Broad Brush

Q: It seems you are painting all of us insurance agents with a “broad brush”. I am just starting into the annuity business as a seasoned agent of 25 years. I also worked with Allstate Financial Service and had a series 6. I would never advise... anyone to put all of their assets in one place. If you are not licensed as an insurance agent you can’t sell them and if you are then you will realize there is great place for these products that meet the need of many clients. Your commission nor mine should ever be the first objective but the last. Keeping the client’s, goals, objectives, time horizons, and personal needs in view of any recommendations should be our guiding motive. Your article makes it look like all of us “life insurance agents” are a bunch of heartless monsters. I found it quite offensive. Did an insurance agent “steal your client”? I don’t want to hurt any senior and I am sure you don’t either. So what do you suggest that I do differently with the public as far as annuities go, fixed or EIA’s? I mean that honestly. I am 58 years of age and have been in the business for 25 years.

By the same token Jeff with the market as volatile as it is I find it criminal to have a retiree have most his or her wealth exposed in the market. I am sure you have a balanced approach to anything you propose to your clients. At the same time you want to make a living too. There is a definite place for EIA’s for clients who have time and want to have some growth but not all the risk. The key is that a client needs full disclosure of what an annuity is and what it is not. You can’t legislate ethics and much of this has to do with good ethics as well as financial planning skills. I have lost more money with “your kind” than I have ever lost to an insurance agent but that would not be fair to blame all CFP’s.

I hope you will be fairer to insurance brokers and agents in your future articles. I certainly have friends just like you that are doing a great job and I would not want to drive them out of the business or cast them as “evil doers” looking only to churn and twist one’s wealth. Unfortunately it does exist in all financial professions but the public needs to know there are good agents and financial planners out there ready to give them good honest and ethical service.

A: I appreciate your comments and, if you’ve read any of my other articles, you will find that I have as many complaints with the traditional advisor.

Still, I do not like EIA’s at all. Rarely have I seen them work out as projected and it’s the client who takes all the risk if things don’t work out.

Your posted comments on this and other questions are welcome.
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