Self-Employed and Seeking Semi-Retirement Within 5

[Rucco]

Hello all,

After building up my business for the last 5 years, and now with a 5 year plan to semi-retirement I felt it was time to start researching a solid plan for this. This forum looks great with a ton of supportive people.

I'm an insurance broker in the Medicare supplement insurance market, and thankfully my compensation pays renewal income on each client. So I'm basically building my own annuity and I can easily continue to add to this with a mere 10-15 hours per week or less when the time comes to relax a bit. My business debt will be paid in about 18 months which opens up a huge amount of resources that I really do not have a plan to do anything with.

I would like to have a solid game plan well before that to really hit the ground running. I'm 43 now and while we don't have other investments (other than an emergency savings) it's because the ROI on investing in my business is superior to anything else out there.

Goal is to semi-retire by age 48 or 49. The beauty is I can easily work remotely from anywhere in the world so traveling is absolutely on the list. Quite honestly I likely won't ever "quit" anything completely, in fact I like the idea of maintaining the business (Switch client's policies, service referrals, etc) and keeping busy then, just cut way back on the hours and focusing on growing it.

So that's it for now, just wanted to say hello and I look forward to learning from everyone. Any recommendations are always welcome!

 

[Animorph]

I'm an insurance broker in the Medicare supplement insurance market, and thankfully my compensation pays renewal income on each client.

Welcome Rucco.

Guess I want to avoid buying Medicare supplement insurance!

 

[Rucco]

Welcome Rucco.

Guess I want to avoid buying Medicare supplement insurance!

Thank you!

Why would you want to avoid buying it? It's some of the best health insurance (especially now) that people will ever see in their life.

 

[Animorph]

Thank you!

Why would you want to avoid buying it? It's some of the best health insurance (especially now) that people will ever see in their life.

I assume I'd be paying your renewal income each year. Standard for insurance products I guess, but we're trying to avoid fees like that for investments. A small inside joke.

 

[Rucco]

I assume I'd be paying your renewal income each year. Standard for insurance products I guess, but we're trying to avoid fees like that for investments. A small inside joke.

Ah, thought that's what you meant. Rest assured, you wouldn't be paying me (although tips are accepted). The carrier does. No different than your auto insurance.

 

[jclarksnakes]

Well there you go, the insurance company pays it. Does not cost the customer one cent.

 

[jclarksnakes]

Guilty as charged, we are a tough crowd. Most of us are fine with salespeople earning a percentage on their sales. What most of us are not okay with are salespeople who tell us that that percentage comes from the company and does not cost the customer anything.

 

[Golden sunsets]

Off to a bad start here.

 

[haha]

Welcome Rucco.

Guess I want to avoid buying Medicare supplement insurance!

At least in my state it is total win, as the policy costs are equal whether you buy through a broker or directly from the company. I bought through a broker; he gives me excellent advice, and he lets me know when some change is afoot, or if my policy is increasing in price. He gave me a heads-up when my state changed its laws that allowed me to get out of a policy that had closed to new entrants, so it was a disadvantaged pool with no way for competition to hold down premiums

Sounds like an excellent business and helpful to the clients too.

Rucco, can you sell any policy approved in your state, or just certain companies you are affiliated with?

Ha

 

[MichaelB]

Welcome abroad, Rucco. This is usually a friendlier group, maybe they're distraught at the way Spain played this afternoon.

We'll be looking for supplemental soon, I agree with HaHa, it's a good deal and makes sense to work with an agent if possible.

 

[Rucco]

At least in my state it is total win, as the policy costs are equal whether you buy through a broker or directly from the company. I bought through a broker; he gives me excellent advice, and he lets me know when some change is afoot, or if my policy is increasing in price. he gave me a heads-up when my state changed its laws that allowed me to get out of a policy that had closed to new entrants, so it was a disadvantaged pool with no way for competition to hold down premiums

Sounds like an excellent business and helpful to the clients too.

Rucco, can you sell any policy approved in your state, or just certain companies you are affiliated with?

Ha

My intention wasn't to make this about a supplement thread, but that is correct you pay the same amount whether you went direct to a company or a broker like myself. If a company rep sells you their policy, they're looking out for their best interest because they have one option to sell you. I represent all the top companies in over 28 states and we have the pick of the litter to choose from.

I'm also constantly switching my clients to save them the most money possible each year, and quite honestly after helping over 2000 people I'm proud to say not one of them has ever complained about me stating I just get paid by the company. Sounds like you have an outstanding broker Haha.

It is an excellent business, I've worked more 14 hour days than most people have worked regular, and I'm extremely proud to have helped so many seniors. This hard work will also provide me with the chance to work part-time and be semi-retired in a few short years.

To answer your question Haha I'm licensed in 28 states and authorized to offer all of the most competitively priced companies in those states. So it's win-win for everyone.

Cheers!

 

[unno2002]

For the self-employed, have you looked into a "solo 401k"?

 

[Totoro]

Guilty as charged, we are a tough crowd. Most of us are fine with salespeople earning a percentage on their sales. What most of us are not okay with are salespeople who tell us that that percentage comes from the company and does not cost the customer anything.

Anyone I don't pay for directly does not work for me. No exceptions. Please don't pretend you do.

In addition there is just no way you can convince me you have my best interests at heart when your financial incentives run in conflict with mine.

Like the 'independent broker' who told me he wouldn't go out and try to find a cheaper fire insurance because that would hurt his commission(!).

 

[haha]

A little knowledge is sometimes a dangerous thing.

Ha

 

[aja8888]

For the self-employed, have you looked into a "solo 401k"?

Yes, I have one since I still do occasional consulting work and dislike paying tax on that income ( I have to plan ahead though so I know when it makes sense to stop making the additional income). Others here probably do too.

 

[Rucco]

Anyone I don't pay for directly does not work for me. No exceptions. Please don't pretend you do.

In addition there is just no way you can convince me you have my best interests at heart when your financial incentives run in conflict with mine.

Like the 'independent broker' who told me he wouldn't go out and try to find a cheaper fire insurance because that would hurt his commission(!).

Sounds like you had a bad experience with your broker, he sounds completely unprofessional and you should find a new one asap. If I ever said that to any of my clients I would expect them to fire me immediately. However you should realize there are exceptions to your rule.

I'm constantly moving my clients to save them money and I'm actually making less because my commission is based on a percentage of premium. Over the years this has built massive trust and of course generated referrals for me, in which I then take care of those folks just as well. Anyone who thinks they're safer going direct to a carrier is sadly mistaken, because they will never tell you about lower rates with another company. I know because I'm saving these people hundreds or sometimes thousands per year by switching them.

Then as they get rate increases I shop the market and switch them again if I can, typically 2-4 years later. This is the only logical way to save the most money possible, and you have to sign up with someone eventually if you want the coverage.

There are a bunch of bad apples out there in commission roles who I'm sure take advantage of people, but there are the good ones out there as well.

 

[Rucco]

For the self-employed, have you looked into a "solo 401k"?

Thanks! Researching this now and it looks great.