Dave Ramsey

[DHK]

My life producer just lost a nice UL based on this guys advice. PH called and cancelled 4 policies before even getting approved on the new term policies they decided to switch to. A UL that was 20 yrs old and paying for itself !!

Is this the new Jim Jones ?

LOL! "Stupid is as stupid does!" Wait til he sees that the premiums on his new TERM policy will be HIGHER than his "paid up UL" policy!

ALWAYS note the biases in every one's advice for your clients! Including YOUR advice!

The media? To attract SPONSORS! To sell BOOKS!

Show your clients their websites and see if there isn't a single ad on their websites that promote a financial sponsor? If there isn't one... (yeah, right!)

THINK ABOUT IT! Even the Wall Street Journal! That hack "Jonathan Clements" is a moron. Why does he get published? Because his stuff helps to sell WSJ subscriptions and attract sponsors.

Suze Orman and Dave Ramsey are in the same spot too. They attract SPONSORS. They sell BOOKS and other products. They tell people what they think they want to hear - so they help confirm the public's "bias" as well.

BTW, what KIND of sponsors? Typically sponsors that are financial institutions - banks, brokerages and term life companies.

These are the companies that work very hard to illustrate that "they are really doing you a favor by taking your money" kind of BS.

What is YOUR bias? To offer advice for insurance that will work FOR your clients - in good times and in bad times. You don't have any books to sell or "sponsors" to attract. You want to take good care of your clients with products and strategies that WORK.

And if you explain that, and they STILL want to follow Suze or Ramsey's advice... well, don't even sell them term. Let them buy it from them and see what kind of ongoing service and advice they get. Fire them on the spot.
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Remember, there are only 2 kinds of sales - the easy one and the one you don't get.

 

[LGilmore]

The guy owned a UL? Should have told him he already owned a term policy. No need to cancel as there is little difference between a UL and level term policy outside of the innner details. One shows you cash accumulation and the other doesn't.

I would have asked the guy if he purchased level term? If so, why was he replacing one level term for another?

 

[WinoBlues]

I have lost a few to Ramsey. But I have also made some sales due to him.

When I get a call like that I can usually tell. If they want to cancel a product that I feel is better for them I explain why. If they still want to cancel, I ask where they want the check mailed.

I then go into my Primerica talk. If it makes sense to them to buy term and invest the difference. Then it makes sense to buy the lowest cost term so they can invest the most difference. I can compete with the best. I also explain that with some big TV agency they are a customer that will be working with a customer service rep. With me, they are my client. They will be working with me. I also add the what ifs. What if plans do not work out and they need to convert part of the coverage down the road? My plans offer conversion options and terminal illness riders at no additional cost.

If they still feel that Zander's sales agency is better for them. Great, no problem. "May I keep in touch from time to time?" I now have an X-Date for my system. Guaranteed they will hear fro me more often than from "Josh" the service rep.

 

[stormtracker]

Dave's advice is usually sound, but definitely "cookie cutter." His tendency to point callers toward debt-free goals usually exceeds the ability of most households. The best advice I ever heard was from the old business guru Bruce Williams who told his callers, consistently, that if their income was over $100k to seek investment advice. If under that mark, you're not realistically in a position to worry about investments.

 

[j20a00g]

Dave's advice is usually sound, but definitely "cookie cutter." His tendency to point callers toward debt-free goals usually exceeds the ability of most households. The best advice I ever heard was from the old business guru Bruce Williams who told his callers, consistently, that if their income was over $100k to seek investment advice. If under that mark, you're not realistically in a position to worry about investments.

That's absolutely ridiculous. I have many clients that make under $100k that invest a large portion of their income. Also, how about the people that live off of the income of their investments?

$75k a year to a family with a $300k mortgage, $30k in car debt, and other living expenses may not be in the position to invest much however, $75k a year to a couple, no mortgage, no car/credit card debt, small living expenses can go quite far in the investment realm.

if that's the 'best advice' that you've heard than that is quite sad.

 

[BTFuzz]

That's absolutely ridiculous. I have many clients that make under $100k that invest a large portion of their income. Also, how about the people that live off of the income of their investments?

$75k a year to a family with a $300k mortgage, $30k in car debt, and other living expenses may not be in the position to invest much however, $75k a year to a couple, no mortgage, no car/credit card debt, small living expenses can go quite far in the investment realm.

if that's the 'best advice' that you've heard than that is quite sad.

Totally agree.

 

[DHK]

If your outflow exceeds your income, then your upkeep becomes your downfall!

You can't judge someone's needs by income alone. That's only a small part of the financial story of someone's life.

 

[WinoBlues]

If your outflow exceeds your income, then your upkeep becomes your downfall!

You can't judge someone's needs by income alone. That's only a small part of the financial story of someone's life.

Right on.

I have some gardeners that can pull $1,000 out of their pocket. I also have some middle management types that have a hard time keeping their $100. premiums current.

 

[stormtracker]

Totally agree.

Keep in mind, we're talking investments-- not savings. It seems to me that one would not realistically take money from savings or budget to invest, if in the under $100k income stream. Bruce Williams was a business expert long before Dave Ramsey ever earned his first million. I'd tend to believe what either of these two would recommend (except for dumping WL for term.)

 

[BTFuzz]

Keep in mind, we're talking investments-- not savings. It seems to me that one would not realistically take money from savings or budget to invest, if in the under $100k income stream. Bruce Williams was a business expert long before Dave Ramsey ever earned his first million. I'd tend to believe what either of these two would recommend (except for dumping WL for term.)

Well, 20 years ago well before I was in insurance I was in electrical construction. Made about $40k per year. Bought my first home, had a nice car....my uncle was/is a financial advisor. I was an investor at that time. Not big, but a consistant investor. In my opinion, it's all in individual discipline.