Need Some Good Gas and a Little Advice/direction

[DavidHill76]

I've been working to start my own RIA, which of course includes an insurance arm. While we wait for the custodian paperwork to go through with Raymond James, I'd really like to make some quick, short sales of term insurance.

We have two agents in the process of being onboarded. But I have to lead by example. We really got things ramped up in early April, I know building a practice (starting over) takes times, and now I'm having to deal with a lot of the filings and paperwork of being a business owner, not just being a day to day salesman.... well y'all know!

So Im just here asking for advice, maybe someone can reach out of PM. We are in the process of setting up mortgage protection referral pipelines from realtors. My network knows of the new company.

Once we get the ability to move my AUM clients over from EDJ, things will get easier (slightly), but until then, I need to eat and generate some business.

 

[DHK]

And THIS is why I removed you from my LinkedIn connections.

First, you post an article about "meeting with a financial planner who is only trying to sell you a product"... and then you post this junk????? (And hit "thumbs up" on your own post??? That's just odd.)


You keep jumping into things without knowing some of the basics and planning ahead.

I thought you learned how to prospect at Edward Jones. Keep doing that. That's how you'll eat and generate business.

 

[TevisVerrett]

Ouch, I will steer clear of the bad blood between you two.

I am interested in the OP's journey.

My gentle advice on 'term' just sign up with any halfway decent FMO/IMO and sell their shiny object of the day. You can be the general agent and make your underlings subagents.

Or, (and I am grateful for the wisdom of the craft) You can go direct with Midland National.

My regional rep is Hobie Beeman, and he is an exceptionally good guy. PM me and I will be happy to put you two together.

 

[DHK]

No "bad blood" at all. I found it annoying and fascinating that a person with less than two years of industry experience (you can search his past posts as well as look him up on brokercheck - since his username is his name) posted a WSJ article on LinkedIn about "steer clear of advisors selling products" (which I didn't like because I sell products) and then he's on here asking how to sell products!

For reference, here was the article: How to Choose a Financial Planner - Personal Finance - WSJ.com

Typically, financial planners earn their living either from commissions or by charging hourly or flat rates for their services. A commission is a fee paid whenever someone buys or sells a stock or other investment. For reasons we’ll explain later, you may want to avoid financial planners who rely on commissions for their income. These advisers may not be the most unbiased source of advice if they profit from steering you into particular products.

Then ON THE SAME DAY he comes on here asking for help in selling insurance because he needs to get his new independent RIA firm up and running and, according to the title, "needs gas money". I mean...c'mon!

I've been round and round with him... and he seems to lose his business sense and/or street smarts when it comes to this business - ready to jump in a little too quickly. See his past posts and you'll see it for yourself.


I wonder if he has updated his ADV Part 2 to disclose that he sells insurance products as an Outside Business Activity? After all, in the RIA world, earning a commission is a conflict of interest that must be disclosed.

 

[TevisVerrett]

Ugh, I read the article. OP you are diegenuous with your now "wanna sell term".

DHK, I stand corrected. Thank you for being the light in our dark and clown filled craft.

 

[DavidHill76]

Dhk, 'good gas' is a colloquialism it just means I need some good positive energy. Not that I need gas money, haha I've got that covered

No matter how mean, and how much you try to bully me I will never give up on becoming a successful certified financial planner.

To clarify, I'm pretty sure the article is mainly talking about the difference between Brokers and are is. The fact that a broker will charge you a commission on an a share mutual fund. While I am aware of a Grassroots movement to get rid of commissions on life insurance moving it more towards a letter of Engagement style type financial plan, I don't think the industry is quite there or ready to accept it. So I'm pretty sure most people understand that there is a commission of some sort involved on any insurance policy

 

[DHK]

I look forward to you proving me wrong. (Although making the move to RIA without a sizeable book or continuing to have commission/revenue coming in still makes me question your business sense.)

Just keep in mind that articles like these are against ALL commission-style recommendations - including insurance products, especially annuities. Articles like these do not differentiate between fixed and variable and are simply ignorant of their value - regardless of commissions paid.

I have a friend of mine (and old mentor) who is an independent RIA with about $35mm AUM. It's just him, last I checked... no assistant or other staff. He promotes a fee-based, consulting fee & AUM approach only. He actually gave up his insurance license to be able to say that and have it be true.

Remember that on LinkedIn, you are using articles to promote your brand and your message. When you post that you are "anti-commission"... that includes EVERYTHING. So just be aware of what articles you post and use to promote yourself.

NEVER ASSUME anything. Never assume "most people would know" anything. That's why our industry requires licensing, registration, disclosures, E&O, engagement agreements, arbitration clauses, or whatever else.

Good luck being an independent RIA. I hope you are retaining a quality compliance consultant.

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Btw, if you consider the truth and facts to be "bullying"... then I am guilty as charged.

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"Good gas" must be a southern thing... but I never heard it when I was in TN 18 years ago. I must've been in the poor areas to hear it.

 

[DavidHill76]

I look forward to you proving me wrong. (Although making the move to RIA without a sizeable book or continuing to have commission/revenue coming in still makes me question your business sense.)

Just keep in mind that articles like these are against ALL commission-style recommendations - including insurance products, especially annuities. Articles like these do not differentiate between fixed and variable and are simply ignorant of their value - regardless of commissions paid.

I have a friend of mine (and old mentor) who is an independent RIA with about $35mm AUM. It's just him, last I checked... no assistant or other staff. He promotes a fee-based, consulting fee & AUM approach only. He actually gave up his insurance license to be able to say that and have it be true.

Remember that on LinkedIn, you are using articles to promote your brand and your message. When you post that you are "anti-commission"... that includes EVERYTHING. So just be aware of what articles you post and use to promote yourself.

NEVER ASSUME anything. Never assume "most people would know" anything. That's why our industry requires licensing, registration, disclosures, E&O, engagement agreements, arbitration clauses, or whatever else.

Good luck being an independent RIA. I hope you are retaining a quality compliance consultant.

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Btw, if you consider the truth and facts to be "bullying"... then I am guilty as charged.

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"Good gas" must be a southern thing... but I never heard it when I was in TN 18 years ago. I must've been in the poor areas to hear it.

I first heard it from my last Regional leader at Edward Jones, he was X Air Force. As for joining the Ria without sizable assets, I have been lucky that my mentor is going to bring me on underneath him his firm, he just partners with Raymond James.
So we are definitely skipping a few steps, but we are also partnering with the best of the best on the custodian side. My compliance guy is also the guy who takes care of my mentor who is onboarding me underneath him through Raymond James. He's already got all my disclosures in place. So, check back soon on brokercheck and you should have even more dirt on me