Financial Planner

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PostPosted: Sun May 10, 2009 11:06 am   Post subject: Financial Planner  

Insurance is the cornerstone of any financial plan.



Without insurance your financial plan isn't sound, its built on quick sand.



You have to transfer your risk of loss to professional risk management firms.



Nobody likes buying insurance including insurance agents.



Insurance companies are multi-billion dollar conglomerates.



By the way, would you do business with a poor, struggling, just-getting-by insurance company?



Your insurance agent is your Primary Financial Planner.



Anyone who tells you any different is a kool-aid drinker who can't separate Sales Talk from Financial Facts.


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PostPosted: Sun May 10, 2009 11:54 am   Post subject:   

i wonder what was your objective of starting this thread in the first place... Rolling Eyes


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PostPosted: Sun May 10, 2009 3:26 pm   Post subject:   

Quote:
i wonder what was your objective of starting this thread in the first place








I think gary want to rephrase the fact that 'financial planning has to be done in consideration with life insurance.



and financial planners who do not have any knowledge of insurance ( or dumb in insurance) will not be a right person for the financial planning.



Annonymus!! do you get the clue?
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PostPosted: Sun May 10, 2009 4:11 pm   Post subject:   

I think Finantial planning and Insurance are two different things.

If you mixture of these two it will create confusion

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PostPosted: Sun May 10, 2009 6:55 pm   Post subject:   

Quote:
I think Finantial planning and Insurance are two different things.

If you mixture of these two it will create confusion




What??? They are inextricably entwined, and one does not go without the other. Where did that comment come from? Life insurance is one of the absolute bases OF FINANCIAL PLANNING!! I can think of very few situations in which life insurance isn't necessary as part of an overall financial planning strategy. As Gary said- your insurance agent is your cornerstone of that planning, and if you deal with an agent that has no clue, they you deserve what you get.



"You can't fix stupid."



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PostPosted: Mon May 11, 2009 2:30 am   Post subject:   

I had a financial planner tell me once that he had to have his insurance license just so he could offer annuities. REALLY?? So you don't advise your clients of their need for insurance?



Some financial planners are very narrow minded and seem to suffer from tunnel vision. The fact of the matter is that you spend all of your life working to provide for your family, who wants to lose all that because of a lack of proper insurance coverage?



I would never personally deal with a CFP that did not also have insurance designations and a strong personal belief that you CANNOT plan for the financial future without insurance!

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PostPosted: Mon May 11, 2009 2:07 pm   Post subject:   

The insurance agent doesn't have to be one's primary financial planner, but there's no question that a financial plan that doesn't have the insurance component is built on quick sand.



This leads to the problem that a financial planner who is not an insurance agent is very likely to not have the necessary expertise. One can't get the expertise without dealing with this stuff on a daily basis.



In short, Gary is basically correct because one needs a good insurance agent or one needs a financial planner who is going to say, "Go talk to an insurance agent to take care of these things where I'm lacking knowledge."

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PostPosted: Mon May 11, 2009 4:36 pm   Post subject:   

Quote:
"You can't fix stupid."




Teach, I couldn't agree more. The problem lies with a lot of the "stupidity" coming from the so-called "financial planners". I have one in mind who is well respected, has his own TV show, radio show and from time to time appears on CNN. This guy is a "term life insurance advocate" and ALWAYS advises EVERYONE to buy term insurance, but I think there is a hidden agenda here. You see, on his web sites he promotes one particular term insurance company. Wonder why?



Insurance agents often get the blame for being to aggressive or "pushy", if you will, but what most people don't understand is that an agent can be sued for not providing the right amounts of insurance in certain situations.



In other words, if an agent completes an insurance review and discovers the need for $500,000 in life insurance and leaves the client with $200,000 in life insurance, that agent can be sued by the surviving beneficiary.



The insurance agent is truly the expert in the financial planning process.


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PostPosted: Tue May 12, 2009 11:21 am   Post subject:   

Quote:
i wonder what was your objective of starting this thread in the first place...


InsTeacher hit the nail on the head with this his comment:

[Financial Planning]

Quote:
They are inextricably entwined, and one does not go without the other. Where did that comment come from? Life insurance is one of the absolute bases OF FINANCIAL PLANNING!!




The purpose of this thread is because there are STOCK BROKER type so-called financial advisors out there who wouldn't know risk management if they had a mouth full of it.



They don't call themselves STOCK BROKERS anymore. They call themselves "Registered Representatives" and THEY WORK FOR Broker-Dealers.



This forum is really getting active and more fun...



The General Public needs to know who's who in the Financial Services Industry. There are only three (3) basic types of financial advisors:



#1) Bank Employee Financial Advisor.



#2) Stock Broker Financial Advisor.



#3) Insurance Agent Financial Advisor.


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PostPosted: Fri May 15, 2009 5:16 pm   Post subject:   

In many cases, there isn't much of a difference between #'s 1,2, and 3. The biggest difference is that anyone who needs to put their insurance business through the grid, tends to ignore insurance issues because their compensation is too small.



Ex. Gary sells a DI policy. The premium is $500. The product pays 50% commission and Gary gets a 50% override of some sort. He makes $375. Jim, the stock broker, sells the same policy. The commission is still 50%, or $250. It goes through his grid and he gets 40% or $100. The insurance salesman makes 300-400% more on every sale.



Gary, you need to add #4 to your list. RIA financial advisors. Most of #1,2,and 3 are registered reps. Most with #4 have gotten rid of the broker/dealer.

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PostPosted: Wed May 20, 2009 12:59 am   Post subject:   

Is there a way a consumer can buy directly from the company without going through an agent or broker? Surely this would cut down on the middle-man costs...

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PostPosted: Wed May 20, 2009 1:24 am   Post subject:   

Quote:
Is there a way a consumer can buy directly from the company without going through an agent or broker? Surely this would cut down on the middle-man costs...




There are some life insurance companies that sell directly to consumers and don't pay commissions. You would think that these products would be cheaper. In fact, they are actually not competitively priced.



You have to keep in mind that commissions are nothing more than a distribution cost. If a company isn't paying commissions, how are they going to get someone to sell their policies? They have to hire them and pay them a salary. Hiring people and paying salaries is more expensive than paying commissions, thus companies that sell direct can't financially compete.



For a company that does pay commissions, they can't legally charge less to someone who buys direct. Even if they could, they probably wouldn't do so. If they undercut their own agents and brokers, the agents would quit and the brokers would place business elsewhere.
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