- 428
does that go for video cameras hiden in the closet??
More Agents Get Nailed For Selling Annuities
- Thread starter Crabcake Johnny
- Start date
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- Tags
- annuity
- 11,503
This is the reason why I wish I could find a CRM program where you can't edit the history notes. Once it's in, it's in for good with a day & time stamp. This way, you can't go back and edit things "after the fact". Act software can do this... to a point. You can still "uncheck" the option to edit your history.
It's also a good idea to use a service like CopyTalk to help you dictate your notes to then be copied/pasted into the client file or record. Something that's unalterable after it's been input can usually help in such cases.
CopyTalk may be expensive, but there are discounts available through most professional associations. It's still cheaper and better for your reputation than a complaint.
I also like the idea of having your own client understanding forms to CYA. Understanding surrender schedules, IRS penalties and having an annuity within an IRA doesn't provide any additional tax benefits. Then giving the client a copy to keep in their policy, in the event that they forget why they bought it.
This is the only reason why I like the "planning process" and documenting your recommendations. It shows that you've listened to the client and made a recommendation based on the facts gathered. I'd even go so far as to have the client initial their objectives and the facts they've supplied as full, complete and accurate. I'd keep "the planning" to a maximum of 4 pages and written in plain English. Give one copy to the client and one for the file.
You don't need a series 65 to write out a plain English "plan". You just can't charge for the plan, nor have it contain any recommendations regarding securities.
It's also a good idea to use a service like CopyTalk to help you dictate your notes to then be copied/pasted into the client file or record. Something that's unalterable after it's been input can usually help in such cases.
CopyTalk may be expensive, but there are discounts available through most professional associations. It's still cheaper and better for your reputation than a complaint.
I also like the idea of having your own client understanding forms to CYA. Understanding surrender schedules, IRS penalties and having an annuity within an IRA doesn't provide any additional tax benefits. Then giving the client a copy to keep in their policy, in the event that they forget why they bought it.
This is the only reason why I like the "planning process" and documenting your recommendations. It shows that you've listened to the client and made a recommendation based on the facts gathered. I'd even go so far as to have the client initial their objectives and the facts they've supplied as full, complete and accurate. I'd keep "the planning" to a maximum of 4 pages and written in plain English. Give one copy to the client and one for the file.
You don't need a series 65 to write out a plain English "plan". You just can't charge for the plan, nor have it contain any recommendations regarding securities.
- 10,806
I wish it were only that easy.
Unfortunately the "right thing" usually has a few alternatives that could be considered the "right thing" as well; what ultimately makes something "more right" if you will, is the comfort level the client has with the plan/product.
Not to mention that the "right thing" today, isnt always the "convenient thing" tomorrow.
Also, when dealing with peoples estates; what was "right" to the client might not be considered "right" by the heirs.
Many lawsuits arise after the client is deceased and cant say otherwise.
As agents/advisors, all we can do is present options that will meet the goals that the client states. The client has to pull the trigger.
But more importantly, the client has to actually FOLLOW THROUGH, with the plan created.
This is the downfall of financial plans more often than not.
There are many paths to build your nest egg, we can show them to clients all day long, even start them down the path; but we cant force them to keep walking.
(By the way I manned the office most of the day since our secretary was out. We received 5 requests for hardship withdrawals or unscheduled distributions from IRAs today alone... we arent a huge office so something must be in the watter)
- 15,041
Let's not forget, the ones we are seeing, there was clear wrongdoing. The only one benefiting was the agent, at least until the chargebacks and fines hit.
Yeah, it is called spenditis. We need a tv personality telling people to SAVE, SAVE, SAVE! But that isn't as exciting as talking about how to use a home equity loan to buy a car, or how mutual funds return 10-12%.
- 8,707
I was driving home from a day out on appointments and it seemed like people had very little in the way of savings. So on my way home I drive by "MY" bank and on the big sign outside it says "Want to take a vacation, We offer home Equity loans".
- 15,041
And then you've got, and I quote "pikers" like Dave Ramsey and Suze Orman telling people to stick their money into mutual funds when they are scared stiff of the market. Hate on whole life if you want, but at least tell them to stick the money in a jar in the back yard. Anything to get people saving again and stop chasing returns they'll never see.
Well, you don't think they pay the bills with those CD's do you?
I was having a conversation with someone just a little while ago about someone--I admittedly don't know all that well--but apparently cries a lot about the money they don't have and is planning on going on vacation, soon. The person I was talking to asked how that was possible. My answer: "They ain't got money, but they got credit cards!"
What if the banking industry had regulations like we do? Like having suitability related to someone's total savings to be determined not if they were eligible to borrow money, but if it was suitable to give them the money and take on the debt. Or what if car dealerships had to perform due dilligence to determine the financial suitability of the sale of a car?
We don't even have stories of someone's suing a bank because the CD they were convinced to put their money into was unsuitable for them.
