Rate Search Inc.

[johnrocks]

As I have mentioned in other threads I am thinking of branching out into annuities and one way of getting some good prospects ;I feel: is holders of cd's. Rate search inc. is a company based in St. Louis that locates banks across the country with the highest cd rates. You can get a small commission or add that to there rate. I was wondering if anyone else has used them. I have not but advertising a higher cd rate (fdic insured) would probably create some activity.

 

[senior-advisor-indiana]

Thats a great idea john. Actually LIfe Sales has a program called ratepro. They advertise high CD rates to get in the door and talk about there money. Sounds great. I have neve done it. It would be good for a newspaper ad though. I think I am gonna try it.

 

[L5tc]

Another waste of money

Last I saw in a savings back they ALL sell annuities. How are you going to pivot them away from the bank annuity to you - and how are you going to access their clients even if you know which bank you're working with?

Also currently the annuity rates are lower than the CD rates at least in New York that's true. Some first year fixed interest rates are higher but they all drop in the 2nd year. The ones that are fixed for say 3 years are at best around 4.75.

If you can pull it off I commend you!!

 

[johnrocks]

Last I saw in a savings back they ALL sell annuities. How are you going to pivot them away from the bank annuity to you - and how are you going to access their clients even if you know which bank you're working with?

Also currently the annuity rates are lower than the CD rates at least in New York that's true. Some first year fixed interest rates are higher but they all drop in the 2nd year. The ones that are fixed for say 3 years are at best around 4.75.

If you can pull it off I commend you!!

It is just an idea,this service is free,they pay you a commission and besides it's like every other type sale;it's a numbers game.

 

[natem2112]

If for nothing else, it generates interest and they come to you looking to find the most competitive place for their money.

At that time it is your place as the advisor to recommend the best value and communicate that to your new found prospect, whether it their money should be in a good CD or an annuity.

I thinnk that it is a great idea, it gets your foot in the door if for nothing else.

 

[johnrocks]

That's what I was saying Nate,just another marketing ploy.

 

[senior-advisor-indiana]

Even if the CD rate is 5.5 % , the client is still paying taxes on the interest. So if they are in a 28% tax bracket, that drops the annual yield to around 4% after taxes. If they arent using the interest the annuity will earn much more than the CD. Haven't you guys heard of triple compounding interest? Annuities have way more benefits than CD's. You cant draw any money at all out of a CD without paying penalties. They don't bypass probate. They can't provid a lifetime of income either. The point of rate search would be to get an appoinment so they can get a better interest rate. Once you are there you can show them the benefits of an annuity and atleast start them out with a small one.

 

[johnrocks]

as the beer commercial says "BRILLIANT".

 

[johnrocks]

The only thing that worries me about annuities with the age group that I mainly cater to is the longer surrender charges. It seems like the annuities with the best commissions are the ones with the long surrender charges (14 years) and I know that somewhere in America there is gonna be some slick sales-person tomorrow that talks a 70 yr. old to tie their life savings up until there 85 years old just to make a small fortune. I ain't built like that.

 

[senior-advisor-indiana]

Only put a client in an annuity if they have no plans to touch the money. They can if they want. I sell 10 yr annuities to 80 yr olds. How many people you know have a 401k? Most seniors do. They aint gonna pull out there 401k in a lump sum or thier SEP. Sell qualified annuities John.