We recently had a meeting and were told to expect renewal comp changing in the next 3-5 years, but higher first year comp, no comments on weather they are prepared for this type of transition since claims underwriting and basically everything else is falling apart as I write this comment. I hope all the agents invested the AIPP and with the fall off of business the AA3/4 agents are now seeing large income Dropping rapidly. It’s been a great career I have just two years left before 65, but feel for the new agent interns just starting going to be a complete different animal.
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I’ll be wearing my #ticabroke T-shirt at convention.
@5ico....I don’t know how the AA03/04 transition was calculated. But I do know the opportunity was there once, and then it was gone forever. I knew/know a lot of agents who transitioned to the AA97 and regretted it. When I came on board the AA97 was my only option. If they offer me a decent (and I don’t mean huge, but decent) bonus to leave, I’ll be out the door very quickly. And my wife will be 1000 percent in favor. She has wanted me to quit for quite some time.
My pencilled in retirement date has always been just after my last AIPP payment. Just sayin’.
I do find it rather ironic that employees who think the loss of the retiree Select a Gift is a tragedy.....feel qualified to tell agents how they should handle their finances and plan for retirement.
I’m good to go Thanks State Farm for the AIPP, aa 3/4 Transition money and a great career. Travel all over the world and met a lot of great people. We all knew one day this would be coming anyone who thought it wasn’t i hope it works out for them.
Wish- Don’t be so down on real estate, like any investment you typically make your money when and at what level you buy it not when you sell it. Entry point is always key. I also have invested heavily in real estate and the market, can’t say that I ever lost 50% on any piece of real estate I’ve ever owned, I wish I could say the same about the market over the last 20 years. I’ve also made some of my best equity buyers in the market when everyone else thought he was coming to an end. I guess like everything else, diversification is key.
B King- that’s pretty awesome that you sent us all a memo to invest, like we would overlook that. If we eventually do get hired at B K we might even promote you to assistant 3rd shift fri machine operator.
An agent that didn’t put the AIPP away are total id--ts we sent e-mails every year. Maybe they thought they could just sit there and do nothing for the next 20 Years. Burger King is hiring complete id--ts>
Go to the market, fixed income and deferred comp. I was in real estate heavy back in 09 it was the worst thing I ever did total nightmare. For agents that didn’t just put the AIPP in deferred comp or just the market are total id--ts, speculating on real estate is a loser. If I had to do it over again I would just drop into my vanguard account. For the new agents put it away immediately and stay on track four agents around me are really scrambling to get some $$$ in retirement we all know what coming been a good deal but the ride is about to sunset.
I thought the conversation Had transitioned to investing in alternate real estate asset classes to provide additional income streams in the event of an adverse agent contract change. Please try to keep up if you are going to participate in the conversation.
I’ll sell that new agent a beach property, that ride is over and renting out is crazy. I got one off Ga when it starts aging nobody rents. And insurance maintenance is a whole other deal. I hope they aren’t telling these new guys to buy rental properties that from experience is more of a headache than it’s worth especially when they change the tax laws years ago. I’m 64 and I can’t believe what our new agency force is being taught.
Not to smart buying beach property total id--t what happens with you need the money just like the seniors that paid there house off and then had to do a reverse mortgage that’s really smart, been making 7% on my AIPP which is in deferred comp, I don’t think anyone is making 7% a year on there home. My wife is a realtor they have changes coming to with there commission structure as well said a another housing crisis is on the horizon. Good luck on beach properties I have two and would love to unload now. Could do rental properties that’s a lot of fun especially when the check bounces.
I can leave agency at anytime now did the Agents sep plan on top of differed comp. Good Luck dummy.
If an agent is putting away 20% for 35 years it seems you should be retired by age 55 and not be bragging on what you did. The agents that have diversified into other assets classes for smart in case the market tanks and the AIPP is pretty good but only when you leave agency. There are some advantages into buying beach property and those returns have been a lot better in the last 15-20 yrs.
The people you need to feel for are the employees who got let go to cut expenses, the agent's staff who will eventually get let go to cut expenses, and the older agents who are still buying the company line and spending the money to build a brand that they will not be around to reap the benefit of.
Yeah they need guidance We have two new agents in my market talking filing section 7 bankruptcy. I told my sales guy that the market was over sold, he said we need to grow. He said they were both team members and making only 30k per year and it was better than what they were making before in there agents office. We had our meeting last week and I look over and I could see the stress on there faces. I felt sick when I left I realized it was just about the guy in front of the room because he only talk about Hawaii. Man I always thought State Farm had respect of course I’m going to Hawaii I’m just not feeling Christian about this whole deal. I pray it works out for everyone it’s just sad to see how far we have drop in resent years. My sales guys nice but he was in underwriting for years and I don’t think he has everybody interest at heart. Makes me sick.
U got that right on retirement I thank god everyday that I put 20% of my salary away for the last 35 years. It makes life with the misses a lot more comfortable with no worries. I had some agent friends put money into real estate rental properties and VRBO deals they wish they would have just done it straight up real estate is so up and down. It’s going to be a great retirement in 4 years if I had any to say to a new agent take 10 to 15% off the top and then set your budget, it goes fast and I have so many agents around me that have almost everything tie up in there buildings hoping to be able to get rental income for retirement wrong move in my area. I hope the new guys have the great career I have had Ed Senior was the man he said plan for retirement you never know what the future holds.
They better be talking with the newbies on retirement planning I have 9 agents around me that really haven’t put anything into retirement they said they didn’t have anything to worry about because they would never retire. They are great guys but I’m worried for there families we had an agent pass away and he didn’t have anything not even life insurance his wife is working for a friend of mine down the street it was really scary he was making a ton for years. I wish they had a more professional training plan for these guys after making all this money and you don’t have anything in the end is truly scary. I thank my old agency manager who set me up with the old ASEP and it was the best thing I ever did in my careerright after I got my contract. I hope it works out for everyone I’m glad my son became a dentist and didn’t go into agency.
I’m hearing horror stories on new agents up here in PA, they aren’t just cutting corners but doing things my old assigned underwriter would say we have a problem, they need to put some of these kids on AQA program the loss ratios are up in the 90’s and some over 100 lapse can is 48% and 54% respectively . I asked a new guy if they were given any guidance they said no. We were told to write everything we could, the SL told us he gets paid on new business and don’t worry. I then ask if he talk with them about there agent retirement planning team retention, team bonus incentives plans hiring or recruiting, community involvement strategies, team development and accountability and they both said NO, it was just about more Direct mail, Internet leads, Raw new business, DSS and Travel nothing else.
This is a recipe for disaster. Wonder why we are in a spin hole.
I also heard hammer coming down on SL position in January. May need to adjust life styles from what I heard. Not sure what value they really add to overall production, but my SL does a lot of info drops some production tracking does a good job doesn’t know what my specialists knows tho
but other than that the position is probably out lived itself my agency manager back in the day really help with team building training and we had a great group of agents and had alot of fun. Almost like family. Those days are days gone bye now it’s do apps for almost anything and any way. New agents in my market scramble the end of every month to meet some requirement not sure exactly what that is but I think they are cutting corners the new girl down the street has a 35% lapse cancellation ratio and said at a meeting I’m not making any money, everyone was silent at the table makes u wonder.
ADA is still here. But even as an ex Claim Rep I don’t feel too comfortable using it anymore. Things are so micro managed that I’m worried about somebody saying “that was incorrect under our current policy interpretation so we’ll just payroll deduct you”.
Maybe all bullsht to get established agents to retire so sales leaders can have choice agency assignments when asked leader positions are eliminated in January.
What the hell does ADA have to do wit the agent contract?
How has agent draft authority changed over the progression of these contracts?
This sounds like fiction. Maybe there was a meeting, but no leadership with any real information was there. If there was a sales leader speculating about this, they are probably in big trouble. Probably just a troll who spells "whether" like what's going on outside.
Agree, contracts will need to evolve with the marketplace and business model in the future. What will also change is the elimination of all previous contracts. No more decisions around new vs old. Just new/current.
There will always be a new contract every 10-15 yrs. AA05 came in 13 yrs ago and now it time to add another one.
I’m AA97 in my mid 50’s. Planning for the worst and hoping for the best. Been living on half of what I make and saving like crazy for ten years. Looking forward to no longer coming in for my daily beating, whenever and however that happens.