Starting in Annuities.. How To??

[supersupps]

let;s say an agent started in Fe and did ok.. a few k every week.. then he went into MA and did about 10-15k a month. Now he wants to consider annuities, but is sort of dreading the learning curve, bec he doesnt even know what an annuity is, but knows he will be a winner in 6 months time.. any thoughts on what to do . and to avoid losers pitfalls,,mistakes, etc. thanks

 

[padthaiforlunch]

Start with a CE class on annuities to get the basics. Then find Jack Marrion's books. They have good concepts and will help your mindset. Get contracted with one or two carriers and learn their products. Perhaps American Equity and Annexus. Then get a mentor.

 

[Norwayguy]

Start with a CE class on annuities to get the basics. Then find Jack Marrion's books. They have good concepts and will help your mindset. Get contracted with one or two carriers and learn their products. Perhaps American Equity and Annexus. Then get a mentor.

I second this post...If appropriate you might want to put some of your own funds into an annuity....Make sure your getting into annuities for the right reason, to better your client and not to just pull in some big commissions.

Also make sure you understand the concept of Qualified and NonQualified funds and how to transfer/Rollover funds that will not create a tax burden for your client.

 

[TRSecurity]

Definitely get a mentor. And work your existing client base first. They will be more open to seeing you struggle (or lacking confidence) while the mentor will make sure the client is getting the right service and product.

 

[0b1kanobee]

There are a lot of pitfalls and mistakes one can make and you will look terrible and possibly have an unhappy client. I would start with learning some basics about how they work. I would also become familiar with one company in the beginning because products vary from one company to another and there are big and little differences within products and companies.

I would start in the 'dead money' market, money people have in CDS which you could 'possibly' capture and place in an annuity. There are some good annuity products designed for this. The transaction/transfer process is easier then say from rolling or transferring from 401ks ect. ect. You will also have some paperwork issues and suitability stumbling blocks along the way because not everyone should be in an annuity.

It is easier to go from like to like when dealing with clients. If you have a person who is in the market and you are showing them a fixed product, it might not be very exciting for them as to what you have to offer. That is why I work with a securities partner. We just did an appointment Friday with someone who was 100% in energy who has a ROTH. We did a SPIA for some and showed a FIA and a variable for the 2nd product. They picked the variable annuity hands down. In Florida you have to have a securities license to do a variable annuity.

If you live near the Orlando area or withing 60 miles driving distance and you want someone to help you work your cases or go on appointments, let me know. We have an office in Orlando and Vero Beach. We also go to Highlands county once a week. We currently work with one health agent and he just sends us referrals. We tried to teach him but he is about ready to retire in a couple of years so he just didn't have much interest and he thought it was too difficult. I think he is burn out too. He made several hundred dollars Friday for that referral. He will make several thousand on a case we have been working on.

If you just want information, we can talk. You share what you know on the sups and FE and what is working and I'll tell you what I know. I would like to know where you are located. If you are not near me, it might be difficult to establish a working relationship. PM me if you would like to talk. I don't recruit for annuities so you will have to go and get your contracts or submit business to do so. The one company we like to use has a pretty strict contracting process but if your credit history and insurance history is good, you should be fine.
I only do about a million a year in annuity business and my partner about 5 to 6. So we aren't to big to blow you off but not too small that we wouldn't be a good fit either. As I have said, we have only been testing the waters with one agent. We have been given 5 referrals and closed 3 with another still working. My guys close rate is about 70% and mine is about 40%. Sometimes I don't do a good job and sometimes the client is not keen on the idea and sometimes an annuity is not the right choice. We are both getting better though, so it is progress. Real numbers though, no fluff.

 

[KJ in Miami]

Sell the concept - annuity can be a four letter word to some!! Not that I am the best annuity guy - just learning.

 

[nathan.lee]

Start with a CE class on annuities to get the basics. Then find Jack Marrion's books. They have good concepts and will help your mindset. Get contracted with one or two carriers and learn their products. Perhaps American Equity and Annexus. Then get a mentor.

Great approach. Learn the basics and be able to articulate the concepts. The best case scenario is that you can find a local mentor who will let you observe him/her in action. Also, ask around and do some research with regard to the FMOs that you contract with. Finding one that is willing to spend time with you in the beginning and doesn't push a particular carrier is also important.

 

[annuityexpertguy]

Great point Nathan. Thanks for the idea.