Many people say that we are entering the “Golden Age of Annuities”.  I agree 100%. Timing could not be better for Americans to purchase annuities... all types. There is a lot of laddering going on.  We are designing combo plans that have both SPIA’s and FIA’s. We are also seeing a huge uptick in the amount of MYGA sales, as CD buyers are looking for anything that can exceed the paltry rates offered on CD’s in the bank.

But, I am sorry to say, it will not be the “Golden Age” for many advisors and agents. Sure, they have access to the finest products in history, great compensation and top notch service from most IMO’s. So, where is the disconnect?  It is simple. The majority of agents don’t have enough qualified prospects to see and they don’t have a plan for obtaining them in the future.  Talk about income inequality. So, is there an answer?  Of course there is- and it is simple to provide the answer, but it entails some commitment on the part of the agent... both sweat and financial investment. You see, until prospecting becomes a process it will always be a problem.  Let’s continue.
 
So, you say...”Ray, we know that we are stuck and we don’t have enough money for internet or radio and TV leads. So, what else is available?”  We have a Micro-Marketing Program that is reasonably priced, has a history of success and is easy to implement. We even provide the back office so you can do what you do best... sell.  We would be happy to speak with you about this, but the purpose of this commentary is to implore you to take action.

The train has left the station, and you need to have a process that eventually gets you to a point where 50% of your prospects are referrals.  Look, I don’t need to tell you that you have a problem (if you are one of the agents I am addressing). There are answers, and every IMO has a financial interest in seeing you succeed. If you don’t make money... we don’t make money.
 
So, you might say that it’s easy for me to write about this because I’m not out pounding the pavement every day.  Fair enough… but I did . I am a life member of MDRT and started qualifying while I was in college. I have developed marketing programs in Milan, Stockholm, Muncie, Indiana and South Carolina... and all parts in between. How did we do it?  With a finely targeted Micro-Marketing Program that had to be worked every day. Yes, every day prospecting is the mission you have to seize.  

As I said, there are organizations that can help you as we can. As long as you have the attitude and aptitude you can fill your prospecting funnel. If you don’t, unfortunately prospecting will continue to be a problem. Make it a process and take advantage of the “Golden Age”.
 
Until Next Time ... Good Selling!

This has been quite a year. Volatility is everywhere. The recent decision to leave Fed rates where they are didn’t do anything to propel the equity markets. On the contrary, the markets dipped. I am not an economist but, I believe that the overriding reason “not” to raise rates is due to uncertainty. We could talk all day long about the low interest rate scenario that we have been living under for almost 10 years. Granted, we have been able to get low cost car loans, low cost mortgages and business have been able to borrow to re-invest in their business at low rates. But, there are also people suffering due to the low interest rate environment. They are the “savers””. They are retirees living on fixed income. It’s tough to survive in retirement on a 1% return.  So, people are not sure where they can get a reasonable rate of return and reduce downside risk. Think that we might have an answer? I sure do.
 
Back in the 90’s I was fortunate to be involved in purchasing some life insurance companies and to function as their president. There was a brand new product just being launched in America. This little gem was called an “index annuity”,  built on a standard deferred annuity chassis. It has a small guarantee on the principal but had the interest credits linked to the S&P 500. WOW…did this ever transform the annuity business. So, we developed and launched a product and started selling hundreds of millions per year. Think of it, a product that touts…when the market increases, you share in the winnings.  When the markets goes down…you won’t lose a penny. Plus, all principal and previous gains are locked in for the client.  Wouldn’t it be nice to have something like that now?  Well we do...and it’s even better.
 
The new FIA’s also provide an income that your client can’t outlive. And, in the majority of cases, they can withdraw more than the “standard 4% rule” of withdrawals. So, as you have heard, a reasonable rate of return, principal is guaranteed along with previous gains and now an income that you can’t out live. Ladies and  gentlemen, we have the product that America wants. We just need to find out if they have “the appropriate amount of money at risk”  If not, maybe it’s time to have them get introduced to a Safe Money Product. 

Now, I have a suggestion. There is no need to “over-promise” what we have is tremendous. Personally, I don’t like to offer an index that is based on hypothetical back testing. Why do it when there are so many great iindices, some new to FIAS, that have 10 year histories. (If you don’t know which ones have true historicals, give us a call)
 
In summary, maybe you need to be branded as “the Safe Advisor”. Check out www.safemoneyplaces.com and consider membership in the Safe Money Places Agent Network. And, after you have your next client appointment, if they reject the Safe Money concept, simply give them your parting gift, a nice roll of Tums. Until next time…good selling.

Some agents always seem to be successful ... while some other agents/advisors seem to have a rough time keeping their heads above water. This happens in good times, bad times and with any product line or market segment. 

• Are they super human? 
• Were they born with luck or unbelievable sales skills? 
• Do they know something that you don’t know? 

Well, they may and probably do, have some special skills and talents but that’s not the secret. What is the secret? The main difference is a plan, not just a marketing plan, but a business plan as well.  

Successful Advisors are  running a business and a financial services practice. Successful advisors are NOT product salesmen. Product salesmen are successful when things are hot. They are able to “clip” low hanging fruit. They are not professional business planners. 

The pros have a plan and know where they are going and where they have been. That may be the most important part of the planning process. History is very important when setting your sails and making your plans for your successful destination. But yesterday is over and it’s time to move forward. The old saying, “Reflect on the past sufficiently but only enough to enhance the future,” could never be more true.

Successful advisors embrace turmoil. This is when great advances are made. Anyone can make good money in easy times. Turbulent times bring out the best in the top producers. They do two very important things. They listen and learn. They listen to the public’s needs and concerns and seek out ways to satisfy these challenges. They read, attend classes and develop new strategies. They become counselors as opposed to sales people. 

There is another distinctive difference between average and successful advisors ... successful advisors don’t always try to hit the ball out of the park. Home runs are not at the top of their list. Successful advisors will work at getting a lot of singles and doubles. They are more interested in scoring runs and winning the game and constantly hone their skills. They are very concerned with fundamentals. That’s why they are pros. So, over the long run, these successful advisors outperform their competition.

In closing, most of the successful advisors I’ve known in my thirty (30) plus years in this business have never made the front page of a trade magazine. Most never made claims as to how they can have you triple your business in one year. Most advisors spoke to their constituents about staying in the game, building a business that would stand the test of time, and most importantly, doing it with credibility and integrity. 

So, after this diatribe, what am I suggesting to be the answer to success? Hard work is of course a primary ingredient. People skills are extremely important. But, at the foundation of success is the plan and the people that help you develop and implement your program. In short, “plan your work and work your plan.” That’s what we are doing right now. 

Until Next Time ... Good Selling!
Raymond J. Ohlson, CLU, CRC
President and CEO of The Ohlson Group, Inc

I’m speaking of Federal Income Tax. Let me ask you a question. Given your choice on money you have saved or invested, what would be your favorite tax paying scenario? Pay taxes now, pay later, or don’t pay at all? I know the answer is obvious. I’m sure you would rather forgo the payment of Federal Income Tax. I feel the same way and I am sure that your clients do as well. So, why don’t we help them out? Why don’t we give them what they want? You know we can help. Let me explain.

Many seniors put money in annuities for accumulation purposes. They don’t need the money for income. But, they are concerned that their “surviving spouse” may need more after their passing. They don’t know that there is an answer. It’s Single Premium Life. 

Hold on now, before you quit reading, let me make my case. You have clients with “Declared Rate” annuities that are at a 3% Guaranteed Rate. Why not surrender a portion — or all in many cases, of the annuities and put the money in a single premium life policy? You can get the full underwriting version or simplified issue. Yes, there will be taxes on their gain. But who cares? Let’s look at the alternative.

For example, one of our agents had a 65 year old female had approximately $100,000 in an annuity. Her cost basis was approximately $89,000. She wanted to leave her money in this policy to her grandkids. So, policy was liquidated, taxes paid on $11,000 and we turned her $100,000 into $181,000. 

This is a simplified issue policy … no exams. Oh, by the way, it would also pay $3,600 per month in a nursing home and $1,800 for home health care. If this was a male that wanted to leave money to a surviving spouse, the death benefit would be approximately $150,000. 

Here are the questions — how long would it take the lady to have $100,000 grow to $180,000 at 3%, 4%, or 5%? Now factor in the taxes. This market is exploding! 

We have the sales and marketing pieces to assist you. Help your clients by increasing their estates with a death benefit that is TAX FREE. It’s the right thing to do.

Until Next Time … Good Selling!

Ray Ohlson