After the recent choppiness in the market, annual meetings with your clients for re-allocation can be difficult. Especially if there is a rider attached to their indexed annuity.
That annuity that we said would not lose money, may have decreased in value on the statement. We all know the income is safe and not affected by this. However, what the client sees on their statement is the starting balance and the ending balance less any rider fees. Explaining this can be difficult, because the client sees it in black and white. When we set up the allocation, it is tempting to diversify in the markets with strong caps or par rates. They give your client the best upside potential long-term, and we all want what is best for our client. But, don’t forget an allocation to the fixed rate. Right now, fixed rates are at historical highs. Even if it’s enough to cover the rider expense, at least you will have a positive (on paper) return to show your client. For more tips like this, please reach out by booking an appointment below.
0 Comments
This is really simple. If you are looking for some answers or maybe a business strategy, then let's spend 20 minutes together.
Call us or click to book an appointment with one of our marketing consultants and let's win together. What do you have to lose? Invest 20 minutes and change your life. Some financial professionals are viewing this time period as full of opportunity. Some view it as the end of an era. It reminds me of a great historical novel by Charles Dickens, "A Tale of Two Cities."
Allow me to quote, as nearly as I can, the opening of this great book. "It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way." Does this sound like our industry today? Are you a glass half full or a glass half empty type of advisor? Let's investigate… Is prospecting a little tougher? Sure it is. Between do not call lists, caller ID and the dreaded delete button response to emails that you send, it can be the epitome of a tough crowd. Seminars are getting too expensive? But does that compare to a drop in business? There are new seminars both with and without meals. But, you have to invest in yourself. Is the digital world too hard to navigate through? If you don't know how to develop a good website or content, let us do it for you. Or how about a good standing with Google and how to disseminate your info to the world? You may not be up to your full potential, unless you have an organization that will do that for you. Not feeling the love from your IMO? It is time to pick a team to place most of your business, and it should be a business that always has your back, but the respect needs to be mutual. A lot of IMOs and companies are now focusing on the players that are treating them as partners. So, let's summarize: We have a declining number of agents in our business and it is declining at a rate that the industry has never seen before. We have 10,000 boomers turning 65 each day and in need of the products and services we provide. At The Ohlson Group, we believe that these are the best of times in our industry. There will be big winners and also big losers. It just depends on how you view this situation. I will close by quoting a great motivational speaker, "The only thing that's stinkin' is your thinkin'." Get on the right side of this story. Give us a call today. Until next time... good selling! These are very interesting times in the financial services industry. We’ve had many unusual challenges in the past, but today, the threats affect every part of our business. Today, I am focusing on the insurance based industry and all that participate in this arena. All parties are making plans. The big question is... Will you/we be part of the plan? Let's look at a few of the challenges:
The first is the declining ranks in our business. Agents/advisors are getting older and there aren't enough "new babies" coming into the business. So, the insurance companies are wondering where they will get the production. Will the independent/IMO channel give them the desired premium or do they focus on alternative distribution through banks, broker-dealers and direct response? I think you will see a little of each. I don't think, at this time, that they will forsake the independent channels. What about IMOs like The Ohlson Group? We are in the same boat. We have to always have a plan to garner the appropriate amount of premium to have enough profit to fulfil the promises made to our advisors. Fortunately for us, we have a strong life insurance background and have been increasing life sales to complement our annuity sales. What about the most important asset… the advisor in the field? How will they continue to get in front of good qualified prospects, keep their expenses reasonable, and grow as planned? Will the DOL/Fiduciary rule get in the way? Will commissions be reduced or spread out? Who knows… but we must keep moving forward. So, what are some of the answers being produced? Collaboration: Loosely defined, cooperative arrangement in which two or more parties (which may or may not have any previous relationship) work jointly towards a common goal. This is what we’re doing at The Ohlson Group. We have many mid-sized IMOs and agencies that are now working with The Ohlson Group to take advantage of our digital marketing prowess and are in the Safe Money Places Agent Network. This is where we feel the greatest growth and prosperity will occur. We also do the reverse and collaborate with other IMOs that have resources that we can access as well. A very real time example is the fact that over 50 IMOs are using AssessBEST as the vehicle to protect and enhance the careers of our advisors. Consolidate: “To bring together into a single or united whole to become, or cause something to become, stronger and more certain.” I have witnessed several IMOs that are doing this. Many are being purchased. I also think you will see the same happening with the insurance companies that don't feel as though they have enough muscle or capital to stay in the game. Consternation: “A sudden, alarming amazement or dread that results in utter confusion and dismay.” I believe that the DOL/Fiduciary rule has taken consternation to a level not seen in recent years. So, regarding this regulation, the advisor needs to make sure that the IMO is providing everything needed in the areas of marketing, research and education. Plus, the tools to make sure everyone is compliant in this brave new world. In closing, the opportunities have never been greater for us in the field. Think about it: a shrinking supply of agents and advisors, a growing population that needs and wants our guaranteed products, and an industry that will not go away. Simply put, we think we have some answers. But, we need to speak with you to find out what you want to accomplish, to analyze your speed bumps, and put together a plan. I guess you would say that we want to collaborate. Want to give it a try? Give us a call or simply click below to set up an appointment with one of our Marketing Consultants. I think the time is right. Until next time... good selling! Unfortunately, there is a lot of this going on in our business today. Some agents/advisors see new challenges that appear to be too big to overcome. Now, I am well aware that some of the "elder statesman" in our business will just decide to back off the throttle and not deal with this "new reality" facing the financial services professional. They have been the ones that made this business great and they want to now just back away and enjoy the fruits of their labor. So, to this group, "We salute you.” But what about those in the business that say things like, "It's just not the same business anymore.” Or, "I am just one person and I can't compete in this new world?”
To all of that, I say wake up and get back in the game. It’s time to align yourself with an IMO that will help. But, as many are finding out, IMOs are looking for people that still have some kick and are looking at these challenges as great opportunities. We, as IMOs, are more than willing to roll up our sleeves and help the advisor reach newfound levels of success. This is going to be a partnership. We all have to win and that is the way it is supposed to be. Andrew Carnegie once said, "There is no use whatever trying to help people who do not help themselves. You cannot push anyone up the ladder unless he is willing to climb himself.” If you are feeling like there is so much going on that you can't focus, that isn't unusual. You have to take things one step at a time. If you will allow me to quote another great person, Winston Churchill, he said "It is a mistake to look too far ahead. Only one link in the chain of destiny can be handled at a time.” You just have to get back in the game. There is a public that needs what we do. They need our counseling, our assessment of their situation, and a product recommendation and implementation that helps empty their "worry buckets." So, what is your next step to get back in this exciting game? Pick up the phone and call someone you have confidence in. In our case, I hope that call goes to The Ohlson Group. You need that "Master Mind Group.” These are the people that are truly sympathetic and empathetic with your goals, dreams and desires. These are people who profit when you profit. Again, I am confident that The Ohlson Group can fit that bill. Then let's talk about what you enjoy, what you are good at, how you want to be viewed in the public and we move forward. We develop the marketing plan, have you set up a marketing budget, increase and improve your digital footprint and we are on our way. It is time to do something now, because if you are not moving forward, you are moving backwards. In closing, I am going to bother you with a quote from Theodore Roosevelt who gave some great advice. "In any moment of decision the best thing to do is the right thing. The next best thing is the wrong thing, and the worst thing you can do is nothing." Give one of our marketing consultants a call and get on the road to the greatest level of success that you have ever experienced in our business. Until next time... good selling! Dale Carnegie once wrote, "You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you." Interesting right? But what does that have to do with what we do for a living? Plenty, I say… plenty. We need to make sure that the prospect and client feels as though we care about them before they will care about us.
Too many in the financial services business (and other fields as well) are prescribing solutions prior to assessing where the problem is, like a doctor prescribing a drug before he even asks you where it hurts. If that happened to you, would you shut down, not pay attention, leave and find another physician? Of course you would and that is why many sales are lost in our industry. Let's look… Everyone has worry buckets: those heavy things we carry around that keep us up at night. Some of these buckets are kept private and, in your opinion, not open to discussion with others. Why? Maybe for the fear of others not understanding, the fear of looking foolish, the fear of being rejected. Most of us will not discuss our "worry buckets" until we believe that person we are confiding in is truly empathetic and sympathetic with our goals dreams and desires. Yes, just like the "Master Mind Group" in Napoleon Hill's book, The Master Key to Riches. Where am I going with this? We have one mouth and two ears, so we should be doing twice as much listening. Try asking your clients and prospects where it hurts and find out what keeps them up at night. How do you get to these questions and answers? You have to have an assessment system. Don't have one? Talk to us about AssessBEST and some of the other client building tools that we have. Ladies and gentlemen, this is not so hard if you have a system. If you are just "winging it" and looking hungry, than this is truly the most difficult profession in the world. Need help? Call us and find out why agents from coast to coast continue to refer to us as... a different experience. It seems like, for many of the lucky ones, retirement is either creeping up or it is already here. Where did the time go... right? When younger, we thought we had plenty of time to cement, activate and protect our financial dreams and plans. As they say, life has a funny way of screwing up plans. And if you and your clients are like most, you wish you had some more time to get things where you wanted them to be. Let's take a look at one of the biggest "worry buckets" for today's retirees... retirement income.
I am assuming that you have been reviewing you clients retirement income needs and have separated essential income needs from discretionary ones. Then I am assuming you reviewed their guaranteed income(s) from sources like Social Security and pensions and placed them alongside the essential expenses. This allows you to see if they are in a "negative" position - without enough income or a "positive" position - where there is money left over for the discretionary needs… such as legacy issues, vacations, gifts, donations, etc. Let's also not forget the big health care worry. Your client either has long term care or they don't. That situation won't change. You have also explained the benefits of life policies with accelerated benefits for chronic illness (more on that at a later writing). Ask your clients, "How much do you need and when do you need it?" Then, with an fixed index annuity with an income rider, you can guarantee that cash flow... if they have the funds for the annuity. Let me repeat that, "... if they have the funds for the annuity." But what if they don't? Is there a way to still fulfill those income needs? Well, yes... maybe for both, but surely for one. That is where John Wayne comes into the picture. Let me explain. Okay, the male Baby Boomer thinks he is John Wayne. You may remember that many Boomer women left their teaching jobs, nursing jobs and other professions (either forever or for a period of time) to raise the kids. "Daddy Boomer" still thought he was the protector and main bread winner. And you know, it worked out...didn't it? Then the moms were in charge of every volunteer group in America. America has never seen such a large group of quality, educated people in the volunteer corps. To continue, the male took care of the finances and told his wife that everything was going to be okay. Now, at retirement, "Mr. Boomer" finds out they are a little short. They don't have enough money to fund the shortfall through an annuity. He must protect his spouse and knows that is what John Wayne would do. How can he complete this dream for his spouse? There is only one way: through life insurance and "the miracle of paper and ink.” Let's look… Pretty simple. They have a $25,000 per year income shortfall if he pre-deceases his wife (loss of the smaller social security check, reduction in annuity pay out and rising health care costs down the road). How much is needed to fund this $25,000 shortfall? I say that he needs $500,000 of coverage. You may say "WOW" but that's just the facts - $500K at 5% interest payout is $25K per year. If he dies later, life expectancy changes and he won't need that much. Remember, we are funding the entire amount. So he says she can take out 10% and be okay... then he needs half or $250K. Need smaller amounts? Let’s partially fund the dream completion. Here’s the bottom line: Boomers are buying more life insurance. They are purchasing everything from final expense, to term insurance, to permanent coverage. But you have to probe and ask them if they are interested in “dream completion.” Need a way to get into that conversation? Give us a call at 1-877-844-0900. The additional income you earn helping others with their dreams, might just be the thing that completes yours as well. Access to financial information, consumerism, regulatory changes, and a shrinking agent/advisor field force are shaking up the financial services industry, and whether we like it or not, these changes are here to stay. Today, I'll zero in on the "insured" products: life insurance and annuities. I'm aware there are many other "safe money” products like Medicare supplements, critical illness, disability income, and more, but for our audience, I'll focus on life insurance and annuities as they're the products our readers are most likely to sell.
The current situation isn't new: the insurance industry has long grappled with the aging of the field force. LIMRA, along with other research firms, continues to highlight that the average age of the field force is around 58 or 59 years old. Some studies suggest this age is decreasing. Why? In my view, it's due to the retirement and passing of agents who began as career agents and have generously fueled our industry with sales for many years. Others may attribute it to the challenges of digitalization and regulatory hurdles, prompting some to leave prematurely. So, what does this mean for the industry? (And remember, you're part of it). Let's delve into it... Regardless of what unfolds in Washington or elsewhere, there's immense pressure on insurance companies to revamp delivery channels to drive more sales, better sales, compliant sales, and more profitable sales. This entails reducing costs and enabling consumers to purchase when, where, and how they prefer. This shift includes online sales of more transactional products like term insurance (Yes, I'm aware "Big Lou" is already selling term on Sirius, and he's on meds too). There's also a push to develop products that consumers actually want to buy, not just the ones sitting on shelves for years. Furthermore, insurance companies are seeking strategic alliances/partnerships with marketing organizations and banks to deliver quality, compliant, and suitable sales to consumers. Nobody wants to be part of a scandalous expose on bad sales - with social media, it only takes a moment, and you'll be defending yourself indefinitely. So, where does this leave us... the current delivery system for these products? I believe we're in the "catbird seat" if we're perceived as credible and integral. So, where do we begin? As much as I disapprove of the DOL/Fiduciary rule, I believe it will spotlight the good guys and girls—the ones who've always prioritized their clients’ best interests. I think the requirement to use assessment tools before making recommendations will result in more sales, larger sales, cross-selling opportunities, and more quality referrals. I also believe boutique marketing organizations, like The Ohlson Group, will be the go-to marketers for many insurance companies. These are organizations whose members have acquired quality designations, possess home office experience, and prioritize quality over quantity. I anticipate carriers will steer clear of “spreadsheet” organizations—companies that merely market the product of the day. That's why we're excited about the future. However, today's advisor deserves and needs more. Okay, let's talk DOL, as it's driving consumer awareness towards best interest principles. Advisors need training on how to use the new assessment tools and also instruction on how to make it a productive income driver in their practice. If advisors view the tool as a mere obligation, they're missing out on a tremendous opportunity to become the retirement go-to person in their community. The Ohlson Group is qualified and ready to lend a helping hand. We'll help you become “digital ready” in your practice. We'll assist with client/prospect engagement, periodic reviews, presentations, and provide quality content for your clients and prospects every month. All of this isn't new. The industry has been aware of these trends for years, yet many chose to ignore them. However, based on my discussions with some of our partner companies, I'm encouraged to see they're not seeking an alternative distribution system. They're seeking additional distribution systems. Can we blame them as our ranks dwindle, and consumers have different buying preferences, such as purchasing online? Well, we're adapting, we have e-apps, and the future has never been brighter for those seizing the opportunities. Give us a call, and you'll understand why agents from coast to coast have always referred to us as... a different experience. Until next time... good selling! If you are retiring, congratulations! I’m sure that you have earned it and I'm wishing you the happiest and healthiest of retirements from your friends at The Ohlson Group. However, if you are one of the advisors that has just had it and won't live with all these changes because things will never be the same... then you are who I want to speak to. Please allow me to comment and make an offer.
Call us crazy, but at the Ohlson Group, we believe that we are entering the golden age of life and annuity sales. Think about it: 10,000 people turning 65 each day, less than half of baby boomers have $100K in retirement savings and they all need our help. And our insured products are the only ones that make sense for most Americans. Also, there is less competition because many agents are retiring and some (maybe you) have just had enough, "I’m not going to take it anymore." So, for agents quitting and agencies looking for help, we have the answer. Here we go: We at The Ohlson Group will pair you up with a successful member of The Safe Money Places Agent Network in your area. We will supervise the servicing and sales to clients in your book. Sales will be made and you will be placed on the application for a percentage of all new sales. Think about it. No one is going to pay you a lump sum for your book of business. But a member of "The Network" will drip on them, write new business, and cut you in on the sales. Great deal right? What about you agency owners? You really need to call us, because we have a unique way to bring you under The Ohlson Group/Safe Money Network umbrella, where you maintain ownership while lowering your costs. We will also assist you in the recruiting efforts. So for those of you reading this and are not retiring or quitting, thank you for your time and business. If you aren't writing with us... why not? Call me, let me try to close you. For those who are retiring or quitting, call us and let's make a deal. Until next time... good selling! There has never been a better time to explore membership in the Safe Money Places Agent Network. Several years ago, The Ohlson Group purchased controlling interest in www.safemoneyplaces.com from Dr. Jack Marrion. This consumer site continues to attract thousands looking for non-biased educational material on financial tools, products and concepts. Our Agent/Advisor locator also attracts many visitors who are looking for a "Safe Money Places Pro" in their community. Moreover, The Ohlson Group has taken this concept to a much bigger value proposition. If you are not a member, than you need to check this out. In my opinion, you can't afford "not" to be a member. Allow me to give you an overview of this "non-franchise" opportunity and what it would cost you to replicate in time, money and manpower. Buckle up... the tour is now beginning.
We operate off of the principles of SCIP: Service, Credibility, integrity and Profitability. We have always stated that these four attributes must be there for all participants in every financial service transaction. The sale, service and marketing of life and annuity products are no different. At this point, I would like to focus on the one core element... credibility. Credibility is believability: being the "go to person" regarding your specialty in your community. But the question always gets back to "Ray, I know that, but how can I get my name out there on a limited budget with limited staff?” Well we have the answers. Because it takes a whole bunch of time money and manpower to make this effective. Let's look: First off, I am going to make a statement. If you could do this on your own, you would be paying a minimum of $500-750 per month for these services. Let me get to the point: for our members, the cost to you is zero, nada, nothing. Here are a few of the benefits:
Distribution of this content on a monthly basis to your clients and prospects. This is important! You spent money to obtain a lead or client. What are you doing to resurrect that prospect and upsell or cross-sell your clients? What are you giving them that would encourage them to give you referrals? Wouldn't this lower your acquisition costs? The answer is a resounding yes! You would have to get Constant Contact, Mail Chimp or some other service and would have to arrange the timetables and distribution of these pieces to your group. We do it for you! Your website is branded as being a member of the Safe Money Places Agent Network. Landing pages are developed for you with your brand and contact info AND, all of your list gets a complimentary subscription to the critically acclaimed Safe Money News. This financial e-magazine is sent out on a quarterly basis with articles from some of the best writers in the country. We offer access to consumer webinars for members of the network. This year we will be developing short webinars for your clients and prospects to attend. This will go out under your label, and they will be recorded for multiple uses and can be placed on your website. Of course, you will be listed in the Safe Money Places Agent locator on www.safemoneyplaces.com. For our “Producing Partner” members, we give you a quarterly allowance to help pay for your marketing, research, and education expenses. In summary, there is a lot more to mention but we would rather speak with you. The DOL/Fiduciary rule has changed our business forever. DOL delay, changes or whatever, the public is aware and they research people that they are thinking of working with. They Google you, check out your website and judge you prior to meeting. We can assist with marketing, press releases, etc. for a very modest amount of business... and we do it all. We are the family owned boutique with a great blend of young and experienced, and we need and want your business. So, what do you have to lose? Pick up the phone and give us a call to arrange a 15 minute meeting, or simply click below to arrange an appointment with one of our marketing consultants. The clock is ticking and it’s time for you to do something. Your future business just might depend on what you decide to do. Until next time... good selling! |
Archives
April 2024
Categories |