Northwestern Mutual to Be Founding Sponsor of CFP Center for FP

[DayTimer]

"Some of the conflicts described in the document would apply to nearly any BD, while others — such as a prohibition on fixed index annuities — are more unique to Northwestern. Cash sweeps, revenue sharing, 12b-1 fees, sales loads and other commissions remain widespread."

1) A prohibition on guaranteed income for life?

2) You put your money in a mutual fund for 30 years or put the same money into a cash value whole life policy properly structured and funded. Where will you pay higher life-time commissions and fees?

"Besides the commission for selling Northwestern products, the firm’s representatives earn cash bonuses based on production, credits and subsidies toward retirement and healthcare benefits, training allowances, awards, travel, gifts, prizes and other forms of compensation."

The nerve of sales people expecting the opportunity to earn bonuses, 401(k) matches, health insurance, and training allowances (which one assumes may be in the best interest of the consumer to have a well-trained advisor).

And then to be recognized with travel, gifts, and other bonuses for producing at a level that supports the hundreds or even thousands of jobs that support the firm on the back end. Is this any different from any other industry? Salespeople tend to be highly compensated. If it were easy, the competition for sales jobs would be fierce. Instead, most organizations will give anyone capable of fogging a mirror a shot, with the only knock out sometimes being the possession or not of a college degree.

 

[DHK]

"Beware of high commission sales people because commissions are EVIL!"

Of course, because we understand how wealth works, and getting back down the retirement mountain... we know that there's an agenda to focus on all these little things, instead of the BIG issues.

 

[DayTimer]

we know that there's an agenda to focus on all these little things

The irony is that the agenda was formed in the 1980's. Most of those working in the business today, including those in the financial entertainment industry, think that they are at odds with the government and its agenda of taxing wealth and savings, when in fact they are the government's willing foot soldiers. Wall Street and the Banks get to collect guaranteed income for life in the form of fees charged to QRP participants, while the government gets a free ride on its investment in the plan and the benefit of taxing the withdrawals at higher effective rates (even if lower marginal rates) than when the money went in to the account.

The Inventor of the 401(k) Thinks It Has Gone Awry

 

[DHK]

Since a friend of mine is with Northwestern Mutual and a CFP practitioner, he stated that he was fine with it all.

Which leads me to believe that, and I'm sure this is true, that Northwestern Mutual probably considers themselves to be more of a wealth management firm with a foundation in whole life insurance. That kind of image is what they've been promoting for a while, so it all would seem to make sense.

Now that I'm thinking about it, are there any real legendary producers with Northwestern Mutual? The biggest profile agent I can think of is Al Granum.

 

[Allen Trent]

Now that I'm thinking about it, are there any real legendary producers with Northwestern Mutual?

I hear the name John Fokert mentioned a lot. I believe he does a ton of COLI/BOLI cases. Some with annual premiums of $1M or more per year. Flies throughout the country when brought in as a specialist by other producers. Not sure how legendary he is nationally, but at least some of his cases are legendary

 

[DHK]

I've heard of him - not by name, but by the cases he does.

 

[DayTimer]

Flies throughout the country when brought in as a specialist by other producers.

Not bad work if you can get it.

 

[Tothetop]

Since a friend of mine is with Northwestern Mutual and a CFP practitioner, he stated that he was fine with it all.

Which leads me to believe that, and I'm sure this is true, that Northwestern Mutual probably considers themselves to be more of a wealth management firm with a foundation in whole life insurance. That kind of image is what they've been promoting for a while, so it all would seem to make sense.

Now that I'm thinking about it, are there any real legendary producers with Northwestern Mutual? The biggest profile agent I can think of is Al Granum.

This is not news. If you watch the advertising for many life insurance companies today, it is less protection based and more of a "there when you need us" and "we planned for this" type of vibe. Less emphasis on protection and more emphasis on all-encompassing planning.

I went to get a Penn contract a few years ago at an agency in NYC and they were only looking for folks who planned to do financial planning, not just do "life insurance" like family protection.

The NYL agency MP at the time I worked there years ago made it a requirement that all new agents get security licensed in the first or second year.

Not to mention Mass is affiliated with BEI, a business exiting training institution. These big life companies are veering away from your "kitchen table" appearance and more to the "office meeting" appearance.

This move to wealth planning and financial planning is becoming the norm in the agencies where I'm located than it is the oddity.

 

[DHK]

Very true. It's really the difference between the "Ordinary Life" agencies and the "Debit" agencies.

John Savage predicted that the Debit agents may rule the future.

 

[Allen Trent]

This is not news. If you watch the advertising for many life insurance companies today, it is less protection based and more of a "there when you need us" and "we planned for this" type of vibe. Less emphasis on protection and more emphasis on all-encompassing planning.

I went to get a Penn contract a few years ago at an agency in NYC and they were only looking for folks who planned to do financial planning, not just do "life insurance" like family protection.

The NYL agency MP at the time I worked there years ago made it a requirement that all new agents get security licensed in the first or second year.

Not to mention Mass is affiliated with BEI, a business exiting training institution. These big life companies are veering away from your "kitchen table" appearance and more to the "office meeting" appearance.

This move to wealth planning and financial planning is becoming the norm in the agencies where I'm located than it is the oddity.

And this is why the middle market is so grossly underinsured for protection according to all the studies. Financial planning reps rarely want to deal with ho-hum protection, if any life insurance. it is beneath them for a 1 time small check to run the # of appointments or stumble through the UW process for a small check.

Then, those in the actual life insurance mainly marketplace tend to either elephant hunt for big premium paying life cases for seniors/business owners or those that focus on quick & easy Final expenses cases especially for seniors.

few. if any, in our industry want to work nights to sell to 25-50 year olds for term life. it is why it is so important for worksite carriers & PC carriers to serve this market along with more agents being able to write term on the simplified UW platforms with no exams in most cases & e-app support.