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Add You - Annuities - Avoid More Financial Razor Blades
A question I am often asked by my clients is should I hire someone who can sell but lacks industry experience; or should I search for someone who has been around the industry and has good product knowledge.I advise them to hire a re who can sell, and teach them the specifics of the industry. Here is why.I recently delivered am appointment setting program at a company in a vertical I do a lot of work in. In the audience was a lady whom I trained at a competitor some six months ago. Before she came over to peak with I remembered her clearly. She was very outgoing, and I remember she spoke to me at length when we first met, talking to
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the
Credit cards have nowadays insinuated themselves into all corners of our lives, and it is rare for an adult these days to not carry at least one card. As well as being used in the traditional manner to buy goods or services in person, they are also now used online, over the telephone, for writing checks, and even for withdrawing money from cash machines. People use them in all sorts of ways - as a means of borrowing, as a convenient payment method, and even for earning money through cashback or reward schemes.Despite their ubiquity in modern life, credit cards have a fairly short history, with the first general purpose credit card being i
Why do so many Americans watch the Super Bowl every year, anyway? For the commercials, of course! And every year, companies try to wow us with their outrageous ads, or use the national spotlight to launch their newest product.
This year was no exception, as one famous consumer products company introduced a ground-breaking improvement: a razor with five blades. That’s right, not a razor with four blades, which is so old-fashioned, but one with five, yes, count them, five blades!
Razor blade companies aren’t the only ones trying to sell us on the latest and greatest must-have upgrades. Have you shopped for toothpaste lately? Talk about brand extension!
Why do products that work fine to start with need to be upgraded and improved? There is one reason: sales. If one company comes out with a new improved version, it means that all of its competitors have to also. Otherwise, they might lose sales to the improved version.
These improvements aren’t free. Take a quick look at the cost of a five-blade razor and you realize all these bells and whistles carry a hefty price tag, especially when compared to the ‘old-fashioned’ version.
The same ‘brand extension’ occurs in the financial industry as well. They’re always adding an ‘extra blade’ to their ‘razor’ or ‘micro-cleansing beads’ to their ‘toothpaste’. Annuities are a perfect example.
The first annuity in America was offered in 1759. The first variable annuity was offered by TIAA-CREF in 1952 for use in college retirement programs. The purpose of the variable annuity was to allow a teacher to grow their nest egg during their working years and then convert that growth into a steady income stream when they retired. In effect, they were creating their own pension.
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the c
The hardest part of getting a computer career started is just that - getting started! For many career changers, the first step in a rewarding career in IT is attending a tech school such as ECPI or ITT Tech, and then it's off to the job hunt.When it comes to the difficulties you can face getting that first job, I speak from experience. Today, I possess the world's most valuable computer certification and own my own computer training company, but the beginning of my career was very, very difficult. Just getting an interview when you're looking for your first computer job is tough, but I'm also living proof that it can be done and you
This year was no exception, as one famous consumer products company introduced a ground-breaking improvement: a razor with five blades. That’s right, not a razor with four blades, which is so old-fashioned, but one with five, yes, count them, five blades!
Razor blade companies aren’t the only ones trying to sell us on the latest and greatest must-have upgrades. Have you shopped for toothpaste lately? Talk about brand extension!
Why do products that work fine to start with need to be upgraded and improved? There is one reason: sales. If one company comes out with a new improved version, it means that all of its competitors have to also. Otherwise, they might lose sales to the improved version.
These improvements aren’t free. Take a quick look at the cost of a five-blade razor and you realize all these bells and whistles carry a hefty price tag, especially when compared to the ‘old-fashioned’ version.
The same ‘brand extension’ occurs in the financial industry as well. They’re always adding an ‘extra blade’ to their ‘razor’ or ‘micro-cleansing beads’ to their ‘toothpaste’. Annuities are a perfect example.
The first annuity in America was offered in 1759. The first variable annuity was offered by TIAA-CREF in 1952 for use in college retirement programs. The purpose of the variable annuity was to allow a teacher to grow their nest egg during their working years and then convert that growth into a steady income stream when they retired. In effect, they were creating their own pension.
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the
Over trading is one of the biggest causes why traders never make it in the financial markets. With a click of a button, a trader can place a trade anytime he wants. It takes tremendous discipline to hold yourself back from over trading. There are many reasons why one may choose to over trade.1. Traders without a planTraders without a plan are my favorite type of traders because they will always lose. Without a plan, how would one know when to take a trade and when not to? Having a trading plan is a necessity. I can not trade if I do not have a plan for the day. I feel lost without one.2. Revenge tradingMany new trader
Why do products that work fine to start with need to be upgraded and improved? There is one reason: sales. If one company comes out with a new improved version, it means that all of its competitors have to also. Otherwise, they might lose sales to the improved version.
These improvements aren’t free. Take a quick look at the cost of a five-blade razor and you realize all these bells and whistles carry a hefty price tag, especially when compared to the ‘old-fashioned’ version.
The same ‘brand extension’ occurs in the financial industry as well. They’re always adding an ‘extra blade’ to their ‘razor’ or ‘micro-cleansing beads’ to their ‘toothpaste’. Annuities are a perfect example.
The first annuity in America was offered in 1759. The first variable annuity was offered by TIAA-CREF in 1952 for use in college retirement programs. The purpose of the variable annuity was to allow a teacher to grow their nest egg during their working years and then convert that growth into a steady income stream when they retired. In effect, they were creating their own pension.
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the
Background checks can be used for a variety of purposes and are a good way to have confidence that someone with whom you are involved personally or professionally is disclosing all necessary information. Employers often use background checks to get verification of previous employment, driving records and to ensure there is no criminal activity. This is an important step in the hiring process especially in positions where employees may handle sensitive information or who may be working with the public or with children. Having the security that background checks were made will not only allow the employer to feel better about their hiring decisi
The same ‘brand extension’ occurs in the financial industry as well. They’re always adding an ‘extra blade’ to their ‘razor’ or ‘micro-cleansing beads’ to their ‘toothpaste’. Annuities are a perfect example.
The first annuity in America was offered in 1759. The first variable annuity was offered by TIAA-CREF in 1952 for use in college retirement programs. The purpose of the variable annuity was to allow a teacher to grow their nest egg during their working years and then convert that growth into a steady income stream when they retired. In effect, they were creating their own pension.
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the
The forex market is possibly the largest financial market in the world, and with widespread access to internet technology, this market has been thrown open to the smallest investors. These investors are attracted by the potential to make large amounts of money in the comfort of their own homes. But is it that simple to learn forex currency trading? The answer is yes. That being said, it is important to point out that not enough people give adequate time and thought towards gaining knowledge of the market when they try to learn forex currency trading.The result? A lot of people end up losing money or simply breaking even, though the potent
You would have a hard time recognizing that product today. A guaranteed minimum death benefit was introduced in 1980. The guarantee minimum income benefit in 1996, enhance earnings benefits in 2000, the guaranteed minimum withdrawal benefit and the guaranteed minimum account balance in 2002.
With each ‘improvement’ the costs have gone up as well. Whereas variable annuities used to be a low-cost way to create your own pension, now they are bloated, expensive all-things-to-all-people products offering every bell and whistle you can imagine.
The total cost associated with variable annuities can quickly climb to 3% or more with just the basic features—higher if you add all the ‘benefits’. The main purpose of a variable annuity is to provide greater returns then a fixed-annuity. All these costs make that much harder to achieve. Moreover, these costs essentially are transferring a large portion of the growth from your nest egg to the insurance company.
Worse, few of these benefits are ever used. The key selling point of a variable annuity is supposed to be a lifetime income stream, but less than 5% of variable contracts are ever annuitized.
If they are a long-term vehicle designed to save for retirement, why are so many being sold to people already retired? Why are 70 and 80-year olds being sold variable annuities?
I say ‘being sold’ because only 2% of people choose to buy an annuity on their own. The rest are sold by banks, brokers and agents. Could the fact that the commission is so high be a cause?
Call me old-fashioned. I still shave with a two-blade razor. It works well and saves me money. If you want the traditional benefits of a variable annuity, choose the two-blade kind. They are the low-cost, plain vanilla variable annuities sold by companies like Vanguard.
You already know what next year’s Super Bowl advertisement will be: a razor with six blades! And you know what your commission-based advisor will be pushing soon: an investment with another costly feature! Don’t fall for it! Ignore the hype. Find low-cost solutions to your financial goals and keep control of your money
Have a financial question? Send me an email and I’ll personally respond, free of charge. Go to www.guardingyo
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