Insurance Agent vs Financial Advisor

[Marker77]

Best decision I ever made was to let my securities license lapse! I used to try to be a jack of all trades thinking I was actually helping my clients. There was a time when I stayed away from the word, "Insurance Agent", thinking that they would view me better if I said, "Financial Advisor". I was wrong!

Now I focus my energies on one line of insurance and I do so much better financially and of course, as some have added, no headaches, compliance, reporting, and extra fees, associated with being a registered rep. Not getting the phone calls when the market tanks is nice too.

One more reason ,is what always concerned me was, the hungry attorneys that are looking for Financial Advisors to sue! We will see a major rise in lawsuits because no one will take responsibility. That is one reason less people are going into medicine and will be the reason some will shy away from being a Financial Advisor.

 

[LGilmore]

I have to say the securities side of my "independent" business feels so much like "employee" that it has given me pause to consider the worth of the business.

You are called independent and 1099'd yet.... to do anything requires permission and approval. I have yet to figure out how this industry is able to get around the IRS rules on independent contracting as it seems from top to bottom you're an employee.

 

[espressoguy]

My 7 & 66 expire in November. When the company I was with heard I was back on the market, they let me know I was more than welcome to come back. Ummm. . .no thanks.

 

[Delta76]

It was a huge sigh of relief to finally get out from under compliance, plus I felt better about business in general being able to tell prospects I was an insurance broker versus a "financial advisor/consultant".

 

[Norwayguy]

I am currently securities licensed and I am trying to wind it down....once it hits less than 25% of my income I'm going to let it drop...Someone else mentioned that your an independent contractor 1099'd and my contract initially stated that I owned the client so if I change B/Ds I could take the clients with me.....Now even though its still in the contract those wonderful privacy notices the company sends out and FINRA state its a violation of the clients privacy to take confidential info with me as I walk out the door...

I'd drop my license today except it makes up 80% of my income and I can't afford that big of a drop right now.

 

[BoomBoom68]

I know this is an old thread; however, I am in the process of considering a career change. I have been in mortgages for the last 7 years and have seen my income go from a high of $180k to around $60k. I'm in the final stages of interviewing with Merrill Lynch. The job is a $70k base, but the salary goes away after 3 yrs ... IF you make it that long. There are hurdles that have to be met every 3 monhs. If you get behind in the hurdles, you are fired and the accounts you did gather get dispursed to the other advisors in the office. I was recently contacted by a Farmers recruiter and i ave an initial interview lined up next week I am wondering if insurance sales is a better way to go. Has anyone one the wirehouse route and ultimately ended up in insurance? If so, can you elaborate on your experience? Any other input/thoughts would greatly be appreciated.

 

[b61mack]

boom boom,where do you live, merrill lynch would be like the ny yankees, farmers would be triple AAA ball. use the search function. you will read alot about farmers, if you have the confidence in yourself,go merill lynch

 

[BoomBoom68]

Yes, I realize Merrill is a big name. I'm not saying I woud end up at Farmers, but that recruiting call made m think. Maybe reach out to a Pru, NYL or NWM. Oh and I'm actually in South Jersey near Philly so I'm a die hard Eagles and Phillies fan. Anyway, at Merrill we can do insurance and mortgages in addition to investments, but you get paid dick on those. To survive at Merrill you need to accumulate assets under management and LOTS of them - 30 million under managemnt after 3 years. I am just starting to second guess. I think there are more people that need insurance these days than have substantial investable assets. I guess I am looking for some perspective from those who have been at a wirehouse and transitioned to insurance or those who are currently in the insurance business to open my eyes or give their thoughts.

 

[xrac]

Farmers is like Class A not Triple AAA in my book.

 

[BoomBoom68]

Any input as to your "major league" companies? Top 5?