Anyone familiar with Nationwide Financial

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jul 11, 2006 5:30 pm

This is an insurance company that stresses you make some money ($18k in

insurance revenue) for the parent co on the insurance side but on the

investments side doesn't have any limited families that you can offer from,

and offers high payouts (>60%) on dollars generated through the

independent broker-dealer. It seems like the 1st year expectations here are

much lower than the big 4. Anyone have any perspective on this? I'm

thinking it could be a good place to get started for the sake of survival. I

didn't consider almost any insurance cos b4 since they have such limited

offerings normally, but here they have WRAP accounts and more than just a

set of funds you can ofer. You own your book after 5 years they claim. Does

this sound decent and offer enough investment related business so as to not

feel like your whole career is insurance-driven? Any help appreciated.

Jul 11, 2006 10:06 pm

yes- do it.



Jul 11, 2006 10:08 pm

Take a look at their product line and you'll have your answer.

Jul 11, 2006 11:07 pm
lovetoraise:

This is an insurance company that stresses you make some money ($18k in
insurance revenue) for the parent co on the insurance side but on the
investments side doesn't have any limited families that you can offer from,
and offers high payouts (>60%) on dollars generated through the
independent broker-dealer. It seems like the 1st year expectations here are
much lower than the big 4. Anyone have any perspective on this? I'm
thinking it could be a good place to get started for the sake of survival. I
didn't consider almost any insurance cos b4 since they have such limited
offerings normally, but here they have WRAP accounts and more than just a
set of funds you can ofer. You own your book after 5 years they claim. Does
this sound decent and offer enough investment related business so as to not
feel like your whole career is insurance-driven? Any help appreciated.


you may want to consider changing your name from lovestoraise to cantraise. just for the sake of accuracy.

Jul 12, 2006 9:13 am

If you don't want to feel insurance-driven, DON'T HIRE ON WITH AN INSURANCE COMPANY.


This should be painfully obvious to anyone with active brain waves.

Jul 12, 2006 9:25 am

there is nothing wrong with starting out selling insurance- a lot of advisors start out that way-



Jul 12, 2006 10:16 am
TexasRep:

there is nothing wrong with starting out selling insurance- a lot of advisors start out that way-



Absolutely true--in fact a young person should not join a securities firm until they have sold life insurance for at least five years.  Gain the seasoning and all that.


But let's talk about insurance sales.  There are different types of insurance that can be sold.


The one that lends itself to securities sales is semi-sophisticated life insurance, not bare bones term policies like those pushed by Primerica.


What also does not lend itself to securities sales is P&C insurance.  That type of coverage is not voluntary, consequently people who think they're developing selling skills are actually thought of by hiring managers as nothing more than order takers.


You have to have car insurance and you have to insure your home--but you don't have to have life insurance, so those who sell it develop selling skills.


Nationwide has been selling mutual funds since the 1960s--bet you almost never run into them as competition.  That is because most of their agents are not interested in mutual fund sales, that requires an entirely different level of relationship with their clients and the "average Joe" who is buying mandatory coverage for his pickup and double-wide doesn't have enough disposable income to open a mutual fund account that motivates the salesman to bother with the paperwork and subsequent hand holding.


There are several of these efforts being made.  Allstate is having horrendous results in getting their people to pass Series 6 and 63.  Apparently there are not good brains attached to the "good hands people."


A great many State Farm agents have a Series 6 and will fill out the mutual fund paperwork if the client begs.


Liberty Mutual tried but quickly gave up.


Primerica is in this market with mutual funds that involve front-end loads of 50%.  Don't you know that an investor just beats a path to that door--"Please show me a mutual fund that will take fifty percent of what I invest as sales charges.  I need that right now!"


The justification for the NASD to even allow such things is the argument that somebody who is going to have $10 per week taken out of their paycheck is not going to be interesting to a salesperson unless $5 of that $10 is a sales charge.


For those who have not studied this stuff, those crazy high fees only last for a year or so--and the NASD figures that's how long it takes for the guy to become comfortable with the fact that their paycheck is a little lighter but they're saving.  So penalize the hell out of him for a year or so and make him stay with the program--in the long run you will have done him a favor.


Getting back to selling insurance--go to a company that offers more than just term policies.  The skills necessary to present some of the sophisticated life products rival the skills necessary to sell securities--and sales managers at the securities firms recognize that.

Jul 12, 2006 1:13 pm
NASD Newbie:

There are several of these efforts being made.  Allstate is having horrendous results in getting their people to pass Series 6 and 63.  Apparently there are not good brains attached to the "good hands people."


A great many State Farm agents have a Series 6 and will fill out the mutual fund paperwork if the client begs.


Liberty Mutual tried but quickly gave up.


Primerica is in this market with mutual funds that involve front-end loads of 50%.  Don't you know that an investor just beats a path to that door--"Please show me a mutual fund that will take fifty percent of what I invest as sales charges.  I need that right now!"


The justification for the NASD to even allow such things is the argument that somebody who is going to have $10 per week taken out of their paycheck is not going to be interesting to a salesperson unless $5 of that $10 is a sales charge.



So where are you pulling this statics from?


As for 50% front end load ..... on a mutual fund? Whose product lines is Primerica selling? (I didn't realize there were any contractual plans still out there?)