Best use of $5k annual premium for retirement cash?

[Golfnut2112]

I just watched the video and once again it’s very biased such as Don Blanton saying qualified plans are a disaster I guess he conveniently forgot about the Roth, because maybe it would hurt the sales of his selling system. The other guy talking about taxes going up and the stock market going down has never heard of bonds or inverse strategy’s. Why does the video only talk to insurance people such as Blanton, Van Muller or Kites? They are just insurance guys that will try to put a square peg into a circle. I really believe someone needs all the licenses in order to give unbiased advise which ,even then will not happen.

 

[pfg1]

Don likes Roth. CV insurance is just a tool, like many other tools in the financial world.
Yes, some folks are square peg, round hole (regardless of what they sell - insurance or investments).
Many fully licensed advisors are not, and actually like to use PLI as a tool in the right situations. IMO, its not about using either the investment tools or the life insurance tools, its about using both.
The CV life ins bucket can take the place of a bond portfolio, with no risk and a tax free death benefit. It shouldn't be used in lieu of investing but rather in conjunction with.

And I'm in agreement about taxes going up.... we're 21T in the hole, something has to give in the future. Since the spendaholics in DC can't do much right, we need to prepare the best we can to NOT have to count on them doing whats in OUR best interest....again, imo.

 

[Golfnut2112]

Don likes Roth. CV insurance is just a tool, like many other tools in the financial world.
Yes, some folks are square peg, round hole (regardless of what they sell - insurance or investments).
Many fully licensed advisors are not, and actually like to use PLI as a tool in the right situations. IMO, its not about using either the investment tools or the life insurance tools, its about using both.
The CV life ins bucket can take the place of a bond portfolio, with no risk and a tax free death benefit. It shouldn't be used in lieu of investing but rather in conjunction with.

And I'm in agreement about taxes going up.... we're 21T in the hole, something has to give in the future. Since the spendaholics in DC can't do much right, we need to prepare the best we can to NOT have to count on them doing whats in OUR best interest....again, imo.

I totally agree

 

[DHK]

Why does the video only talk to insurance people such as Blanton, Van Muller or Kites?

Kitces wasn't in there, but Tom Hegna was.

How about David Walker, former comptroller of the United States? And the other prominent economists? Of course, that's just a trailer for the documentary that David McKnight put together. The other insurance advisors are just echoing what these other more prominent figures are saying and doing about it.

You can get access to see the full movie at this link here: https://www.getoffthetracks.com/

Here's a "Real Wealth Media" webinar with David Walker. For your own amusement, you might want to learn where David Walker put most of his retirement funds.

David Walker - Real Wealth Marketing

Anyway, the REAL reason why it featured insurance agents, is because insurance agents are compensated based on asset location, not just AUM. Think about it: If you have $5 million in AUM with a client... do you care if it's taxable or tax-free? Isn't an RIA's ultimate sales "pitch" to be "We want your money here!" The good ones should talk about asset location, even though it wouldn't affect the advisor's compensation. But the strategic nature of cash value life insurance makes that conversation even more lucrative for both the agent and the client.

 

[DHK]

My best friend and I are completely at odds about politics so we agree to disagree, I know your a nice guy from the time we spent on the phone and I don’t think we will ever convince each other to change our opinions, maybe we should to the same Lol

Absolutely! At a minimum, our conversations are respectful and constructive. Iron sharpens iron, and it's been good!

 

[DHK]

Please remember whole life dividends are not guaranteed and an IUL returns are based on an index without dividends.

And absolutely, I always remember. And IUL returns and caps are based on the general account performance yield being used to purchase stock market index call options, so there's multiple factors affecting cap rates as they've been declining steadily - just as whole life dividends have, for the same reasons. Most agents don't necessarily know what goes into the economics and dynamics in insurance contracts, so at least, I think, I show some understanding of that.

https://davidkinderfinancial.wixsit...t-work-with-Fixed-Indexed-Insurance-Contracts

 

[DHK]

Why does the video only talk to insurance people such as Blanton, Van Muller or Kites? They are just insurance guys that will try to put a square peg into a circle.

I can't solve that paradigm for you. If you think they're SELLING people - and I'm using the term "selling" where you could substitute the words "assault" or even "rape"... I can't fix that for you.

Look up Van Mueller on Brokercheck. He has NO complaints. If he was doing it wrong or "fitting a square peg in a round hole", it would be showing up with a number of complaints... and he's doing between 800-1100 apps a year. There's another guy who I've followed who did similar production... but his brokercheck is spotted worse than my kids with chickenpox. Van is doing it right, even if you don't necessarily agree with it.

The paradigm shift you'd have to make... is that one could be helping their clients by predominantly selling them insurance and having a bias towards insurance.

Unfortunately, you see that bias as financially damaging to others, rather than helping them.

Insurance Pro Shop article:
IPS... Have We, As An Industry, Lost Our Way? Get Real Financial Advisor Training!

Have We As An Industry Lost Our Way?
Recently I had a discussion, with a financial advisor who was seeking help to grow his financial practice! As we talked I brought up the legendary Mehdi Fakharzadeh. I told him about Mehdi and his outstanding results over the years. And I was utterly shocked when this advisor stated that Medhi is not a real financial advisor! He is just a life insurance agent! He doesn’t sell investments!

Then Who Is A Real Financial Advisor?

Unfortunately, too many of the people in our industry think like the above advisor. They believe that a financial advisor is someone who primarily offers stock market investments or investment advice! Regrettably, they have the wrong impression of who is a real financial advisor, and what they are supposed to do! Shouldn’t a real financial advisor be helping people with all of financial concerns and problems… not just with their investments?

Consequently, until we change people’s perception of our profession, most advisors will continue to struggle to make a decent living. Why! Because, most advisors don’t truly understand their actual role as a financial advisor. So how can they help people to see the value of their services, why they should meet and why they should take action?

Interestingly, when you look up Financial Advisor, you’ll find the definitions are basically the same as for a Financial Planner. But what’s even more interesting, is these Financial Advisor definitions go far beyond just providing investments or investment advice!

A Real Financial Advisor Is Supposed To Help Average People!
Loren Dunton, the “Father of Financial Planning” gave us this great definition of a financial planner… “a highly trained, skilled and dedicated professional who helps average people to learn how to spend, save, invest, insure and plan wisely for the future, to achieve financial independence.” You’ll notice that ‘invest’ is only one of the five basic functions of a financial planner… or a financial advisor!

Thomas W. Johnson of Financial-Planning.com wrote: “When Loren Dunton first envisioned a financial planning profession, it was to serve the needs of the lower and middle classes. And not to help the wealthy make even more money. As the saying goes, healthy people don’t need a doctor.”

What’s Caused This Change In Focus?
What’s the main reason for this change in focus?
Unfortunately, the organizations that are responsible for financial advisor training are focused on investing in the stock market. Because that’s where they believe they’ll make the most money. Accordingly, there is very little financial advisor training on insurance, budgeting, taxes, etc.! And, virtually no financial advisor training on the marketing and sales! As a result most advisors do not understand that they are actually acting just like a salesperson. Accordingly, that why most people see them as a salesperson, and not an advisor! Which is one of the reasons why they are having trouble attracting prospects, setting appointments and closing sales!

Consider, if you don’t know how to market and sell your services, then aren’t you forced into taking the path of least resistance. So you are forced into taking the easy, quick sale, in order to make a living! Even when the sale may not be really in the client’s best interest! So, you end up just giving people what they want… and being a salesperson. Instead of helping them to get what they really need… and being an real financial advisor. And, it’s one of the main reasons for our compliance issues.

Without marketing and sales skills you cannot help people to see why they should meet with you. And without marketing and sales skills you cannot help people to understand the problems they face today. Or help people to understand the value of investing in the products and services you provide.

You Can Make A Difference
This change of focus is one of the reasons why we have serious financial problems in this country. As financial advisors we are not addressing the real concerns and problems that most middle-income families face today! Consumer debt is out of control. Most families have very little saved for their retirement. And, it’s not going to change unless we, as dedicated professionals, decide we are going to do something about it.

Thus, would you agree it’s time for all of us to get back to being real financial advisors? Don’t we have a duty and obligation to be actually helping people? Accordingly, we need to stop focusing on investment returns and transferring wealth. And we need to stop just taking the easy sales. Today we must focus our efforts on helping average people to reduce and eliminate all of their consumer debt. Then help them to protect their families and start saving for their future. Accordingly, that means we need to work on developing our marketing and sales skills.

So How Do We Turn This Around?
Where Do We Start?
It all starts with each of us refocusing our efforts and learning how to really help middle-income families. Then making a commitment to take an hour each day to learn or relearn basic marketing and sales skills. Which is about reading everything we can about insurance marketing and sales. Additionally it is taking industry courses and attending industry financial advisor training events to learn about the value of the products we provide. Such taking the LUTC classes, through NAIFA or our Trusted Advisor Success Training!

Remember, no matter what you call yourself, you are a financial advisor and are supposed to be helping average people to learn how to spend, save, invest, insure and plan wisely for the future, to achieve financial independence.

Let’s face it… If we, as financial advisors and planners, don’t help middle-income families… Who Will?

 

[DHK]

Btw, Norm Levine, back in 1983, talked about the notion of a "square peg in a round hole"... but our pegs are customizeable for each client. And he was one of the pioneers of merging securities with investments into a full financial planning firm/services.

The "square peg" analogy starts at about 13:00 in.

 

[Golfnut2112]

Btw, Norm Levine, back in 1983, talked about the notion of a "square peg in a round hole"... but our pegs are customizeable for each client. And he was one of the pioneers of merging securities with investments into a full financial planning firm/services.

The "square peg" analogy starts at about 13:00 in.

That is what I’ve been saying you need a security license so you be a full service agency. Believe me if you are not security licensed and you need to refer people to someone that is,based on personal experience they will become that persons main advisor.

 

[DHK]

I'm tired of saying to "watch the video".

I do what I do. If they don't like it, they can go to someone else.