portfolio designed by an industry expert - someone properly licensed and trained to give advice.

This also pertains to health. I talk to health insurance agents bashing HSAs yet can't tell me anything about them.

Another point to make - where do health agents learn about HSAs? Where do life agents learn about CDs, 401K's and equity investments?

We have agents - both life and health - giving clients advice and in many cases have little to no training.

I've spoken recently with a few agents trying to get me to sell annuities. I get solicited often. 2 of 'em recently told me how much money they were making. I asked both a few very detailed questions about the annuities they sold - both crapped out.

 

[sman]

Can't say I disagree with anything you said there John. That was my point in the OP about the info Key Financial sent out. It is definitely skewed AND inaccurate. Yet, you will find agents that will use this very data to sell an index annuity.

 

[Crabcake Johnny]

8 hours a day for 5 days of training. I had to watch both video training and be trained by a senior rep - then after 40 hours of training I had to take a test - took me over 3 hours about the product - 80% to pass.

After I passed the test I had to role play with my manager who rated me on my product knowledge - after that I had to tail a senior sales rep for 3 days watch him present and go over everything.

And this was all to sell Beemers. Every time I sold a Beemer the client got a customer service call.

Two weeks of in-class training - then a test. Then we had to go an appointments with a senior rep for one week and split commissions. After that we had to practice pitch the manager. After all that, and you passed everything you could sell on your own.

And this was for Century 21 Cabinet Refacing. Every time I sold a deal the customer got a customer survey call.

For this field I got appointed with all the carriers in MD. 80% would not send me a sample policy. 100% would not formally train me. 3 bitched with me about sending brochures.

None of my carriers require any type of formal training, none check up on sales tactics, and could really care less.

I'm for mandatory product training - every carrier should require all new agents to complete a course on their products.

 

[slushhhpuppie]

Another point to make - where do health agents learn about HSAs? Where do life agents learn about CDs, 401K's and equity investments?

We have agents - both life and health - giving clients advice and in many cases have little to no training.

Absolutley. There is nothing I hate more than bashing the other guy infront of a client but occasionally I find myself saying "The insurance agent who told you that is 100% wrong".

If insurance agents want to dispense advice and act as an "adviser" rather than an "agent of the carrier" they had better get their 65 and set-up an RIA just like the rest of us.

 

[James]

Absolutley. There is nothing I hate more than bashing the other guy infront of a client but occasionally I find myself saying "The insurance agent who told you that is 100% wrong".

If insurance agents want to dispense advice and act as an "adviser" rather than an "agent of the carrier" they had better get their 65 and set-up an RIA just like the rest of us.

Sure, that will solve all the problems in the world including obesity! You'll are just to funny.

 

[sman]

Sure, that will solve all the problems in the world including obesity! You'll are just to funny.

Maybe not. But it would likely mean that the adviser would actually know better than to use these types of tactics and numbers. However, crooks will be crooks no matter how much knowledge they have.

Lastly, what does this mean?

"You will are just to funny"

 

[Crabcake Johnny]

Lastly, what does this mean?

"You will are just to funny"