New York Life Financial Adviser Qustions

[jm1080]

Hey guys, I was currently studying for my insurance licence (series 6), but my goal was to become a financial adviser. I currently work at a bank and met a very helpful person whom wanted to help me become a financial adviser. He is a very successful financial adviser for New York Life. He said he can get me in the door and become sponsored. Now I thought New York Life was life insurance? Do they also have financial advisers, such as Merrill Lynch, etc?

I have an interview and he stated he would sponsor me as he has his own office. From what I was told you get a 3 year training paid, but all commission, residuals etc. From what I understood he mentioned series 63, 66, etc. Not sure of those, but what about series 7? Do they handle that? Just confused and unsure if this would be a worthwhile opportunity. Any of you have any experience?

 

[DHK]

Yes, New York Life is life insurance. You will be expected to sell life insurance if you work with New York Life. Make no mistake about it. If you don't make your minimum quota of life insurance sales... you will be let go, regardless of the size of your book of business in securities management.

I'm sure that people have their Series 7 at NYL. However, it is traditional that you will be sponsored for a Series 6 & 63 before your 7 & 66. Why? Because it's easier and you can sell mutual funds, variable annuities, and variable life insurance with a series 6. And I recall that you would have to have either your CFP or CLU and ChFC before they let you use their fee-based asset management program - which normally requires a series 65 or 7/66. I could be wrong about the designation requirement. I just recall seeing that from one of their recruiting video packages.

BTW, insurance is a part of financial planning and every ethical advisor should be reviewing life insurance coverage with their clients - whether you're at a bank, investment firm, or insurance agency.

If you're not reviewing and recommending life insurance... you are just an INVESTMENT advisor... not a comprehensive financial advisor. Nothing wrong with that, but that is the distinct difference.

 

[jm1080]

Thanks for reply! But is there a difference between insurance agent and financial adviser in that company? Normally I think of financial adviser as stock related. When researching more online I see they have those two positions. The person I know is financial adviser and did comparisons with merrill, so I figured series 7. He mentioned series 63,65,66 I believe, I only know of series 6, 7 and 63. Unsure what the others are. I thought 7 is required of financial advisers.

Any questions I should ask in particular? Would be appreciated!

 

[DHK]

I used to have a series 7. Barely used it. You've been brainwashed by your bank to believe that you need it.

What does a series 7 cover?
Stocks (which many firms don't offer unless you have extensive training, or only to offer their in-house approved securities).
Bonds
Mutual Funds
Options
Margin Accounts
ETFs
Municipal Bonds

And a lot more.

This is very 'active management' of a portfolio... and your job is to gather assets for OTHERS to manage. That requires a series 65 license.

I bet there are VERY FEW people in your bank that have a series 7, actually USE it to its full capacity.

I held a Series 7 before. The most I ever did, was facilitate some stock liquidations to fund mutual fund transactions, or to fund a variable annuity. Everything else I did, would only require a Series 6, 63, and 65.

Even in large broker/dealers like Merrill Lynch, you have to do extensive study before they'll let you actively manage a portfolio. If that's the path you really want, you should check out opportunities to get your CFA designation.

Just because the licenses may be the same, doesn't mean that every firm treats them the same.

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Try searching "NYL Interview" for some questions to ask.

Insurance Forum - Search Forums

 

[jm1080]

Thanks for the very informative post! I'm still new to this and yes I always believed series 7 is the most important because all the jobs I see for financial adviser, or Merrill, etc, require series 7. My sister whom is a manager in California at another bank, told me the same. So in regards to NYL, is the financial adviser role different than insurance agent role? Do you have experience in this institution? I just am weary of the no salary and all commission role as compared to working with a bank where there is a stable salary plus commission on the financial adviser side.

 

[DHK]

Is there a difference between "insurance agent" and "financial advisor" at NYL? Yes. The "financial advisor" can offer securities-based solutions and are more tightly regulated than the "insurance agent". BOTH have the responsibility and duty to sell NYL life insurance.

Let me put it this way:
- At NYL - you can sell all the securities you want, and still be fired for lack of insurance production.
- At Merrill Lynch - you can sell all the insurance you want, and still be fired for lack of assets under management.

Same licenses, different focus.


NO insurance company offers any kind of salary. The closest thing to a salary you can get is with Met Life, and they give you a "salary" (that you have to qualify for with $20,000 of commissioned, submitted business) up to $1,300/week... for 19 weeks. Their commission arrangement is unique, so I won't go into it here.

NYL may say that you can get a "training subsidy"... but that's just a bonus on top of your submitted business. That's a bonus, not a salary.

If you want a salary + commission deal, you'll want to be with Merrill Lynch or other wirehouses... or stay at your bank.

Why would a financial advisor do investments with an insurance company's broker dealer instead of a wirehouse or bank? The payouts are much higher.

Here are some broker/dealer payout grids so you can compare:
Payout Grids - On Wall Street

Insurance company broker/dealers (not listed in the link above) can pay up to 75% or more depending on your production, and those hurdles are far less than the hurdles shown for other B/Ds. (Compared to 50% payout with $5 million annual production.)

Insurance companies don't have to rely just on their broker/dealer to make a profit, so they can pay out more to the rep.

However, it's all still 100% commission... no base salary.

In short - you have to produce to eat. You eat what you kill. It doesn't matter if it's investments or insurance... if you don't produce, you'll be let go.

 

[Indiana_Adam]

NYL is a tough gig. Great company, but still operate on the mentality of throwing everything at the wall and seeing what sticks. If you have a mentor willing to work with you directly, help you grow, and even throw some business your way, then you may be better off than I was. I crashed and burned hard. But I'm much happier now in the Indy world doing P&C and Life than I was at NYL. I don't have to pressure sell anyone, which is what NYL will train/push you to do.

 

[moonlightandmargaritas]

I just am weary of the no salary and all commission role as compared to working with a bank where there is a stable salary plus commission on the financial adviser side.

Don't get lulled into a false sense of security. If you don't sell, the "stable salary" won't be around for long!