Are you a Financial Analyst or Advisor or an Insurance Agent

Jul 26, 2008

  1. Nttwrkz LLC
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    Nttwrkz LLC Expert

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    Hey People,

    I was wondering if anyone here considers themselves a Financial Analyst or Advisor by only having a L/H or P/C? or Do you have to have a Series 6,7,or 63 or do you have to have a degree?

    I'm curious to know because I'm really interested in the becoming or being known as a Financial Analyst or Advisor rather than an insurance agent. I want to know what other steps there are to become one. I have a degree but it's not in finance. Is it more profitable to have your series 6, 7 or 63? Thanks for the input.

    Nttwrkz1
     
  2. padthaiforlunch
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    padthaiforlunch Guru

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    CFA Institute Home

    If you want to put yourself out there as an FA. Good luck being full service without at least a series 6.

    My degree is in finance and while I try to take on a consultative role, I don't call myself a financial adviser.
     
  3. Nttwrkz LLC
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    Hey, thanks for your input. So If I get my CFA, I can then consider myself a FA? Why don't you call yourself a FA? Have you increased your income considerably since obtaining your CFA and do you think by me not having a degree in finance It will be difficult for me to understand the material and are you suggesting that I at least obtain my series 6 before I can consider the CFA course? Thanks

    Nttwrkz1
     
  4. Winter_123
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    Winter_123 Guru

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    It gets complicated because it is one of those oddball areas where the non-securities licensed person can often do what a securities licensed person cannot. In many states, the terms "financial planner" or "financial advisor" are not regulated terms so insurance-licensed folks can use those titles. However, when the insurance person moves up and gets a series 6 or 7 the broker/dealers increasingly treat those as sales rep designations and will not let you use the term "financial advisor or planner" unless you are a registered investment advisor.

    The whole issue has been a complete mess with the SEC taking that position as well (under the Merrill Rule) and then the Merrill Rule recently being struck down (have not kept up with it the last couple years since I de-activated my securities license). So, I and many others had a series 7 and could not call myself a financial planner but an insurance agent could. Huh?

    Caution: Courts have held that when you represent yourself as a financial advisor you take on a higher fiduciary duty with the client even if it is legal for you to use that term. You may think that as an insurance agent you are good to go with that annuity sale just because you have done a suitability analysis. If you used the term "financial advisor" and there is a flap you will have to demonstrate that you made the best decision that a prudent financial planner would have made independent of commissions etc. Watch out.

    The reason it sounds complicated is because it is complicated.

    Winter
     
  5. djs
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    djs Super Moderator Moderator

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    I would not use the term financial advisor unless you are at least a registered investment advisor, something that is actually fairly easy to do, and does not require an appointment with a broker/dealer.

    As Winter said though, the term should be used with great care, it brings with it the opportunity for people to come after you in some new ways. Not much of an issue if you are doing the right thing, but it may be problematic if you are trying to use the title to get new business.

    Besides, what's wrong with saying your an insurance agent? I'd be proud of what you are.

    Dan
     
    djs, Jul 26, 2008
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  6. bluemarlin08
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    bluemarlin08 Guru

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    I dropped my series 7 years ago nut clients still want financial advice. I don't make specific product recommendations but help educate regarding asset allocation and how to analyze MF. I use to shy away from saying I was a insurance agent and always called myself a financial planner. I guess as I matured i became much more comfortable with insurance and clients understand i do more for them than sell insurance.
     
  7. gradyinsurance
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    gradyinsurance Super Genius

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    If you have an insurance agent's license, you are an Insurance Agent. Unless, of course, you are a CFA, RIA, or any kind of securities broker.

    Not an consultant, producer, associate, or any of the other glorified titles that people have come up with over the years in order to give people the impression that somehow you are more than an insurance agent.

    I exclusively use the title "Independent Insurance Agent". I'm very proud of that title, and can't see where any of the other names that have been created in the last few years would do a better job of explaining to your clients and potential clients what you do.

    Dave
     
    Last edited: Jul 27, 2008
  8. Bob_The_Insurance_Guy
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    Bob_The_Insurance_Guy Guru

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    I am a consultant. I consult with my clients and prospects on which Life, Health, DI, or Annuity product would best suit their needs.

    I do not do securities - that I farm out to other associates.

    You CAN be a consultant and have a Life and A&S license.

    I am proud of what I do, and it's more than just running quotes for the lowest bidder. THAT'S an agent. Someone you find in the office, for walk in traffic, like at Direct Auto Insurance.

    I'm a consultant, and very proud of it. I only sell Life, DI, Annuities (fixed and EIA), LTC, and Health.
     
  9. xrac
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    xrac Guru

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    I would consider a financial advisor to be a Registered Investment Advisor (RIA) which requires passing the 65. Based upon the questions you are asking I don't think you want to even consider getting the 65 until you have some experience and some training. If you are an RIA you are to have fiduciary responsibility and you have to know more than you do now. Get some experience first (that's my opinion).

    Here is a book you should buy and read if you are interested in being a financial advisor (The New Financial Advisor by Nick Murray).
     
    xrac, Jul 26, 2008
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  10. bluemarlin08
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    bluemarlin08 Guru

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    Bob, you are right on. I am often hired as a paid consultant to review insurance, review a company's business succession plan and review one's estate plan. Fees and insurance is how I am paid. I was recently hired by a guy that was paying 150k on various life policies but he told me any new business would go through his son in law. Charged him 2000 and we are all happy, even offered me an additional 1000 to review what his son in law recommended. I would prefer to make the sale, but I was paid well for my time.
     
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