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bc2051 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bc2051 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 2:51pm
Mo- sarcasm?

In Helado’s example, the person can at least pull from the Roth IRA when their car breaks down instead of collapsing the policy and all of their premiums paid. Can we all agree emergency fund before LI?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 3:09pm
Originally posted by bc2051 bc2051 wrote:

Mo- sarcasm?

In Helado’s example, the person can at least pull from the Roth IRA when their car breaks down instead of collapsing the policy and all of their premiums paid. Can we all agree emergency fund before LI?

YES!
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B24 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 3:10pm
Originally posted by helado helado wrote:

You know, I really can't fault DHK's $.02 on this one.  Although I suspect a "term policy with accelerated benefits rider" is probably not what he'd actually sell.  

But if you had a prospect that had $1,000 a year in free cash flow, let's be honest.  This person is never going to accumulate retirement savings that really mean anything.  They are going to have to work until 67 to get full SS and have Medicare, maybe even 70.  

I guess you could argue that over 40 years, $85/month in a Roth IRA invested aggressively could be a semi-meaningful amount of money.  But then again, we're assuming this client is in their early 20s to have 40 years.

The reality is, this person is going to have to work in other ways to better themselves (i.e. increase their income) or reduce their lifestyle drastically to be able to save an amount of money that would meaningfully impact their retirement.

In addition to that, there aren't many of us that are going to take this person as a client anyway, regardless of whether they buy a term policy or put $85/month into American Funds A-shares.  Best case scenario either way, they get someone that MIGHT take their call and sit down with them every couple of years to give them ideas on how to better their existing financial situation.  

It wouldn't be the worst thing in the world for them to have $250K as a death benefit in case they meet an untimely demise, assuming this person (or household) has someone(s) depending on their income.  

Probaby their best ROI on that $1,000 is to enroll in some type of certification program to get a better job, or start putting it towards online classes.  

Now back to what I initially said, (sorry DHK), in reality, DHK would probably only sell this solution if it's literally the only thing they could afford.  It would be a pivot to permanent insurance with a term rider with some cash accumulation if they had $2,500+ per year in free cash flow.  

And that would be a shitty recommendation.  

My point was not that life insurance is a bad thing for this person to have.

It was that selling $1000 premium life insurance policies to broke people might be the worst piece of career advice one could get.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 3:49pm
Originally posted by bc2051 bc2051 wrote:

Mo- sarcasm?

In Helado’s example, the person can at least pull from the Roth IRA when their car breaks down instead of collapsing the policy and all of their premiums paid. Can we all agree emergency fund before LI?


Sorry, forgot to change to italics.
I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 4:20pm
Look, all I'm saying is that if THIS is what he wants to do... 

Originally posted by wetucker2 wetucker2 wrote:

Hello everyone!  I'm a new licensed FA looking to gain insight and advice to build my practice.  I'm excited about this career transition to help people like me who felt they have not received the best advice in their lowest of times in life.

... then wealth management is NOT the direction that would be the most fulfilling for him.

Insurance is ONE such path - even if it's with Primerica.

He could also become a Consumer Credit Counselor or become a bankruptcy attorney.

Many different avenues out there.
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Moraen View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Moraen Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 6:01pm
Or an Accredited Financial Counselor. The Defense Department pays between $50 and $75 an hour to help out soldiers, sailors and airmen.

Go to AFCPE.org.
I come in peace. I didn’t bring artillery. But I’m pleading with you, with tears in my eyes: If you fuck with me, I’ll kill you all. - General James Mattis

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helado View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Oct/14/2019 at 7:24pm
Originally posted by B24 B24 wrote:

Originally posted by helado helado wrote:

You know, I really can't fault DHK's $.02 on this one.  Although I suspect a "term policy with accelerated benefits rider" is probably not what he'd actually sell.  

But if you had a prospect that had $1,000 a year in free cash flow, let's be honest.  This person is never going to accumulate retirement savings that really mean anything.  They are going to have to work until 67 to get full SS and have Medicare, maybe even 70.  

I guess you could argue that over 40 years, $85/month in a Roth IRA invested aggressively could be a semi-meaningful amount of money.  But then again, we're assuming this client is in their early 20s to have 40 years.

The reality is, this person is going to have to work in other ways to better themselves (i.e. increase their income) or reduce their lifestyle drastically to be able to save an amount of money that would meaningfully impact their retirement.

In addition to that, there aren't many of us that are going to take this person as a client anyway, regardless of whether they buy a term policy or put $85/month into American Funds A-shares.  Best case scenario either way, they get someone that MIGHT take their call and sit down with them every couple of years to give them ideas on how to better their existing financial situation.  

It wouldn't be the worst thing in the world for them to have $250K as a death benefit in case they meet an untimely demise, assuming this person (or household) has someone(s) depending on their income.  

Probaby their best ROI on that $1,000 is to enroll in some type of certification program to get a better job, or start putting it towards online classes.  

Now back to what I initially said, (sorry DHK), in reality, DHK would probably only sell this solution if it's literally the only thing they could afford.  It would be a pivot to permanent insurance with a term rider with some cash accumulation if they had $2,500+ per year in free cash flow.  

And that would be a shitty recommendation.  

My point was not that life insurance is a bad thing for this person to have.

It was that selling $1000 premium life insurance policies to broke people might be the worst piece of career advice one could get.
 

I know.
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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