Help for my sister

[bbuzzard]

Quote:

Originally Posted by Texas Proud Her response was... well, I would have zero if it wasn't for the guy who came around and pestered me into starting to put money in the system... so, I know it is high fee, but I would have nothing for him... she does plan on moving the money, but has been slow in doing so...

My wife's grandmother put about $100,000 in CDs at a bank in 1976 when she sold her business. 28 years later, when she died, she had about $250,000 (she never spent any of the interest, just kept "reinvesting" it). We gently tried to get her to move it, but she was loyal to the bank (now owned by someone else) because they loaned her the money to start up the business in 1932!

I estimated she would have died with about $1,4000,000 if she had invested in an S&P index fund. OTOH, it made her happy and she felt secure with what she understood.

[shorttimer]

I also have the same situation. The funny thing is that my sibling in the most trouble attributes much of his money problems to luck. While they spend tons of money eating out, buying junk and trading cars every couple of years, he thinks people are lucky to have no mortgage, while many have no mortgage because of not eating out, staying out of stores and driving cheaper cars longer. They have also declared bankruptcy twice, believe it or not. I think there is a mindset that is very difficult to penetrate.

If someone does not ask for help, they do not want it. However, we have been asked for money help by the sibling named above. We were able to tell him that due to changes in DH company, we were in danger of losing the only pension we have and it was too risky for us. He accepted that, but I anticipate we will get more requests in the future. I think if he got $50,000 tomorrow he would piddle it away instead of paying off debt or putting it in the bank.

[bongo2]

Quote:

Originally Posted by mclesters Sheryl, I meant to tell you that I printed out your little saying when you wrote about your mom and dad in the thread on money influences.* It is taped along with other inspirational words from others on this forum, notably Cute Fuzzy Bunny and Brewer, on the wall nearest my computer at home.* I never said thanks, but that is a great little piece of verse! Sarah

mclesters, you should start a thread with your favorite inspirational words from the forum. I'd be very interested in what you've collected!

[HFWR]

A veritable suppository of wisdom...

[Mr._johngalt]

Quote:

Originally Posted by HFWR A veritable suppository of wisdom...

How did I get into this thread?

JG

[Andy]

Quote:

Originally Posted by shorttimer I also have the same situation. The funny thing is that my sibling in the most trouble attributes much of his money problems to luck.* While they spend tons of money eating out, buying junk and trading cars every couple of years, he thinks people are lucky to have no mortgage, while many have no mortgage because of not eating out, staying out of stores and driving cheaper cars longer. They have also declared bankruptcy twice, believe it or not.* I think there is a mindset that is very difficult to penetrate.

Boy, isn't that the truth!

[Moderator edit: quote formatting.]

[mjarzoms]

This is a problem we will all continue to see as corporations shift all retirement responsibility to unwilling employees and governments can afford to provide only a safety net and minimal assistance.

I expect any advice you give will not be listened to and may cause ill feelings. Good luck with this one, "Your Money or Your Life" is a great book but I doubt it could cause any shift in beliefs at this point.

[excellent]

The corporate world is 100% sure to not teach those most in need of investing advice. They want people to spend till they die, not save till they retire. If you don't talk to your relatives who are near the supposed retirement age, who else will. I mean, if you have the guts to talk to those close to you about their financial situation, then all the more power to you. I only recently came to the discovery that almost all Americans I meet have no idea how or what they are putting away for retirement, or that they even needed to at all. It's really sad. I mean, the book automatic millionaire could be summed up in like 10 lines, and if everyone in America really understood those lines they'd all be better off and more financial secure later in life. Situations like this are exactly why I want to catch clients early in life before it's too late or the financial situation becomes too dire, because everyone needs advice and honestly most FA's ARE probably going to saddle clients with insane load funds or unnessary fees. The importance of what I am trying to do (build a sales team of intelligent, caring FA's who share the same vision as me) was only further highlighted when a friend of mine went to his accounting/management class and the teacher took a whole day to explain why it is so important to save early. My friend is also in WFG, and he says that he gained a lot of respect for the teacher and our mission because it made him further realize how priveledged to have learned this knowledge from our parents and such, and that 99% of people aren't going to ever sit in on a class like that, or that noone is going to care for their students and take an entire lecture out to help the students in a meaningful way like that. But seriously though, the more people you are persistent with in conveying the bigger picture of why it's important to save the better... it's a conversation you can be proud you initiated. Iunno, I'll stop rambling now.

[FinanceDude]

I admire your passion.............

Unsure how WFG fits the bill to achieve that............

As you learn more, let us know.........

[excellent]

I see it as... say...
ok... let's see... a good parallel... hm...
ALRIGHT!
Ok so let's say you're way into politics right, and want to get the word out about your chosen party or maybe a bill or something that's being voted on. Alright, well you want to devote a large portion of your time doing so... but let's say you're not financially independent and/or can't feed yourself without a job. Well, there's things like contributions to the parties in question going towards funds that are then used to pay people like the aforementioned person to tell people about their party or movement of choice. So... I guess how wfg fits into it... well it's my own inroad into the financial world, and it seems like a good place to get started at a rapid pace and get involved with clients right away, as well as training my own team of advisors who can share in my goals. Also since um... well... everyone that does something for society usually gets paid, advisors have to get paid in some way so they can eat food and stuff, not in any means excessively compensated or anything, which isn't my goal of course. Um... I don't know... it just seems like a good place to start my career in the world since I don't really have prior direction in any sort of field that requires previous expertise, and I have no idea how this relates to the thread, I'm just trying to answer your question using a really non-connected analogy.

Hopefully people can listen!!! But yes, habits are hard to break... very hard to take someone else's advice seriously when you've been doing something for decades or a lifetime. Keep trying!

[MooreBonds]

Excellent...while this isn't the post that you brought up WFG in...perhaps you could explain to your clientèle that you are starting to sell life insurance because it's the (relatively) most ethical thing you can sell in this industry from the perspective of a 19 year old with few contacts, and that you would appreciate having the opportunity to meet with them again in a few years when you have more knowledge/experience and can offer them more products that are truly in their best interest.

With life insurance, it's pretty easy to compare one company to another, since most policies are the same and the price is the only difference....but with mutual funds/etc., most fees are hidden and it's not as easy to compare. So stress that you chose this route since it's ethical and honest and allows you to also meet people that you can help in the future.

[excellent]

You pretty much summarized what I aim to do as of now, because a client is a client for life, not just a sale. As I accumulate knowledge I will then dispense that gained knowledge to clients that I may currently be reaching out to... I actually think that that summary defines what my aims are quite nicely. Thanks MooreBonds, it seems like you know how to word intangibles quite well, I'll keep that post in mind when I am talking to potential clients who ask questions along the lines I've encountered. (: Have a great day!

[FinanceDude]

Quote:

Originally Posted by MooreBonds Excellent...while this isn't the post that you brought up WFG in...perhaps you could explain to your clientèle that you are starting to sell life insurance because it's the (relatively) most ethical thing you can sell in this industry from the perspective of a 19 year old with few contacts, and that you would appreciate having the opportunity to meet with them again in a few years when you have more knowledge/experience and can offer them more products that are truly in their best interest. With life insurance, it's pretty easy to compare one company to another, since most policies are the same and the price is the only difference....but with mutual funds/etc., most fees are hidden and it's not as easy to compare. So stress that you chose this route since it's ethical and honest and allows you to also meet people that you can help in the future.

I agree that life insurance is a no-brainer to young families struggling with mortgages and credit card debt, etc..........however there's a LOT of life insurance sold unnecessarily in this country. I worked for a couple years as an NML rep..........I think we all agree they're a pretty good company.........but the abuses I saw from thir agents made me shudder...........that's another thread entirely.

Bottom line, "excellent" seems to have a good heart. I think that if he just got folks to buy 8-10X their annual household income in 20 0r 30 year term, tried to get them to budget and LBYM, showed them how to take advantage of their group benfits at work, and then moved into 401K allocations and ROTH IRA's and such, it would work.

I am leery of how the "team of advisors working for me" works. No guarantee your "team: will be as honest as you..........

[excellent]

Yes but I will speak softly and carry a can of whoopass for those I find trying to undermine the honesty of the entire team.
(:

[FinanceDude]

Quote:

Originally Posted by excellent Yes but I will speak softly and carry a can of whoopass for those I find trying to undermine the honesty of the entire team. (:

I think you will learn more and gain better experience with a firm like New York Life, Prudential, or NML than WFG.........these firms have legendary training.........

[old woman]

Quote:

Originally Posted by bbuzzard My wife's grandmother put about $100,000 in CDs at a bank in 1976 when she sold her business. 28 years later, when she died, she had about $250,000 (she never spent any of the interest, just kept "reinvesting" it). We gently tried to get her to move it, but she was loyal to the bank (now owned by someone else) because they loaned her the money to start up the business in 1932! I estimated she would have died with about $1,4000,000 if she had invested in an S&P index fund. OTOH, it made her happy and she felt secure with what she understood.

My grandmother died last month, she was a poor women all her life. She raised kids in the depression, married in 1924, she was 98. She was widowed after 54 years and lived alone about 25 years on SS. She had a little money in the bank, she was saving for her old age. For the last 18 months she lived in assisted living paid her own expenses, never had to take charity. When she died she had 61,200 left over after her funeral expenses. Sure she could have invested the money had had a more but she fought hard to get her life savings saved and with a 8th grade education investing would have opened her to con artist. She could understand the money being in the bank and in CD's. When she got to old her son in law would go get her $100 a month from the bank to spend. He paid her bills and bought her groceries so she just had to buy herself a drink at the bar or a sandwich in town. She walked since she never learned to drive and it was a small town. Her SS check was direct deposited. Life was simple.
Sometimes enough is plenty.