What is the best way to position

When I was at a bank I had a good deal of success with structured notes,

laddered bonds and bond portfolios that issued a coupon check every

month.



Later, I would present a portfolio of zero coupon T Bonds with an equity

mutual fund, which I call “bullet proof”.



Good Luck!

Thanks for the input skee.

Were these HNW folks?

I am usually seeing $50,000-$200,000 sitting on the sidelines.  I had always assumed that a laddered bond portfolio needed more than this amount to be beneficial.

No way. You can buy 5 tranches of $40K total $200K.



Bank clients like money coming due every year…I guess it gives them a rise

in the pants.



Always start with the annuity and work down in production.

"I am an old insurance guy that has landed in a bank brokerage operation.  Needless to say there are a lot of retired folks with money in CDs, money markets, and savings accounts.  They generally dislike annuities although I can get enough folks to listen.  I feel that fixed income would be a good alternative"

"Always start with the annuity and work down in production. "

PERFECT.......And they say the stereotype of the bank FA is outdated? Yup, just try to slam then into that annuity first, then if they object consider something else......

Try a bond fund?  See if Franklin has a muni fund for your state and talk about taxes.  Thornburg income fund is decent too.  I’m just talking about the marketing material.  Show them that the NAV fluctuates some but not much, and the returns are better than CDs.

Blarmston:



I felt the same as you about stereotype bank brokers. But when I did

$20,000 month and they were doing $70,000 a month, I changed my

opinion.



Take care.

Skee,

Yeah, I could quadruple my monthly production if I slammed everyone into the highest producing product out there. I have friends back east at B of A, HSBC, Chase, and a buddy at Bank One in Phoenix that ALL tell me that the annuity is the FIRST product they think about when a new victim comes walking into their branch.

[quote=Dewey Cheatham]

What is the best way to position this sale?

Income generation for retirees/ non correllating asset for non retirees

What are the hot buttons?

yield talks, everything else walks

What are the features and benefits.

Monthly/quarterly/semi annual income- to meet income/portfolio needs

Moody/S&P ratings- allows customization of risk with use of an unbiased third party credit rating agency. Belt and suspenders to bet the pass line flexibility on a case by case basis.

laddering/ maturity selection- enables a portfolio to be custom tailored to each client's unique future income needs

Tax Free- maximizes client's in pocket income.

For a small percentage of fixed income I have been using closed end floating rate funds. You must be careful though I only use ones that are trading at a deep discount 10% or more! And watch the the leverage on the issue also! 

I never purchase these these at the IPO. If you work for a  wire house they will  try to push them right at the start but remember they could care less about you or the client it is all about moving money for them!     

I also have used open end floaters for the past couple of years.

Blarmston:



Do your family the favor and slam a few a month and double your

production. Of course we don’t have the benefit of knowing who each other

is or our resumes, so I’ll remain civil on this thread.



The bank model favors the high production ticket if you have a steady

stream of fresh money. I, on the other hand, do not and must balance my

opportunities in order to optimize my income.



It sounds to me like there’s a little envy in your position.

Blarmston:

I see similar actions in my bank program.  When I came aboard here almost two years ago my manager told me 80% of the business was in fixed annuities.

That number must be less today.

I am the "anti-bank broker" perhaps as in my tenure here I have sold a grand total of two fixed annuities and zero VA's.   The two FA's were unsolicited btw as I tried to talk them out of it.

Most of my practice is mutual fund wrap accounts using a variety of asset allocation models.    As my practice matures I plan to introduce some other products and Long Term care insurance sounds like a good fit for many of my clientele.

scrim

[quote=skeedaddy]Blarmston:



Do your family the favor and slam a few a month and double your

production. Of course we don’t have the benefit of knowing who each other

is or our resumes, so I’ll remain civil on this thread.



The bank model favors the high production ticket if you have a steady

stream of fresh money. I, on the other hand, do not and must balance my

opportunities in order to optimize my income.



It sounds to me like there’s a little envy in your position. [/quote]



Skeedumba$$,



I assure you there is no envy in my post.  You think $70K per
month is something to boast?  For many out here $70K is a small
portion of production that is generated every month for showing
up.  I was in a bank watching morons like you who have conviced
themselves along with most of management that they are smart. 
Your not, your just greedy.  You and yours are the reason so many
honest advisors have to jump through hoops to do the right thing. 




Take your posts and send them off to the NASD, and see what they
say…do it.  I hate poeple like you for your view, but
appreciate you because you are like the flu- we would not know how good
being healthy is if we did not have to experience bad sickess
occasionally.

Skee-

I believe Rightway just made you look silly....

I’m lost…is Rightway your alter ego? How can I address Blarmston and get a

response from Rightway (in the 1st person)? You must be doing very well, I

mean you and “Blarmston” have the time to post over 700 times on this

forum.



Anyway be that as it may, $800K-$1 million in production puts me or

anyone in the top 2% of this field. It sounds like you’d rather limit your

income to a fraction of 1% per year, that’s fine.



By the way, after 12 years in the biz, I have never been the subject of any

customer complaints.   

[quote=Greenbacks]

For a small percentage of fixed income I have been using closed end floating rate funds. You must be careful though I only use ones that are trading at a deep discount 10% or more! And watch the the leverage on the issue also! 

I never purchase these these at the IPO. If you work for a  wire house they will  try to push them right at the start but remember they could care less about you or the client it is all about moving money for them!     

I also have used open end floaters for the past couple of years.

[/quote]

PHD?

[quote=skeedaddy]
Anyway be that as it may, $800K-$1 million in production puts me or

anyone in the top 2% of this field. It sounds like you’d rather limit your

income to a fraction of 1% per year, that’s fine.



By the way, after 12 years in the biz, I have never been the subject of any

customer complaints.   [/quote]



Some people are doing $1m plus without “starting with an annuity and
moving down” to “take care of me and my family” or to “get paid”. 
You are in a bank, you will get complaints soon, just wait. 



I post alot alot because I like to.  This is a nice locaion to get
some different views, idea’s, and information, thas all.  When you
post, you are not posting to one person, if you want to do that, send a
private mesege.  Its a FORUM. 



Lastly- I find it hard to believe that only 2% of reps are doing over
$800K.  I have nothing to back that up, but if that is the case,
it is a little sad.  Enough, enough, go feed your family, I am
going for a hike.

I was curious so I did some research and in my program it appears that about 2% are doing over 800k.

Average rep is doing approx 300k.

(I'm at 200k doing mostly managed money without any trails yet so I'm pretty satisfied where I stand)

top quintile is doing 400k this year.

My thoughts are that productions numbers are down a bit since fixed annuities have been a tougher sell in '05.

TGIF

scrim

Start slamming everone who walks into your branch with some variable annuities then…

[quote=skeedaddy]Blarmston:

Do your family the favor and slam a few a month and double your
production.  [/quote]

Or, you could take the long term view and do your family a favor by way of doing your clients a favor and doing the right thing by them. 

Then, when your client's happy, your book grows (happy clients bring referrals), your income grows, your family's happy, and  they they don't have to consider how you'll make ends meet after the regulators end your career and force you to work at a Kwicky Mart because you thought you'd get ahead by "slam[ming] and few a month".

Well, I never would have guessed that suggesting that one can make

substantial compensation in this business would elicit such ire from

colleagues. I also couldn’t have imagined that I’d be in the company of a

bunch of immature boneheads with multiple personality disorders.



As I said before, we do not have the benefit of knowing much about each

other. So I will volunteer some additional info:



I am not with a bank, I am independent. When I was with a bank, back in

1994, I learned about VAs. Not much has changed since then. If you are

at a bank, as Dewey stated, then you are expected to produce on par with

fellow producers. So if annuities are a significant part of that institution’s

business model, then you won’t keep pace (or your job) just rolling over

brokered CDs.



To see how a professional does things, read Septembers Registered Rep.

article “Are you charging enough?”



[“How he revamped his traditional brokerage practice into a wealth

management machine has a lot to do with figuring out the value of his

services. “Every deliverable we provide we first see if we can afford, so we

do the math,” he says, analyzing time and hard costs, as well as resources

needed to provide it. The minimum fee of $11,500 was calculated to

ensure he’d be able to continue his lifestyle, pay his four staff members,

as well as the taxes on the business and fund his future goals—his own

financial plan, he says. “You’d be surprised how many advisors I speak to

haven’t done this,” he says.”]



When you consider the effort, the time, the rejection and the pressure of

this career, why would you just settle for a fraction of wrap fee?



Good night, my martini is waiting.







     

[quote=skeedaddy]Well, I never would have guessed that suggesting that one can make substantial compensation in this business would elicit such ire from colleagues.      [/quote]

If that's what you took from the responses to your slam-some post, you're too ethically challenged to be helped.

[quote=skeedaddy]


I am not with a bank, I am independent. When I was with a bank, back in

1994, I learned about VAs. Not much has changed since then.




     [/quote]



I think your at a bank.  Not much has changed with the VA since
1994?  7 YEar Step up’s and fixed buckets are running rampid in
the VA world right now…yeah right.  Your an idiot.

Hey numb-nuts,



Yes you, Rightway, or whatever you call yourself today. By the way, do

your clients know that you have multiple personalities? Despite this

handicap you landed at Merrill Lynch? You’re probably a sales assistant

or a customer service associate in one of their call centers.



You should retake the 5th grade because your reading comprehension

isn’t up to par. I’m not referring to the features of VAs, but rather the

sales culture at many banks. You know, their modus operandi.   



I’ll give you a chance to find the meaning of that now. Signing off…



SKEEDADDY

You know a VA is like any other investment.  There are times whe n it's suitable and times when it's not.  To say it is never suitable is assinine.  Yes VA's are oversold because they pay high commissions but don't think they are all bad, what are you selling?  A mutual fund wrap account...  Probably charging what 1.25% + Fund fees --->  so fees are 1.75 -2-5%, hey the Integrity life VA I use has M & E of 1.0% and ETF's total 1.3-1.75%, so looking at it from a cost perspective which is cheaper? 

A VA is a risk management tool, your not comparing it with a mutual fund because the two are not the same.  One is an investment the other is a risk management tool.  Find what your client truly needs and present it with full disclosure.

I think Bankrep1 hits the nail on the head with his comments.

My personal opinion is that VA's are a compliance nightmare waiting to happen.  Add that to the fact that it is my belief that the costs don't justify the means leads me not to recommend VA's.    That is my personal choice.

It's hard to put my finger on the other reasons I steer clear from VA's.  It's just my intuition I guess.   I can't get out of my head that so much of a VA seems akin to smoke and mirrors.     If I have trouble grasping all the in's and out's of VA's how can I expect my clients to fully understand.

Happy Thanksgiving all!

scrim

Maybe you’re just slow. Just kiddin

What about a couple who both have a history of alzheimers, or any
number of other debilitating issues, who will need a steady income
dispite the fact that they will need to deplete their income to get
medicare benefits?

[quote=sethllanford]What about a couple who both have a history of alzheimers, or any number of other debilitating issues, who will need a steady income dispite the fact that they will need to deplete their income to get medicare benefits? [/quote]

If you don't have enough time to get their estate in order?  (see below)

Immediate annuity and a reverse mortgage.

Get them liquid and get them income to survive on now.  When they transfer to the extended care facility then the facility will get their income.

[quote=sethllanford]What about a couple who both have a history of alzheimers, or any number of other debilitating issues, who will need a steady income dispite the fact that they will need to deplete their income to get medicare benefits? [/quote]

You mean medicaid, I hope...Mediacre everyone gets at 65

[quote=scrim67]

I think Bankrep1 hits the nail on the head with his comments.

My personal opinion is that VA's are a compliance nightmare waiting to happen.  Add that to the fact that it is my belief that the costs don't justify the means leads me not to recommend VA's.    That is my personal choice.

It's hard to put my finger on the other reasons I steer clear from VA's.  It's just my intuition I guess.   I can't get out of my head that so much of a VA seems akin to smoke and mirrors.     If I have trouble grasping all the in's and out's of VA's how can I expect my clients to fully understand.

Happy Thanksgiving all!

scrim

[/quote]

Scrim,

There is no compliance nightmare.  Not if you use a VA for the purpose it was intended for.  Anything is a compliance nightmare if you abuse it.  Put your clients first.  VA w/ a living benefit is the only thing that can guarantee market participation with insurance protection.  I know some idiot is going to chime in and say an index annuity can, but please do some research the index is an alternative to a fixed annuity or CD. You will avg 4-6% over 5 years at best.