Securities by Day, Med Supps by Night

[ExProgrammer]

Is there any conflict or problem with having a job working for a broker/dealer which requires a Series 7 or similar license and then doing your own thing or your own time? I assume that if your own thing involved the sale of securities you'd at least have to disclose it to your main employer and/or FINRA. But if you only sold life and health insurance products on your own would there be any conflict or notice requirements?

TIA (Thanks in Advance, not that I'm having a mini-stroke.)

Tim

 

[sman]

Most B/D’s require you disclose outside business activity. There certainly isn’t any conflict unless your employer doesn’t allow it. I am securities licensed, but I’ve always been independent which means I’m not an employee. I still have to disclose OBA though.

 

[AgentSixNine]

You definitely want to disclose it has an OBA (Outside Business Activity). Most B/d''s will approve it however, there might be some that don't. YMMV

 

[The Medicare Gal]

My B/D had already approved insurance sales, ie Medical/Life/etc outside the BD.
And I had a separate website for Medicare.

Then in 2014 on my annual audit they informed me I needed to have all my Medicare posts on the separate website pre-approved before release. I was already getting my FMO's review of all my posts. Adding this additional step when my B/D knew absolutely nothing about Medicare was just too much.

I finally got fed up with having a BD, and went with an IAR firm. I had sold my business but the buyer backed out because of her marital problems at the last minute. Rather than pay my $5000 annual tech fee to the company, I discussed with my husband and just quit.

Yes, it was a financially stupid decision, but a great decision for me. Fortunately we had the funds to support it. (I lost six figures in income because of all the proprietary programs I walked away from.)

This was in 2015.

Now that my Medicare business is creating an income higher than my IAR business I'm thinking of giving that up too.

Because of this decision I have much less hassle and I fewer wrinkles now.

 

[AgentSixNine]

Oh the joys of working with a b/d!
@Themedicaregal...it's ironic that you mentioned your story. I have friend that I'm in the process of buying out his book of FA clients as he plans to focus exclusively on Medicare and doesn't want the headaches of compliance with a B/D. He's been doing it the past couple of years and is already making as much if not more than he was making as an FA. He's the one that got me interesting in selling medicare plans in the first place.
I'm almost jealous on how easy it is and how quickly he's been able to build it up in a just a few short years.

I'm almost wondering if I should make the same leap as you have and he's about to do.
Although, I'm the sole provider for my family, so I wouldn't do it as of right now. My plan is at minimum to diversify my income (because who knows with all the changing regulations and fintech solutions what the industry will look like in the future) and at best build it up enough in the next couple of years where I might have to strongly reassess my options.

Nice to see someone who has done it and is succeeding.

 

[The Medicare Gal]

Oh the joys of working with a b/d!
I'm almost wondering if I should make the same leap as you have and he's about to do.

@AgentSixNine, its way less compliance headaches, EVEN if you decide to sell MAPD.
Start now and you'll be able to break the chains that bind you in a couple of years.
And, if you do it correctly, it's also more satisfying.

 

[AgentSixNine]

@AgentSixNine, its way less compliance headaches, EVEN if you decide to sell MAPD.
Start now and you'll be able to break the chains that bind you in a couple of years.
And, if you do it correctly, it's also more satisfying.

@The Medicare Gal...Well I'm in NJ and you're in CA and from my understanding these two states pay the highest MAPD commissions. So it's probably not a bad idea to add that into the toolkit as well!
Thanks!

 

[MoreThanEnough]

@AgentSixNine, its way less compliance headaches, EVEN if you decide to sell MAPD.
Start now and you'll be able to break the chains that bind you in a couple of years.
And, if you do it correctly, it's also more satisfying.

I'm starting to study for my health license with a goal to build a MedSupp BoB. Can you share more details on what it means to 'do it correctly'? What does that look like to you? I'm coming from a career in education... teacher, principal, trainer. Thanks!

 

[Todd King]

I'm starting to study for my health license with a goal to build a MedSupp BoB. Can you share more details on what it means to 'do it correctly'? What does that look like to you? I'm coming from a career in education... teacher, principal, trainer. Thanks!

A couple of things: Make sure you get your Life license at the same time or you WILL regret that later on.

Being a teacher/trainer....you will do quite well as we are also in the education business. That's one of the first things of "doing it right".