Newbie Questions!

[padthaiforlunch]

Good info. Another annuity market to consider is retirees. They are home during the day and they have money. Also, there are a dozen ways to skin this cat, but you need to find a mentor to teach you a method that works. Whatever method you use, most folks will have a "financial planner" who sold them their current annuities or investments. Read "The Wedge" and practice it. Wherever the client has parked money, your competitor will try to preserve the client and poison your well.

 

[Norwayguy]

Good info. Another annuity market to consider is retirees. They are home during the day and they have money. Also, there are a dozen ways to skin this cat, but you need to find a mentor to teach you a method that works. Whatever method you use, most folks will have a "financial planner" who sold them their current annuities or investments. Read "The Wedge" and practice it. Wherever the client has parked money, your competitor will try to preserve the client and poison your well.

This is some other good advice. As Padthia has mentioned though a prospect doesn't typically get to 60+ years of age and accumulate money without having used the services of other advisors so it can be difficult just getting in for an annuity appointment. I know some agents use low hanging fruit like medicare supplements to get into the house and try and cross sell to the annuity, this can work and it can backfire as they may see you as a medicare agent first and foremost as opposed to someone to help them with thier money.

A typical area you might be trying to move money from with a retiree is a CD. I think it helps if you can also offer CDs so you can show the client you are not just offering the annuity because it pays you the most but it is the best option. There are FDIC insured Equity-Linked CDs and if you deal with the right IMOs you can get hooked up to sell those products. I also have access to Acacia Federal Savings bank products through my appointment with Union Central, I don't push the bank products and as of this year they no longer pay commission on CD, savings or checking accounts but if I had a situation where the client wanted another regular CD and Acacia was competetive I would offer it because I then have access to the account numbers and balances and the client has bought me.

I've used the Acacia option lately mainly for the free checking option when I am moving a client from a 403(b) to using an IUL and I can't get payroll deduction in the district...The number 1 stumbling block isn't selling the life policy it has been they are so used to the convenience of payroll deduction, so if the district allows them to direct deposit to mutlple accounts I will just take my life premium and direct deposit it into the acacia account and EFT it from there.

 

[padthaiforlunch]

I know some agents use low hanging fruit like medicare supplements to get into the house and try and cross sell to the annuity, this can work and it can backfire as they may see you as a medicare agent first and foremost as opposed to someone to help them with thier money.

This all depends on how it's done. You may be able to convey that your primary focus is help seniors avoid penury/protect their nest egg/plan their estate/make sure all of their insurance works as expected... and part of your job involves their health insurance.

 

[Norwayguy]

I received back the info from Great American and their plan finder tool. I used the zip code for the first district and had it return plans within 50 miles. You can get appointed with Annuity Investors the GAFRI subsidary that does flexible premium annuities direct at www.write403bdirect.com.... From how few plans are listed it leads me to believe 1 of 2 things either your school districts are quite large (And you would know that) or I think the 403(b) is a harder sell in your state due to its mandatory 401(k).

 

[insurancesc]

Thanks guys for all of your information. It gives me a few roads to look down. The school districts here like all of the local governments here (I think), are apart of the State Retirement System which is mandatory for all employees to contribute to. It is supposed to pay them like a pention($$) for life and I don't think they can remove it from the fund but I will check into what options are available for me.

Thanks again guys for your help.

 

[Norwayguy]

Thanks guys for all of your information. It gives me a few roads to look down. The school districts here like all of the local governments here (I think), are apart of the State Retirement System which is mandatory for all employees to contribute to. It is supposed to pay them like a pention($$) for life and I don't think they can remove it from the fund but I will check into what options are available for me.

Thanks again guys for your help.

You need to check if they contribute to social security. My teachers are required to contribute to a pension system but do not contribute to social security....They know it is not enough which is why the 403b works.

 

[arnguy]

Good information, Peter. You are being very helpful indeed to this newbie.

 

[Norwayguy]

Good information, Peter. You are being very helpful indeed to this newbie.

I remember what it was like to start. I found the 403b niche about 4 years into my career, it takes some work but if you really know their benefits it can help...Had a teacher tell me they had life insurance through work....So I asked how much? He wasn't sure then I told him he has 10k from Maine state retirement and then they can buy multiples of their salary , he smiled until I finished the sentence they can buy multiples of their salary if their school system participates and even then the max is 3 times salary so a new teacher with a 30k salary has 100k max from work. Not enough if they have a home or kids or student loans etc etc etc....

 

[aabbaacurlish]

Helpful information. Thanks!