ING Financial Partners "Career Preview"

[briko3]

Re: Ing

That was helpful Briko - thanks! Anyone else have anything more meaningful to add?

OK, you missed the point. Recruiters will make this business seem easy. It's not easy. I just don't want you to go in thinking that it's as easy as they're making it sound. Think of HOW you're going to get 2 mill under management and get 30 people to pay $500 for a financial plan. Most people don't want to pay for a financial plan. Most people that probably NEED a financial plan CAN'T pay you that much for one. At the end of the day, this business is about seeing people that have money to buy what you're selling. And don't think it's the same as the mortgage business. This is an intangible product that the buyer doesn't technically use. There's a reason why we get high comissions in this business. Do you have wealthy friends that trust you? Are you going to cold call?

These are all things that recruiters intentionally leave out. Hell, I can make $100,000 seem easy. Just get enough people per week to commit to a total of $160 of monthly premium. That's a husband and wife. ($80/month per policy at a 100% contract) $160x 12= $1920 per week of annual premium. Multiply that out for 52 weeks and you have.....$99,840. Sounds easy right?

Bottom line...take what a recruiter says with a grain of salt. Don't forget that 95% of the people that enter this career drop out. If it were easy, that number would be 0%.

I'm actually kind of proud of my first post for summarizing all of this into one sentence. I might sound cynical and you might brush this off because you're not in the business, but I guarantee you that anyone successful in this business would have gotten there quicker if they had thought it through this way.

 

[Mattschmidt]

Be careful thinking that it's easy to be a fee based financial planner, and that gathering assets is that simple....I have been a Financial Planner for 7 years, and will tell you first hand, that people might pay you a fee the first year, but it may be 3 years down the road til you get in front of them again.....as far as gathering AUM, you may be able to do it...But if you are receiving 1% commission on these assets, it will take 5 years before can live off it. Realistically, you are going to have to sell Life and disability insurance. Setting up alot of automatic investment programs, and occassionally you will get the big roll over....Just don't buy into what the recruiters say, as they just want you to sign with their company.

 

[Norwayguy]

I want to echo what everyone else is saying...If these numbers are good and is based on a low tier producer why are they still recruiting? ING has been in the 403(b) market forever.

Having said the above, if you can stick it out 403(b) business is great its payrol deducted most of my school year meetings are at the schools during the school day or shortly after a couple of years into the business you will roll out of bed and have a dependable income stream to rely upon, yor clients get raises pretty mch every year (unlike many in the private sector).

But nothing makes ING special...I offer Great American, ING Reliastar, North American, Midland National (yeah I know same company but different slots), Life of the Southwest etc.

I have found with the new regs things take longer transfers require approval, carriers are taking longer to process surrenders for contract exchanges and the new tactic is to say they don't have the list of approved signers for the district ( I say its a tactic because I as their rep have provided this info and I typically include a copy with the transfer paperwork).

The other hard part about the 403(b) business is it is harder to get in front of people...Talking with reps that have been working the market for 20+ years they tell me they used to go sit in the teachers room and talk to the teachers (these days I have to be buzzed into schools and they will only let me in if I have an appointment) I used to get a lot of appointments via mailbox stuffers (fewer and fewer schools allow these, I can still mail them in but it lowers the return rate and increases the cost dramatically) I will admit I've only done one benefit fair but from talking with other agents that where there the results where typical Employee enters room goes straight to the tabl to sign up for Health and Dental and walks out. I spent 4 hours at this one fair and spent most of my time talking to the Horace Mann, Edward Jones, AIG and other 403(b) reps.

And thats the last thing to consider what you will be selling really is no different that what everyone else is selling and they will know the rules, and regs better than you and are already entrenched.

This is a great career but many fail. I've never been a mortgage broker so I am generalizing here but many people want to buy a home and they know they need a mortgage or have a mortgage and want to refinance they look around for the best deal....This business is different people don't pick up a phone book looking for a 403(b) rep or someone to handle their retirement account they have to be found. A typical appointment I would have would be finishing up in the teachers room and they tell me they are very happy to have met me and started this up, they have been meaning to for a long time just didn't kno who to talk to:

The whole time they are telling me this I'm looking at the wall behind them and there are 4 large posters for the Horace Mann, Metlife, AIG and Edward Jones Reps. The client has a planner from Horace Mann, a pen from Met Life as we walked out of their classroom to go to the teachers room I noticed a plastic apple from Great American...I'm sure you get the point you need to get in front of these people and grab their attention otherwise it is rare for them to actively look for someone and if they look they typically end up at their bank.

Oh yeah and think about your first "interview" in how many other careers do you start off in a group interview? Its because most of these companies hire agents in masses, train them in classes and then fire thier asses...They only thing unique is they provide according to you a small base salary...This is unusual but would actually scare the crap out of me...because it will take some time for you to get up to speed and these payroll deducted accounts you set up will not bring in the big bucks, How long do you think they let people linger at least of full commission they have no expense with the agent...Read the contract carefully.

 

[DHK]

I have been in the mortgage business for the last 7 years and have seen my income go from a high of 190k to a low of 40k and now this year will be around 60k. There is nothing I like about this business anymore so I am considering a career change. I had an "career preview" today with ING Financial Partners (4 people were in a conference room for a basic information session). Their deal is for 2 years they will give a small base salary and they went through the compensation of a "low tier" producer to give us bare minimum income expectations. Based on generating 30 financial plans per year at 500 per pop, acquiring 1 million under managemnet per year, then 300k in 401k or 403b business, and another 1 million under management (performance based - you would get 1% of the AUM). Year 2 another 30 accounts and by year 5, after some fallout, you should have 80 accounts.

Plan 1MM 300k 1MM
YR 1 7,500 40,000 12,000 10,000 = 69,500/yr
YR 2 12,000 40,000 12,000 20,000 = 84,000/yr
YR 5 30,000 40,000 12,000 50,000 = 132,000/yr

Thoughts?? Fair expectations?

Always ask yourself "Compared to what?"

1 million under management is NOT MUCH... compared to a Merrill Lynch rep who needs $15 million under management during their 1st year.

Who are you going to sell these plans to?

Who are you going to be calling?

Remember that ING is known for its Online Savings Account... not necessarily as a financial services company. So, if you're cold-calling and representing ING, you'll get quite a few people who will say "who?". Compared to Merrill Lynch (okay, BofA) and they'll already have an idea of the kind of work you do.

Compensation is EASY to model. The question is: How will you find people to sell and advise so you can make money?

Are they expecting you to do a "project 200" to get referrals and work those referrals?

How will you market yourself?

How would you feel about holding yourself out as a fee-based planner and charging a fee to sell your proprietary products? Remember that charging a fee means that you are a FIDUCIARY and must have the CLIENT'S best interests in mind, not your own. Selling proprietary products doesn't look like you have your client's best interest. (This was why I left American Express Financial Advisors - now Ameriprise 7 years ago. Looks like the same model.)

 

[0b1kanobee]

DHK this is something totally different. He doesn't have to do a project 200 or anything like that and he will not be a fee based adviser. If anything, spend more money prospecting and never collect a fee. His original posting is a little confusing.

 

[Norwayguy]

DHK this is something totally different. He doesn't have to do a project 200 or anything like that and he will not be a fee based adviser. If anything, spend more money prospecting and never collect a fee. His original posting is a little confusing.

His original post said to do 30 financial plans for $500 per plan...That is a fee done under a Series 65, and typically when someone says $1 Million in AUM you are talking fee based.

 

[0b1kanobee]

His original post said to do 30 financial plans for $500 per plan...That is a fee done under a Series 65, and typically when someone says $1 Million in AUM you are talking fee based.

My bad then. In Florida, I have never seen a securities ING guy in the schools, at least not with ING. Must be different where he is. They usually just offer fixed business. AXA is the main group offering VA annuities here.

 

[Norwayguy]

My bad then. In Florida, I have never seen a securities ING guy in the schools, at least not with ING. Must be different where he is. They usually just offer fixed business. AXA is the main group offering VA annuities here.

Its funny you say that...As I'm looking at the Approved carriers I'm noticing a trend that the carriers are dropping fixed and just offering VAs. Which is smart on the Insurance Company side... They offload the investment risk and make good money on fees charged to the client and kickbacks from the fund families not to mention the reserving requirements.