Adding Annuities to my Book

[FinAdvsr]

Hello,

As a financial advisor, like most we tend to steer away from insurance sales. Not sure why, it's just a trend. However, I decided that in 2014 (and it's already May) I was going to focus on drastically increase my VA business. Aside from using my current client base and using annuities to guarantee 1/3 of their portfolios (where appropriate) does anybody have any tips on how to get in front of prospects interested in annuities? I've looked on various lead sites but they seem incredibly expensive (like $30-$50/ea) and I can't imagine the conversion rate would be very good. Any advice from VA (or Fixed) vets would be appreciated. Thanks for taking the time to read.

 

[GreenSky]

Do you want to add FE or annuities? You've posted you want to add both.

How about Medicare supplements?

Are you unsuccessful as a financial advisor? Do you want to lose a client because you don't focus on insurance and screw up?

You might want was to work with an insurance professional just as you'd hope an insurance agent would refer someone to a financial advisor professional.

Rick

 

[liorselamb]

Do you want to add FE or annuities? You've posted you want to add both. How about Medicare supplements? Are you unsuccessful as a financial advisor? Do you want to lose a client because you don't focus on insurance and screw up? You might want was to work with an insurance professional just as you'd hope an insurance agent would refer someone to a financial advisor professional. Rick

Well said Rick................

 

[Tahoe Ray]

Hello,

As a financial advisor, like most we tend to steer away from insurance sales. Not sure why, it's just a trend. However, I decided that in 2014 (and it's already May) I was going to focus on drastically increase my VA business. Aside from using my current client base and using annuities to guarantee 1/3 of their portfolios (where appropriate) does anybody have any tips on how to get in front of prospects interested in annuities? I've looked on various lead sites but they seem incredibly expensive (like $30-$50/ea) and I can't imagine the conversion rate would be very good. Any advice from VA (or Fixed) vets would be appreciated. Thanks for taking the time to read.

30-50 is cheap for annuity leads...150+ is what I normally see.

That being said...you buy 20 leads for 3k and you sell a couple of 100k and you gross 15k....you just need more of a budget to get started.

Seminars, client appreciation events, referrals, and networking are my preferred methods outside of working your book.

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do you want to add fe or annuities? You've posted you want to add both.

How about medicare supplements?

Are you unsuccessful as a financial advisor? Do you want to lose a client because you don't focus on insurance and screw up?

You might want was to work with an insurance professional just as you'd hope an insurance agent would refer someone to a financial advisor professional.

Rick

+ 1

 

[FinAdvsr]

Wow. Anyway. I've got $22M just in wrap fee. Not unsuccessful at all just not good at the khaki pant & golf shirt approach but the way I look at it, the more products you have with a client the better so I was just wanting a little feedback from the series 6 guys.

 

[Tahoe Ray]

Wow. Anyway. I've got $22M just in wrap fee. Not unsuccessful at all just not good at the khaki pant & golf shirt approach but the way I look at it, the more products you have with a client the better so I was just wanting a little feedback from the series 6 guys.

So what do make on that 22m? You should be clearing at least 200k personally (after your RIA/3rd party manager takes their piece)...

 

[FinAdvsr]

Ha! I wish. 1.35% is the fee. I get a cut of that.

 

[Tahoe Ray]

Ha! I wish. 1.35% is the fee. I get a cut of that.

Again....go indy with your book. Lpl, Ray jay, or a regional shop.

Bring 80% of your clients and give yourself a raise. You won't get a fat forgivable loan but you won't regret it.

 

[AnonymousOne]

Ha! I wish. 1.35% is the fee. I get a cut of that.

I smell a non compete/no contact wire house contract if you are thinking about going full time FE from 22mm book.

 

[scagnt83]

Annuity leads are very hit or miss. I have never found a reliable source that seemed to not be ripping me off in some way or another.


Obviously your existing clients are your best option since you have already gained their trust.

Seminars can work well. My favorite is very targeted direct mail with a phone number for them to call and a website to visit.


As a FA, I would stay away from FE. You probably see it as an easy transactionary type sale... and it is... but it is just not the direction you want to go with your setup (do you sell from the pink sheets? same type of prospect...)



Rick might be blunt, but he has a point.
It is hard to be a jack of all trades and be good at them all. Even in the insurance industry, with products that I am licensed to sell, I still refer certain business out to other agents.


Annuities are a natural fit for you since they are a wealth accumulation vehicle.
But beyond finding prospects, you need to find a high quality Upline that specializes in annuities for your carrier contracts. Then they can help you with product selection and case design.

And since that annuity upline will have life insurance & Long Term Care Insurance contracts too (usually non FE), those would be natural options for you to incorporate too. Those products also have the same prospect base. So you could cross sell. There wont be a whole lot of cross selling with FE clients, especially compared to the LI/LTCI market.


Long story short, it is totally possible to incorporate annuities and insurance into your business. But you need a good upline/backroom. As well as a symbiotic prospect base.

You will have to find one anyway for most carrier contracts. But you really need one that understands your business and has the support you will need.


Also, it just so happens that a certain poster on this board specializes in working with FAs as their insurance backroom.... he resides near a very famous lake in Nevada...

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I just reread your original post.

Why VAs?

Is it to just have some managed money so that you do not have to take on that role for those assets?

If it is for the Lifetime Income Riders; the VA market currently has extremely poor Income Riders compared to the IA market. You can find much higher rollup and payout rates with IAs.


At least since you are a FA I am assuming you plan on using the fee based VAs from Jackson & Jefferson... but take out the income rider and what is the VA giving you that you cant already do? So to me, the only reason to sell the VA is for the Rider. And if you are putting assets towards an income rider, why not make it the Rider that will pay your client the most income?