new rep seeking advice
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Topic: new rep seeking advice
Posted By: rep007
Subject: new rep seeking advice
Date Posted: Feb/13/2011 at 12:36pm
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I am a new series 7 rep and had the opportunity purchase a block of business with some income flowing. I purchased the block (with around 5.5 million aum) from a retiring rep. The old rep indicated that it made an average of 50k per year. I think that it probably will bring in 40 to 45 in its current condition. There are around 200 clients in the block.... with really no large accounts. I’ve been systematically calling the existing clients and I am uncovering some business. The bottom line is that I need to start building a business now! I’m not 100% sure on the direction that I’d like to go with the business; however, I do have a target market that I am pursuing. The target client earns over 120k per year, works contract work with no 401k offered, and I have a large network of these types of clients that I know personally. I also may target the local school system state employees. I have a few contacts in the system and recently discovered that there is no longer a 403b program for teachers in this area. I really need to focus my time on productive things and would appreciate any advice for a new rep in this situation. FYI: I am independent
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Replies:
Posted By: RIArules
Date Posted: Feb/13/2011 at 2:44pm
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Welcome rep007! You should find some interesting stuff to chew on here. Feel free to ask more specific questions on the main board. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Guests
Date Posted: Feb/13/2011 at 2:53pm
| rep - what firm are you with? |
Posted By: rep007
Date Posted: Feb/13/2011 at 2:59pm
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My BD is a small firm and I won't mention the name on here. They are located in another state and I've never even personally met any of them. lol
It makes for quite the hurdle due to my learning curve but I'm up for the challenge and have some other forms of income to help me make it through the first "tough years".
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Posted By: Iamlegend
Date Posted: Feb/13/2011 at 3:07pm
| Since the school system doesn't have a 403b program, you could see if you get get a payroll slot for Roth IRA's or traditional. I have a friend who has been successful with this approach in a school system and county gov's. |
Posted By: rep007
Date Posted: Feb/13/2011 at 3:17pm
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One on my friends/contacts on the school board indicated that they will no longer do payroll deductions for retirement plans. I may be able to get the approval of the school board to go to the schools and maybe to have faculty meeting/seminars. Any thoughts on an approach when they will not allow payroll deductions? I'm thinking like you are regarding pushing roth IRAs (or traditional for those who want the tax deduction). Should I just try to market them as "individual clients" and attempt to set up monthly bank drafts?
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Posted By: RIArules
Date Posted: Feb/13/2011 at 3:26pm
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ACH set up for three days after payroll. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Iamlegend
Date Posted: Feb/13/2011 at 3:28pm
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RIArules wrote:Posted By: Guests
Date Posted: Feb/13/2011 at 6:01pm
| Wow. How does ANY employer get away with no retirement plan these days? ESPECIALLY a school or government entity? |
Posted By: RIArules
Date Posted: Feb/13/2011 at 6:27pm
All the ones I know are supplemental to the state pension plan. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: rep007
Date Posted: Feb/13/2011 at 7:32pm
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Yes, They do have a pension where money is paid into. The pension then pays out based on years of service. They did have a 403b as well but that has changed. My angle is to supplement the pension plan.
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Posted By: Guests
Date Posted: Feb/13/2011 at 7:33pm
| Obviously. Even the local municipalities around me have 457 plans (and some of those only have a handful of employees). |
Posted By: knuk
Date Posted: Feb/14/2011 at 11:40am
Strategy: Call them. Not sure why you'd need to wait to think out a strategy. This game is about contacts.
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Posted By: blackcat
Date Posted: Feb/14/2011 at 8:09pm
| Doesnt sound right. If there a public school system I'm sure they have 457 or 403b option. These are what supplement there pension. How does a school system not any supplement to there Pension? |
Posted By: Iamlegend
Date Posted: Feb/14/2011 at 8:21pm
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Because of the new fiduciary standards some school systems severely reduced their offerings and some eliminated them altogether since they don't want to risk. |
Posted By: blackcat
Date Posted: Feb/14/2011 at 8:27pm
| I understand there were changes and reducton of offerings. Most School systems passsed on the risk to Third party admisistrators. Dont know of any school systems in my area that doesnt offer any options for there employees. Just sounds crazy. |
Posted By: RIArules
Date Posted: Feb/14/2011 at 8:49pm
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To me, the public pension is more than generous. They are teachers....at some point you have to assume they aren't total dumb asses if they want a better retirement. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Iamlegend
Date Posted: Feb/14/2011 at 8:54pm
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Posted By: Sportsfreak
Date Posted: Feb/14/2011 at 9:40pm
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My wife is a public school teacher, and she is an extremely intelligent woman. In fact one of the smartest women I have ever met. And I lover her dearly. But trust me, when it comes to money, investing and retirement planning - she is a dumbass. And so are every one of her teacher friends.
------------- If you eat an entire cake without cutting it, then technically, you only had one piece |
Posted By: Wet_Blanket
Date Posted: Feb/14/2011 at 9:54pm
| That goes for all of my teacher relatives. |
Posted By: RIArules
Date Posted: Feb/14/2011 at 10:16pm
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My ex-wife would have choked to death on shoes if it weren't for my smart ass comments....and she is a principal. How great the education system has become. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Guests
Date Posted: Feb/14/2011 at 11:35pm
Most 403(b) plans don't require the employer or plan administrator to be a fiduciary. They don't operate like 401(k) plans (some do, but most do not).
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Posted By: RIArules
Date Posted: Feb/14/2011 at 11:46pm
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Last time I heard that was going to change. But trying to nail down the qualified plan market right now is like herding cats. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Guests
Date Posted: Feb/14/2011 at 11:49pm
| ERISA 403(b)'s are what you're thinking of I believe...and they aren't very prevelant in the K-12 marketplace. |
Posted By: RIArules
Date Posted: Feb/14/2011 at 11:58pm
I honestly think they should be, given the craptastic choices I have seen at the local ISDs. ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Guests
Date Posted: Feb/15/2011 at 12:00am
| Possibly so. It's odd how different the 403(b) market is from the 401(k) market. |
Posted By: blackcat
Date Posted: Feb/15/2011 at 12:01am
| K-12 and JC colleges Mainly non-ERISA like ICE said. Never seen a district that hasnt offerd either 403b or 457 like REP007 mentioned, sounds hard to believe. Whaat about you ICE, ever come across a district that didnt offer these? |
Posted By: Guests
Date Posted: Feb/15/2011 at 12:07am
| Never. In fact, probably 1/3 of the districts in my area have both a 403(b) and a 457(b). They all have at least a 403(b). |
Posted By: Guests
Date Posted: Feb/15/2011 at 7:31am
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My wife is absolutely the most brilliant person I've ever met, but explaining finances to her is very difficult. She gets it, but at the same time doesn't get it. I had a client in here on Friday who is a teacher. The poor thing is 60 years old, and has a hard time with the concept of compound interest. |
Posted By: Ron 14
Date Posted: Feb/15/2011 at 9:12am
In my limited teacher experience I have also found them to be investment morons. My brother-in-law is 26 years old and thinks the stock market is gambling and refuses to even acknowledge inflation exists. 
The best part of that is my sister, who is a Corporate Banking Executive at Chase, tells him he is an idiot. |
Posted By: RIArules
Date Posted: Feb/15/2011 at 10:15am
That should make for an interesting Thanksgiving.  ------------- “We are all Antifa” - Hacksaw 9/12/2025 |
Posted By: Ron 14
Date Posted: Feb/15/2011 at 10:27am
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That is exactly when it happened. She brought it up just to make him look like an ass in front of my other bro-in-law (CPA,CFA at BofA) and myself.
The not so funny part of it is in reality I was by far the dumbest person in the room. 
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