WGN Hosts Finance For Teachers

It's always nice to see a fiduciary advisor on television giving advice to teachers. Dave Grant of Finance for Teachers (and the F4T Network) was invited on the local WGN news show to provide some tips for teachers.

More Ridiculous Annuity Ads - 11% Commissions!

It amazes me what makes its way into my inbox these days.

This time I received an e-mail about an annuity that pays an 11% commission, wow!

Think about that, for every $100,000 you place into this annuity, you (the agent) make $11,000 - that is huge.

Notice how the details to the left are almost non-existent though? Most of the "features" are just throwaway gimmicks, what is missing is what the term, rate and surrender charges are...you know, the important stuff.

How much could this annuity actually pay in interest when the company has to pay 11% out to an agent and then credits the client with a 5% premium bonus, that's fully 16% of the amount deposited. You can be sure the client isn't making much interest.

How these companies can get away selling such junk is beyond me. This is why we need a Conflict of Interest Rule.

Scott Dauenhauer, CFP, MPAS, AIF

More Annuity Incentives - This Need To Stop

I've posted several e-mails that I've received from Insurance Marketing Organizations (IMO), they really should be more careful who they send this stuff out to. The latest advertises a 7% commission with several ways of increasing that commission by selling certain amounts of a particular annuity through a particular IMO.

If you are wondering what's behind the annuity recommendation your agent is trying to sell you...this is a clue. #IncentivesMatter

Scott Dauenhauer, CFP, MPAS, AIF

Secrets of Insurance Sales: Sell Our Crap, We'll Pay You Back

If you don't quite understand what's behind the Department of Labor's current push to decrease conflicts of interests within the financial services industry, perhaps this e-mail I just received will give you an idea.

Basically, this company (an IMO) will reimburse insurance agents for their marketing expenses...but only if they sell certain products that pay commissions. As always, no mention of the client's best interest.

What's behind your broker/agent's recommendations? #IncentivesMatter

Scott Dauenhauer, CFP, MPAS, AIF