More Bottom Life Profits by Hiring a Specialist to Evaluate Your Annuity

While watching golf on TV the other day I was inspired by the name on the hat that Phil Michelson wore. I Googled them and found out they were business consultants. Their expertise was consulting with medium to large companies to evaluate their business practices and to locate bottom line methods to increase profit. I thought how in the world did I miss this for my little annuity business.

I hired a business consultant to look at all aspects of my business and help me make better business decisions so I can be just like GM, Boeing and United Airlines. The overall cost was a little more than $5,000 and I spent about 2 days answering questions and filling out questionnaires. All the information was entered into their computer and it must have cranked on it for at least a day. The report was mind-blowing; things I had never even considered were introduced to me.
They had evaluated all my expenses and the bottom line were these ideas.

? Send E cards and save on postage.
? Buy all my stationary in bulk based on a 12 month need.
? Use only ATMs that have no fees.
? Cancel magazine subscriptions and use the internet for my news.
? Cancel my whole life insurance policy and replace it with term.
? Make my 2 employees coshare their health insurance cost.
? Cut back on Starbucks and make coffee at the office, quit going out to the coffee shop.
? Buy copy paper in bulk one pallet at a time and make the stationary company store it for me until I need it

I read all 99 of their suggestions and thought... not no, but Hell No!

Who wants to live like that? Who wants to be that extreme. What should I do if I want to have a better bottom line? It was very easy, see only 10 more people in a year and this will result in 1 ? more annuity sales. Based on my average care size of $77,000 this would provide an additional $10,000 to my bottom line. Only 10 more new seens a year! How simple is that?

Here is my plan for expense reduction?.DON?T!!! Life is way to short for this type of bottom line drive.

When your whole focus is on reduction and not sales you become very negative and not proactive. We are annuity salesmen and we need to be active and proactive.

One terrific tax benefit I did receive from my consultant, I got to write off his consulting fee. My attitude is that it is much simpler to sell than to reduce.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

#BREAK# #TITLE#Attention Annuity Salespersons - Control Your Own Destiny#/TITLE#

Sales organizations love to sign you up. Contracting you is one of their greatest joys and why shouldn?t it be. You do the work, you invest your money and they get the cream of the overrides. What do they invest in you?Oh yes I know?.Service! In my book, service is a synonym for greed.

Answer these questions:

? How many times have you had an annuity marketing company attempt to recruit you?

? How many telephone calls and emails do you get each week from annuity marketers?

? How many times has a marketing company offered you free leads as an incentive to contract?

? How many times has a marketing company offered you their ?secret? CD to learn what how the big boys do it?

Insider Secret Number 1:

You control your contracts Here is my very first rule and one I hope you will adopt. Get a pre-release letter! When you contract with a marketing company they forget to tell you about being released in the future!

? What if your situation changes?

? What if you found a marketing system better suited to your personal situation?

? What if you wanted a change?

? What if we did not satisfy your marketing needs?

? How do you get released?

Do not become a slave to your FMO, demand the pre-release, they all will do it!

Insider Secret Number 2:

Most annuity sales marketing organizations do not know how to sell annuities. It is the old saying.. Those that can?t sell, TEACH!

Learn how to sell annuities and how actually market yourself and your business from ?those that do.? This is an easy topic to check out, just ask your FMO how they would make a sale in a specific situation and their answer is always based on product. Try it and see for yourself. If you are committed to working with an FMO, also hire yourself a coach, one who has sold and who can sell. This is the very easiest direction.

Insider Secret Number 3:

Insurance company products are designed for only one reason, to maximize profit to the insurance company.

The newest, latest and greatest annuity is just a new wrapper around the same old product. The insurance company buys bonds to guarantee the performance and no matter how you look at it, the yield and the annuities are all in the same arena. Just more sizzle. If you chase the new products you will be just that ?a chaser.?

Chasers never build a practice, never have anything worthwhile to sell to their clients other than the newest wrapper on the same product.

Be different! Sell annuities based on the benefits they can provide to the owner. The real reason to buy an annuity is not based on yield but on benefits.

Learn these secrets and do as much for yourself as possible. Rely on the FMO as little as possible.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com

Licensed Annuity Agent Reveals Secret Agenda

Large financial service organizations tilt the playing field against consumers. Metlife and, more recently, AXA Advisors are in the news for possibly offering incentives to representatives to recommend house products. It has been reported that some companies require the sales of proprietary products in order for agents to qualify for health insurance and other employee benefits.

Are consumers aware of this secret agenda when they meet with an agent? I am hesitant to use the term ?advisor? because that would insinuate the salesperson has the client?s best interest at heart. I am embarrassed to admit that I was offered a position with one of the companies mentioned in this article and was shown an impressive array of financial products available. It was then explained to me that house-brand life products and annuities paid much higher commissions than the ?outside? products and house-brand vehicles would help me qualify for incentive trips much faster.

I receive a monthly financial industry magazine that devotes much of their pages to advertisements from annuity companies pitching their wares. Each ad focuses on their high agent commission payout. One company will send my wife and I to Switzerland if I sell $2 million of their annuities. One ad is from a life insurance company offering a whopping 107% first year commission on the sales of their whole life policy! Another company?s full-page ad touts an average $17,000 commission per annuity and an annuity-selling coach explains that he is willing to teach me the secrets that helped him earn an ?incredible $381,522 in annuity commissions in only 6 months!?

One annuity company offers an a 7% commission on one annuity and an 11% commission on another annuity product. Here are some questions consumers should be asking.

Why would the company be willing to pay me 58% more compensation to sell one product over another? Answer: The higher-commission product is in the company?s best interest, not the client?s.

If an agent sells you a product paying 11% commission, will he advise you that he could have sold a product that paid him much less but he chose not to? Answer: I don?t think so.

Who is really paying the extra 58% in salesperson compensation? Answer: You, the client.

As a financial consumer, do I deserve to know any factor that is influencing the recommendations of my salesperson? Answer: A definitive YES.

Did the annuity salesperson hold himself out as a trusted financial advisor? Probably.

The problem with the real-life annuity example shown above is that the client has no way of knowing how much commission was earned by the agent. The 11% commission product will pay a much lower interest rate to the investor and/or have a much longer surrender period, tying the client?s money up for years. Fixed annuities and equity index annuities need complete commission transparency. Annuity companies know that higher commissions influence the sales practices of insurance agents and they also know annuity clients have no idea of the high price they are paying for a false sense of peace of mind.

I brought these issues up at a recent industry association luncheon. At my table, I had an insurance agent on my left side and an attorney on my right. To quote the agent, ?caveat emptor? or buyer beware. The solution for consumers, don?t be a buyer! See a fee-only advisor who is not tantalized by trips to Switzerland and high commission insurance products with no commission transparency. Also, consumers should demand legislation that forces all annuity commissions to be equal and completely disclosed to the client. The insurance and annuity industry should be embarrassed and any bad reputation is probably well deserved. The good news is that quality no-load annuities are available but don?t count on your average annuity salesperson to tell you about them.

Mark Diehl is a Certified Financial Planner, Chartered Financial Consultant, and author of The Wealth Management Manual available at amazon.com and barnesandnoble.com.

You can learn more about Mark at http://www.markdiehl.info or call 800-304-1232.

Why You Should Choose a Structured Settlement Annuity Payment

If you are the recipient of a structured settlement order, then you know that there are several options open for you when it comes to receiving compensation. One route that may be the best for you is to go with the structured settlement annuity payment. Here's a few reasons why this may be the most beneficial course of action for you.

First of all, if you are receiving money from a fixed annuity that is the result of some sort of legal action, be it a settlement arrived at by arbitration or litigation, the payments will be tax free in just about all instances. In effect, you will have a regular source of income that is all yours and does not have to be accounted for in your calculations of how much state and federal income tax you owe. This can greatly simplify doing your taxes for each calendar year.

Second, a structured settlement annuity payment provides you with a consistent and reliable source of income. No matter what other issues you may have in your life, you can depend on the payments to show up like clockwork. This can be a great situation for someone who has always wanted to try his or her hand at starting a business, but never could because of the need to provide income for the family. Having that regular payment coming in helps to insulate you from changes in the job market, and all sorts of unexpected situations.

The fact is that a structured settlement annuity payment is a cut and dried manner of receiving the money that is owed to you. You can depend on the money coming in at regular intervals until the settlement amount has been disbursed, so you can use it to support yourself while you build other sources of income or you can choose to invest it as you receive the payments. And through it all, the money is tax-free. For many people, this is the ideal situation.

Mayoor Patel is the writer for the website http://www.structured-settlements.wares-are.us/. Please visit for information on all things concerned with Structured Settlement Annuity

History Provides Tons of Annuity Sales Leads

Annuities have been with us for a very long time. Actually they date to the revolutionary times when Benjamin Franklin used annuities to help the Cities of Philadelphia and Boston provide funds for their citizenry. The last of these annuities lasted until 1991 when the City of Boston finally cashed it in.

Benjamin Franklin did not invent annuities although he was a great supporter of their benefits. Actually one of the first users of annuities was the Presbyterian Church. The Presbyterian Church used annuities to provide for old age ministers and their families way back in 1720. They expanded their use for widows and orphans and became a backbone of financial security for people of that time.

You might say that annuities are as old as our country and are a major part of the economic growth of America. It is true!

It was not until the tax Reform Act of 1913 that annuities were actually included in our tax code. All the years prior to then annuities were just part of the growing up of America. In 1913 tax rules and regulations of annuities were adopted. It was decided that annuities were so important to the continued growth of the American Economy that tax advantages were granted and are in place to this day.

Babe Ruth used annuities to avoid the risk of the stock market and thus was not hurt by the stock market crash of 1929. The Babe used annuities to provide a lifetime income for his wife and also for himself prior to his death.

I use this history to help my prospects feel comfortable about their decision to buy an annuity. I always say this..

?Annuities are the most boring products in the universe, safe secure and boring.? Their answer is always, that is what I want? boring. They do want boring because there is no risk involved with annuities; they are safe, secure and insured.

How are they insured and who actually guarantees them? I can?t think of a more regulated industry than the insurance industry, maybe atomic energy or some weird thing like that. As far as our industry is concerned, it is heavily regulated. If you do business as an insurance company in any state the safety of the insurance company?s products are guaranteed by three levels.

? The safety and solvency of the insurance company and it is monitored by the insurance commissioner?s department. Solvency is a must to continue business and it is the responsibility of each state to monitor the insurance company

? Every insurance company in each state guarantees each others solvency. Sort of a weaving of joint assets.

? The state guarantee fund in each state guarantees each annuity and life insurance policy. This fund is monitored and managed by the department of insurance. Many states have different levels of guarantees so it is smart to know what your state does guarantee.

I love to tell my annuity sales leads all about annuities and their long and splendid history so enter twinned with the history of America. Some points to remember:

? Annuities were not affected by the stock market crash of 1929 or any other year.

? Each annuity is guaranteed never to lose money.

? In modern history (1913) no one has ever lost a penny in an annuity because of insurance company insolvency

? Franklin, Ruth?..annuities are boring, just the way we like them

Sell our legacy and share the wonderful story of annuities with your clients.

Bill Broich is a 30 year annuity salesman who helps agents ramp up their annuity sales leads efforts. Visit his website to learn more. Annuity.com

Rescuing Your Underperforming Annuity Account

It was only a few years ago that interest rates plunged to historic lows. Conservative investors who needed guaranteed income and preservation of principal were in a bind. In many cases, returns at the bank were below two percent and fixed annuity accounts yielded only marginally better. Many of these cautious investors purchased fixed annuities rather than bank instruments in order to capture higher returns.

How times have changed. The United States economy improved significantly. Inflation pressure grew, and the Federal Reserve began to ratchet up interest rates while treasury yields increased in kind. While much of this was good news, it created problems for the annuity purchaser from just a few years ago.

Concerns with Older Annuity Accounts

If you invested in a traditional fixed annuity account during these low yielding years, you may find yourself in a dilemma. The problem: many of these accounts have fallen to their guaranteed minimum yields. Currently, they might only offer a paltry return between 2 and 3.5 percent. There are several reasons for this decline. To begin with, many annuity accounts have a first year bonus that will not be paid in subsequent years. In addition, these accounts often provide a floating rate of return. Their returns are not locked in. A floating rate annuity is quick to go down in years where yields are decreasing, but slow to come back up when yields in the treasury market increase. In essence, if you purchased an annuity in the lean years, you may have locked in poor yields for the duration of your account.

There are other issues as well. If your annuity has not reached maturity, you will have to pay surrender penalties if you cash in the account early. In addition, if you purchased a non-qualified annuity account, you may have accumulated tax deferred interest. Should you transfer your annuity to anything another than another annuity account, you could have income tax to pay. Taxes and penalties will quickly lower your account value upon early surrender.

How to Improve Your Fixed Annuity Returns

Rest assured ─ this is not a story of doom and gloom. The fix to this problem is simple. You simply exchange your old annuity for a new account. Rates have increased dramatically over the last three years, and newer annuities can lock in much higher yields. Furthermore, it may be a wise decision to lock in rates with a guaranteed fixed yield as oppose to a floating rate of return.

Unless your account is very new, the higher guaranteed yields can more than make up for any surrender penalties your may have. A sizeable account can accumulate thousands of additional dollars by making this change. (It is important to note that many economic pundits are already predicting that the Federal Reserve Board will begin to lower rates in 2007. This will most certainly force treasury markets and annuity yields lower for those who have not locked in higher rates.)

Income Taxes on Tax Deferred Interest ─ 1035 Exchange

Additionally, if income taxes are a concern, you should understand that taxes are not due if you transfer your old non-qualified annuity to a new annuity account. This is why owners simply transfer from one annuity to another in what the I.R.S. has deemed a 1035 tax-free exchange. Income taxes will only be due if and when you decide to take out your interest. If yours is a retirement account (also called a qualified account) you can simply perform a rollover. If done properly, (with the help of an experienced agent and/or accountant), a qualified rollover is not a taxable event either.

In summary, no longer do you need to dread your quarterly annuity statements. There are several reputable insurance companies providing very reasonable guaranteed returns. These products will provide you with higher yields, potentially shorter durations, liquidity and peace of mind. An annuity rollover or 1035 exchange can be a wise investment choice.

A.M. Hyers has been working in the insurance and investment industry for nearly ten years. He owns and operates Ohio Insurance Plan, an independent insurance agency doing business in Ohio, Missouri and Georgia.

His agency offers products to individuals, families and any size employee group. They use the leading national insurance carriers to offer quotes, illustrations and relevant information on life insurance, health insurance and HSA accounts. They also offer disability and long term care insurance as well as annuity policies, Medicare supplement plans and Medicare Part D coverage.

Visit them at:
http://www.ohioinsureplan.com
Learn more about fixed annuity products
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Best Fixed Annuity Coverage - How To Find It

To get the best fixed rate annuity coverage you definitely need to shop around to find a good deal. The easiest way to do this is to get on the Internet and start comparing insurance rates. There are hundreds of sites on the World Wide Web that specialize in offering charts and product sheets so that you can compare different offers side by side. These types of insurance comparison web sites that make it quick and easy for anyone to compare different offers and interest rates, even if you have never taken out insurance or a pension before.

The reason that most people end up paying too much for their fixed annuity plans is that they don't bother to shop around for the best annuity coverage. It is such a tedious job that sometimes they just take the first deal that they run across.

This is just not the way to go about shopping for the best fixed annuity coverage. You should at least go to the same type of time and trouble that you would to shop around to find the best credit cars, mortgage or car insurance. You should also do this in a short amount of time as it is inevitable that the insurance company will eventually ask for your social insurance number. This of course is used to check your credit rating, which can also have an impact on the rate of interest that you are offered.

Another thing to look at, besides price is just exactly what the plan actually covers. Just because it is cheap does not mean it is the best fixed annuity coverage for you. Finding the ideal plan can mean taking many other things into consideration besides price including fees, the price of withdrawal penalties and the structure of the plan. Most of this information can be found in the fine print of your agreement with the company, which of course you should ask to see and read thoroughly before signing on the dotted line.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Best fixed annuity coverage.

The Variable Annuity versus The Mutual Fund

Get ready for the battle of the new millennium, the variable annuity versus the mutual fund. Over the past few years, the variable annuity has come under extreme attack, as an investment vehicle for retirement because of its expenses and taxes laws regarding withdraws. Actually, many articles have compared the features of the fixed annuity to a mutual fund, but unfortunately; that is like comparing a wagon to a jet ski. On the other hand, the variable annuity experiences market risk and so does your mutual fund; therefore, this provides us with a fairer comparison.

The variable annuity takes a lot of criticism, since individuals pay ordinary income taxes on withdrawn earnings. Also, the variable annuity is subject to stringent tax rules such as early withdraw penalties before age 59 1/2 with a few exceptions; even if the plan is classified as a non-qualified account. Mutual fund taxes are based on the fund manager's classification of the dividend. If the gain is considered a short-term capital gain in the mutual fund, this amount will also be taxed as ordinary income.

There has been some discussion over the high expenses associated with the variable annuity. Most variable annuity plans average a "mortality and expense" charge of about 1.2% a year and each separate account you choose may add another .8 % to .9% a year plus administrative costs. Mutual funds also have fees. Some funds require you to pay a sales charge when you purchase it, while others require you take a number of years to pay off its sales charge or are considered to be no-load mutual funds. Regardless of the mutual fund you choose, you will have to pay internal fees which may include management and those pesky 12(b)1 fees. The average yearly mutual fund fees generally run .75 to 1.3%, depending on the fund. By now you are wondering why anyone would use a variable annuity for retirement planning? Actually, that is for you to decide not me. F.Y.I., those investment specialist crying about an annuities' surrender charges should never sell B-share mutual funds, because there is not much difference.

The variable annuity has one defensive stand left? Let us say two people invested $20,000 in a variable annuity and the other in XYZ Mutual Fund. Both of these people die before spending a dime of their retirement accounts. At the time of death, each person had the same asset allocation model and $14,000 in their account. Whose beneficiary will get the most money? If your variable annuity has a death benefit that guarantees your original investment minus withdraws, you would have done better with the annuity. However, there are many other scenarios to consider, and the tax rules regarding non-qualified annuities and surrender charges may not allow easy access to your money before age 59 1/2. You decide which is a better retirement investment for you. The most important thing you can do is something, instead of nothing at all.

Disclaimer: The information in this article should be construed to be insurance advice. Always consult a financial or insurance professional or tax accountant to determine what coverage is right for you.

Mr. Jason Cunningham is the lead writer for http://www.financial-shopper-network.com and http://financialshoppernetwork.blogspot.com.

The Variable Annuity and Retirement Planning

Over the years, there has been much debate on why an annuity should not be used for retirement planning. However, we will save that debate for another day. The annuity got its first big break in the retirement business when TIAA-CREF introduced the variable plan in 1952. Today, the variable annuity is used in many other forms, including the 403B, 457, and the traditional, Roth, Simple, and Sep-IRA. We will discuss some of the features and benefits of the annuity. Earnings inside the variable annuity grow on a tax-deferred basis and are subject to a 10% early withdraw penalty before age 59 1/2, except with a few exceptions including: separation from your job at age 55 or older, when money is used to pay medical bills exceeding 7.5 % of your Adjusted Gross Income in a given year, etc. Also, the variable annuity generally has a death benefit. Usually, the annuity's death benefit will pay the named beneficiary the greater of the premiums paid into the account minus any withdraws or the current account balance. For example: if you invest $100,000 in a variable annuity and upon your death, your account balance is only worth $30,000, your beneficiary will receive $100,000 minus expenses and withdraws, but taxes may be due at that time (this applies only to annuities with this specific death benefit). The variable annuity usually has several separate accounts. One of the advantages of the variable annuity is the chance for diversification, in spite of limited dollars. If a person has only $3000 to invest in a Roth IRA and wants a portfolio to match their risk tolerance, this can generally be attained in a variable annuity. The separate accounts in a variable annuity represent large, small, mid-cap, international investments, bonds, or indexes like the S& P 500 or the Russell 2000.?Often a person would have to pay a $1000 to a mutual fund company, in order to have the same offering of diversification. You can usually switch between fund families in a variable annuity without paying another sales charge, unlike some mutual funds. While everyone might not need a variable annuity for retirement, some people enjoy its features. The death benefit of some of these annuities allow some individuals to leave an inheritance without the worry of market loss. However, be mindful that a variable annuity is subject to retirement rules and regulations, just as one's IRA or 401K at work. *Disclaimer: This article does not constitute financial advice. Always consult a tax advisor or financial advisor when making investment decisions.?

Mr. Jason Cunningham is the author of many articles at Financial-Shopper-Network.Com and Financial Shopper Network Blog

Annuity Quotes

To gain an understanding of annuities, we need to start at the beginning. In the year 1740, the Presbyterian Church began to use annuities in order to aid widows and the priestly order. The simple purpose of an annuity is to ensure that you have a sound financial back up during retirement. Today, there are different kinds of products sold by Insurance companies and agents. Before you take out an annuity ensure that the Insurance Company has a license to practice in your state. The State Insurance Commission is a legal body that regulates Insurance companies to make sure they have adequate funds so that investments are not jeopardized.

Different companies have annuities with different rates and returns. There could be several reasons why you would want an annuity. For example, an annuity helps you pay reduced tax, avoid probate and save for the future. You can look out for your future and that of your heirs. By putting money away for an inheritance, you are making a wise decision for your family. When choosing an annuity quote it is important to remember your financial status and goal for the future. Annuity quotes differ according to the annuity you choose. There are several companies that offer quotes for Immediate Annuities, Fixed Annuities, Equity-indexed Annuities and Variable Annuities.

If you choose an Immediate Annuity, then you can expect to receive a fixed or variable sum of money every month or quarter or according to your specification. The amount of money you receive is based on your initial deposit and the time duration of your annuity. If you choose a variable plan then make sure that your investments do very well. A Fixed Annuity is a low risk annuity because you receive a minimum interest whether or not your investments do well. These are more stable in nature and you will always know what to expect. There is no gamble in investing in such an annuity. Some companies that offer this are National Western Life, Jefferson Pilot Life, Great American Life Insurance Company, Allianz Life, American National Insurance Company etc.

Equity Indexed Annuities, as the name suggests is based on the stock market index. If your chosen index rises then you gain and vice versa. There is a certain amount of risk in this product; however, the bright side is that you gain if your investments do well. Variable annuities give you the freedom to decide where you want to invest, but it also does not protect you in case of loss. The benefit is that you get to keep all the profit. These annuities are good for those who are completely aware of the market dynamics. Therefore, before choosing an annuity quote you must first know what kind of annuity you really require. There are several online insurance portals that offer to give you an annuity quote instantly. All you have to do is fill out an online form and your quote will find its way to you.

In conclusion, choose an annuity quote that comes from the right source. Ensure that your agent is licensed, knowledgeable, reputable and experienced. It is always best to go for an agent that comes as a recommended source. Further, you can opt to receive multiple annuity quotes so you have a choice in front of you.

Robert co-founded Insurance4USA.com, an insurance quote shopping service, in 1999. He has been a licensed insurance agent in New York State since 1990