NYL TAS Contract to Independent

[ACA ALL THE WAY]

There might be a problem with you trying to switch your current NYL clients to the new companies you join with. NYL might send u a letter regarding that issue if they find out...BUT to hell w/ NYL the oppotunity is GREAT elsewhere as well!

 

[BatonRougeChicken]

I don't think my last post went through. I don't plan on switching any of my existing clients over to Ohio National. I want to sell a lot of other carriers. NYL does not offer 15 year term, 25 year term, 30 year term, term with ROP and we do not offer a lot of term products for someone age 60 and above.

I intend to keep my NYL contract as I am a registered broker and also have over $1 million in assets under management with them. I still plan on NYL being my main carrier (will do 40k+/year with them) but I want to have options to sell other companies' products.

Hence if I get appointed with Ohio National as a PGA, will NYL find out I have violated my 3 year TAS contract?

 

[VolAgent]

Hence if I get appointed with Ohio National as a PGA, will NYL find out I have violated my 3 year TAS contract?

Probably. Also, since you are a registered rep, do you have an approved OBA to do outside business, business outside of the approved brokerage? If not, you'll also be violating FINRA's rules.

 

[scagnt83]

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I intend to keep my NYL contract as I am a registered broker and also have over $1 million in assets under management with them. I still plan on NYL being my main carrier (will do 40k+/year with them) but I want to have options to sell other companies' products.
?

On the BD side you will double your income as well when switching to an indy BD..

There is absolutely no reason to keep a career contract at your production levels..

 

[BatonRougeChicken]

The reason is I am still fairly young (early 20's), and I have developed strong personal ties with my coworkers here as well as our management team. Confessingly, I do not feel "secure" enough to go completely independent yet.

 

[DHK]

Let's not confuse the issue with "what we would do".

Your original question was about the TAS and giving it up so you can produce with another company and still keep your NYL contract.

Yes, you can do that. Just don't try to hide it. There are compliance officers that have nothing better to do than to check on your state license appointments and ask you about them.

You have AUM, so you probably don't want to give up your securities registrations. But don't forget Rule #1 - Begin with the End in Mind. If it were me, I'd be trying to move all your AUM into an RIA platform so it's easier to move it to your own RIA firm in the future. Can't do that very easily if they're in a commission-based mutual fund and you want to move them into a fee-based account when you change firms.

Now, going fully independent? Maybe in the future. You'd need to "take stock" of what NYL provides for you and what you rely on them for on a regular basis (outside of personal relationships).

NYL is a TOP-NOTCH company and I would be proud to represent them as well. But I find that creating and using whatever resources I want, when I want, without asking for permission from the Home Office Compliance Deity is a MUCH nicer way to be in this business. I like representing my own insurance services firm and NOT the name of another company. I like using whatever website service that I want (I use the VSA). I like creating whatever marketing I want and knowing when I need to get a specific company's approval for that company. So, for me, I LOVE being truly independent.

Yes, I still think about going back to a career shop. But once I think about the compliance hurdles, required securities registrations and required meetings... it makes it VERY easy to stay independent. And yes, I *believe* that even if you DON'T become securities registered, everything you produce must still be compliance approved and therefore JUST AS BAD as being registered because you are "affiliated" with a B/D that must monitor all advertising.

If it were me, I'd take stock of all the training opportunities NYL afforded me: In-house LUTCF classes are a start in addition to educational reimbursement for CLU & ChFC. That's free money for your training & development. Take a look at everything else they offer you and see what it may cost for you to provide it for yourself. (BTW, if you produce a certain amount with Ohio National, they will also reimburse you for the same classes - limited to 4 per year! But LUTCF may be reimbursed by NYL regardless of production. I don't know, but you need to check it out.)

Do you need an office? Investment advisors need an office to convey a sense of stability, knowledge and wealth to their prospective clients. Insurance agents? They shouldn't need an office. How many appointments do you actually have in the office as opposed to THEIR office or home? Many real estate agents don't have an office and work out of their home & car. Merchant Card Services reps also work out of their home & car. Can't you do the same as an insurance agent? I know NYL charges you to be housed in their office - even if it is just a cubicle. I know I'm "pinching pennies" but the best profit margin is the HIGHEST one - maximum revenue, minimum costs!

Sometimes, to make the BEST decisions, you need to take your personal feelings and put them aside as best as you can. Now, as you can probably tell, I'm more for being independent as you can greatly improve on your compliance, marketing and in writing business. However, I've heard that you simply CAN'T BEAT NYL's pension for agents - no matter how hard you try.

Good luck in your decision making!

 

[scagnt83]

The reason is I am still fairly young (early 20's), and I have developed strong personal ties with my coworkers here as well as our management team. Confessingly, I do not feel "secure" enough to go completely independent yet.

I understand. I started NYL in my early 20s so I can understand what your dealing with.

My advice would be to ride out your TAS contract (I stayed only 2 years, didnt stay for all 3, but there where other factors involved with the local GA I was moving to.
The TAS contract does give you good subsidies and you will still get the good training from NYL.

But after you loose your TAS, financially there is no reason to stay.
Your B/D business is hit the worst staying at NYL. Over a 30 year career you could easily quadruple your yearly B/D takedown compared to the comp structure at NYL.

And your comp on LI will basically double (or be close to it).

Plus the independent factor.

I understand not having the confidence to go out on your own completely. I would start to look at and talk to local GAs in your area. Find one that will give you a work station (or rent you one) and that has somewhat of an office comradery.
Also look for one that has experienced agents that you can learn from.

I understand having the ties to the people and the structure of your current office. But this is about your career and your family, not about making friends.

I still keep in contact with many old NYL people, just as I did before. The only difference is that I am making twice the income I was when I was their coworker...

 

[DHK]

BTW, "Belief in NYL's WL" has NOTHING to do with this decision. While some on this board may think that the WL believers are a "religion" bordering on being cultish, it's not. It's about the tool itself, how it works and how you can help a client use it, not the manufacturer of that tool.

Now, I personally like doing business with a company that is a JOY to do business with. Every company has problems, but I don't want to be treated as though "I'm in their way". If the agent is well taken care of, the customer is well taken care of and so is the company. THAT will show through in your presentation as part of your own personal "belief system". And you know that if you place a good amount of business with ONE company, you know more about the underwriting, and can have a better time getting underwriting concessions than if you split it up between multiple companies.

Being devoted to one company is good... just be ready to "jump ship" if you need to. NYL wouldn't make that easy for you. As NYL is captive, it's too easy to just "drink the kool aid" because your contract depends on it. Being independent means that you get to SHOP for who gets the majority of your business. Business should go to where it is rewarded and appreciated. The more business you place there, the better you can serve your clients.

Just my opinion.

 

[scagnt83]

Good points DHK.


Also, the longer you stay at NYL, the harder it will be to leave.

Think about this.... every case you place going forward knowing that you want to go indy, is one more case that is NYLs and not YOURS..

Im not saying that you need to leave this second. But as low as the third year TAS subsidies are, they are really nothing to be excited about.

 

[BatonRougeChicken]

I'm going to leave the NYL TAS contract but stay an agent with them. Second year training subsidy is $20k/year. If I stay a NYL agent, I get to use the phones for like $10/month, copiers/printers for free and my cubicle space is only $80/month. I still get renewals from my old clients, can cross sell them, still manage their investment clients. I think it's a good deal. All in by breaking TAS contract I give up:

TAS/Training subsidies: $20,000k/year
Mileage Reimbursement: $6,000/year
Telephone Reimbursements: $120/year
Cubicle Reimbursements: $960/year

If I break my TAS contract and go established agent with NYL, I get roughly 65-70% payout on the life insurance products. I get 50% payout for investments through the grid from my B/D. PLUS I get 100% payout from Ohio National! Not too bad of a tradeoff.