Insurance Agent vs Financial Advisor

[Bob Klee]

Boom Boom,

I sold my last agency in Oct. '06. But I was an Allstate Agency owner with my 6 & 63. Been in insurance since 1985 & am still licensed. Let my securities license go due to complexity of keeping it and not being "in" the business.

Allstate & SF will require you to get your 6 & 63 unless they've changed lately. IMO, easier to be successful in insurance than securities. I also have a degree in finance & a certificate in Financial planning. $30 million under management in 3 years. Can be done but it is Hard to prospect these days from what I hear due to the market.

IMO, easier to do the insurance agency. But, each of us have different skill sets. So don't sell yourself short if you really like dealing with investments & such.

Be happy to chat if you want to give me a call. Built 3 agencies in 3 different states over the years. Fun stuff!

I reserve the right to get Smarter!

 

[b61mack]

nyl, pru, nwm, are all good companies. but different markets than farmers.

 

[CFP83]

I think all of us who have had an investment license for any amount of time somedays just want burn our B/D agreements and go straight insurance.

I think this conversation really comes down to do you want to run a tranactionally focused/product focused practice, or is your passion "needs-based selling"...meaning factfinding to find what a clients need are & then being able to put the solution in place no matter if it's investments or insurance. If you like the comprehensive approach then you will go nuts being limited only to solving insurance needs.

 

[DHK]

There's always the RIA-only option (Series 65).

The only thing you CAN'T do is sell variable insurance contracts or other investments for commissions.

 

[Deserwest]

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.[/quote]

I'll give you mine... I started out as a solicitor for Farmers, that lasted a few months, then with a State Farm agent for a year, learned the ropes, all that before age 21, got an insurance brokers license, and except for one failed attempt with Prudential have managed to keep my independence in tact for 27 years. If you are willing to take a haircut, a few points on commissions, you can do away with all production requirments, etc by just being a sub-agent or producer. It really is no problem to get carrier support and a competitive product line. The problem is, this is sales, nothing sells or markets itself.

To be honest, for 27 years I have been bored out of my mind. I love trading and investing ... I have a graduate degree in finance, and a good day for me starts about 5AM with some currency trading before I resign myself to servicing this load. Clients are nice, the paperwork is dull dull dull. If you have a sharp and inquisitive analytical mind, then the jump to insurance will be just the thing you need if your goal is to be comfortable and essentially brain dead
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[. If you like the comprehensive approach then you will go nuts being limited only to solving insurance needs.[/quote]

BRAVO - well said. The question then becomes financial planner or RIA. Seems to me you can just call yourself a financial planner and start tomorrow.

The downside is that in insurance, unless you hold yourself out to be a "specialist", the onus is still on the client to pick the right type and amount of insurance, or in other words, one has to really be a screw up to get sued and lose. Not so with investment advise.

So, maybe losing your sanity is the trade off for keeping a safe T Net in play.