Being a financial advisor or insurance agent isn’t all champagne wishes and caviar dreams. In fact, it’s a lot of misery for a long time and then maybe, just maybe, a ray of sunshine breaks through a seemingly endless dark cloud that rains prosperity down on a persistent individual.
That all sounds rather dark I know, but I want to be very clear about how this industry over-emphasizes the benefits and understates the costs (both financial and emotional) involved in growing to become a successful advisor/agent.
Today we’re speaking directly to those who seek to join our ranks within the financial services industry, and those who have newly joined the game and wondering how on earth they go about continuing to stay in the game.
We’ve definitely not shown a lot of love and admiration for the old 401k Plan around here. While there may be circumstances where contributions to a 401k make sense (though relatively few circumstances) we would be remiss not to point out that 401k’s and their sister products (e.g. 403b’s, 457’s, etc.) aren’t the only wholesale retirement product that can let you down.
No, I’m afraid one of the most respected retirement vehicles that many would love to see gain a resurgence in the employee benefits market place can also be just as disappointing for a number of reasons. I’m talking, of course, about traditional pension plans.
Life insurance policy loans are a long standing feature of cash value life insurance. And this feature can be a very powerful financial tool at your disposal when used correctly. I would even argue that this feature should be the focus of such books as Bank on Yourself® and Be Your Own Banker®.
Having a grasp of policy loans and the mechanics therein goes much further to make the case for life insurance as a viable financial tool.
Today, I want to walk through a few examples (with math to back them up) that highlight my point about life insurance loans potentially being the superior method of financing purchases.
As we move through 2014 we’ve decided to bring an exciting new change to the format of the Insurance Pro Blog regarding our distribution of information. Starting this week, we’ll begin producing and distributing three episodes of the Financial Pro Cast and each episode will be accompanied by an article that dives deeper into the discussion found on the podcast.
Additionally Read More…
In today’s episode of the Financial Procast we’re talking about the Guggenheim group getting sued–kind of, ETF portfolios lag traditional mutual fund portfolios, retirement savings tax breaks may be cut for high earners and myRA’s gonna save us all.
The investment sales world is often interested in convincing us that their products are superior, but when proof of superiority is lacking one opts for a common secondary method…bad mouthing the competition. And while there are a number of ways that this sort of thing might take place throughout the financial services industry, one such practice that deserves time here for it utter nonsense is the claim that you and I can easily beat the investment performance of a life insurer and further it’s stupid to think that there is something special they could offer since they are bound to the same market you and I have access to.
Here’s what we have on tap for today: Millennials are stingy with their money, 401k matches get cut, another life insurance company sheds their broker-dealer and one CEO says the poor should stop whining. Read More…
While we have no particular interest in being pariahs, we certainly have received a good amount of admiration for holding the insurance and financial services industry accountable on its many foolish blunders. To be fair, it’s not as though this industry is unique and with an overabundance of missteps and such, we just happen to take up professional residency within this industry and care a lot for its prosperity. So when we find ourselves shaking out heads we find the need to wag the finger and encourage more professionalism, intelligence, creativity, etc.
And recently we’ve found ourselves clawing at our eyeballs over the industries approach to Valentine’s Day. And we’ve taken issue with the mecca of the life insurance industry’s advocacy groups, the Life Foundation.
In episode 75 of the Financial Procast:
- Hartford wants to buy back old fixed annuity contracts
- The National Women’s Law Center says Long Term Care insurance is covered by PPACA
- Advisors whine about their clients not giving referrals
- Changes you can expect for 2013 tax return Read More…
We make a lot of comparisons at The Insurance Pro Blog and whenever and even more behind the scenes at The Salus Agency. And one of the biggest questions that consistently comes up from some of those comparisons has to do with the gap between income projections for universal life insurance and whole life insurance.
So what gives with the disparity between these two products? Do the universal life carriers lie? Or is there something else underlying the situation that explains this difference?