My first post, your opinions on Guardian.

[James]

Only reason term is preferred by most agents, it is cheap and easy (compared to WL) to sell. There is no fiduciary or suitability of term outside of being cheap, we all know what cheap means, do we not? Cheap is rarely if ever a qualifier for quality, something that Guardian is known for, at least in my book.

Plus I would of thought DI would of been just as pushed at Guardian as WL is?

 

[James]

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Investor Returns Vs. Investment Returns
The study indicates that contrary to their best interests, many investors are purchasing funds based on past performance, usually when they are already at or near their peak, and therefore not participating in the greatest gains. To reach this conclusion, FRC examined quarterly investment returns and net mutual fund sales figures from 1990 to 1999. On average, $91 billion of new cash flowed into funds after they had experienced their "best performing" quarters. But only $6.5 billion in new money flowed into funds after their "worst performing" quarters. Evidence of performance chasing -- higher net flows into funds after their best-performing quarters -- was identified in 42 out of 48 Morningstar categories studied.
According to Gavin Quill, FRC's Director of Research Studies who oversaw the study, "Our research shows that accelerating redemption rates and declining holding periods are entrenched problems that have been worsening for more than a decade. It will take a concerted effort by financial professionals and individual investors alike to reverse this disturbing trend and to undo its detrimental affects on the long-term financial health of the investing public."

So where will your savings from term insurance goes if it actually goes to say a Mutual Fund which is popular.

Dalbar Study update,

January of 1984 through December of 2002 (19 years). The update continued to support the findings of the original study: the average mutual fund investor is not getting returns equal to those in the market. The latest QAIB update contains the following statistics:

The average equity fund investor earned only 2.57% annually over the 19-year period included in the study, compared to annualized inflation of 3.14% and the S&P 500 Index average annual return of 12.22%. (Yes, you read it right. The average mutual fund investor’s gain was less than inflation over the last 19 years and only a fraction of what the S&P 500 gained!)​

The average fixed income (bonds) mutual fund investor fared a little better, but not up to the market’s performance. Over the last 19 years, the average fixed income mutual fund investor had an annualized gain of 4.24% versus the long-term government bond index which averaged 11.70%.​

That 6-8% return with tax advantage is looking better all the time!
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[MIBizInsurance]

Remember the whole "buy term and invest the rest" is and will always be BS! At least in my book.

It should be "Buy term and save the rest"

The term peddlers use the "invest" route as they can compare the returns to those you might see in investments that involve risk.

WL was never meant as an investment. It was long considered a safe way to accumulate while offering a death benefit.

Saddly the WL companies even jumped on selling WL as an "investment" of course this is done with a /wink.

It still comes down to what the client wants/needs. Both have advantages.

 

[fjman]

Remember the whole "buy term and invest the rest" is and will always be BS! At least in my book.

It should be "Buy term and save the rest"

The term peddlers use the "invest" route as they can compare the returns to those you might see in investments that involve risk.

WL was never meant as an investment. It was long considered a safe way to accumulate while offering a death benefit.

Saddly the WL companies even jumped on selling WL as an "investment" of course this is done with a /wink.

It still comes down to what the client wants/needs. Both have advantages.

Agreed


DI does get a lot of Limelight here at Guardian. I was looking into the vesting schedule. It seems to vary based on the product sold. With their L95,99,121 - it looks life I need to be in for 10 years or age 55 for vesting. pension products and ULs 3 years. Hmmm. I think I'm gonna stick it out here for a little while and figure out what I want to do. Maybe stay with Guardian but set up shop elsewhere down the line....... I've got fairly steep goals for '08 so I'll see how it all plays out.

 

[Agent Jeff]

<B>

So where will your savings from term insurance goes if it actually goes to say a Mutual Fund which is popular.

Dalbar Study update,



That 6-8% return with tax advantage is looking better all the time!
</B>

Market timing is risky; it's not a good idea unless you enjoy risk with no expected reward except a rush of adrenalin. Some people have lost money badly, in fact gotten killed, by doing trading at the wrong time. But some people just love the excitement. How else can gambling be explained?

On the other hand many other people, probably most, are buy and hold types.

If you are a trader, market timer type you do not invest in permanent insurance because it is too boring. If you are a buy-and-hold invester you do not buy permanent insurance because you can do better with your money.

 

[MIBizInsurance]

The whole paying/renting software burns my ass.

Paying a company to use their software to sell their product...boy, wish I would have thought of that one.

Isn't owning your book enuff for these companies?
Understand there is a vesting schedule but we all know very few make it that far.

I like NYL shtick - "You'll need to sell a few policies before we even let you join us"
Ya, OK!


What do you get/gain by working there now the training phase is over?

Leads?
Salary?
Health insurance?