Insurance Only Annuity Agents, End of the Road?

[inreverse]

Is their hope for insurance only licensed reps doing rollovers for federal employees? Will they still have a market next year or is it time to find a new niche or product line?

 

[HealthGuy]

INREVERSE please break this down...your question doesnt have enough details.

 

[inreverse]

I am insurance licensed only, working with federal employee's and their rollovers into annuities. Do you think the impending DOL changes will make it difficult to continue working in that market considering I have significant marketing expenses that may be unworkable in a low commission and trails environment. I have no interest in additional licenses, etc

 

[walthamny]

You may loose the upfront commissions, instead you will probably get trails.

 

[SusieQ2]

Seems like I'm getting a wide range of opinions on what this will mean for insurance only annuity agents.

Some IMOs act like we won't be able to move qualified money, 401(k), IRA, etc. without a series 65 and then others act like it's not going to be any concern at all, it's not going to apply at all to those offering fixed annuities. I've even had one tell me it's not workable so don't worry about it. To me that means that the government is really going to mess it up

To me it's the camel with his nose in the tent, once they start regulating they won't stop.

Does this sound like what everyone else is getting from your IMOs?

3-Mentors recently merged with GamePlan, so to me that means they are planning on addition regulation?

 

[laknight]

If you are looking for life only options PM me... You would be able to still do rollovers they don't have to be a federal employee. I am talking about fixed products.

Sounds to me like you are in a limited capacity with some cost concerns.

 

[DHK]

No. He has concerns regarding the proposed DOL ruling and the impact it may have on fixed insurance only producers.

So far, there is a "best interest contract exception" available for variable annuities and it MAY include fixed indexed annuities. We simply won't know until it passes. (Sounds like Obamacare, doesn't it? The only way to know what's in it is to pass it?)

 

[laknight]

Yes it does sound like Obama Care! Never surprised by any of it! Trying to find ways to line their pockets.... Not sure if you followed the story a couple yrs ago regarding the deficit but, they were discussing tapping into everyone's retirement funds by withdrawing the taxes that would be owed to uncle Sam because they can.

 

[DHK]

I don't recall that story... but I would've supported it IF all the future distributions would be tax-free from those plans. I doubt that would be the case though.

And how would they know each individual person's tax bracket? No... it actually would've ended up being a bad idea.

 

[walthamny]

If I had to guess, DOL rule would probably include VA's, it may include fixed immediate annuities and somewhat lower probability of including fixed index annuities. Federal Employee market would be a great market for someone who has a 65. You can charge them an hourly fee for advising them on the thrift savings plan, sell them individual life and disability on the side collecting commissions. You just have to disclose that you are getting commissions. All the financial advisor crowd that used to sell A shares or VA's would stop calling the Federal government employees once this rule passes. Even the active management RIA crowd would avoid them. How can you charge 1% or more when the funds in the Federal Thrift savings plan are charging around 10 basis points a year. So the ruling is unclear at the moment, but it looks like you are going to have less competition from other advisors for your prospects.