In This Issue... July 7, 2015

Feature Article - Most People Have Unrealistic Expectations For Money Invested In The Market!

Improve your attitude - Earl Nightingale - Directline 17 - The Change Agents Of The Future... Do You Qualify?

Become Their Trusted Advisor - ARE YOU AFRAID TO PROMOTE YOURSELF?

Coaches Corner - A single second. A single thought. A single step.

_________________

Do You Have A Friend Or Associate Who Might Benefit From This 'Career Changing' Information? Why Not Forward This Newsletter To Them?

Or... Take A Minute To Fill Out This Referral Form
And you'll receive our free gift... "21KeysToOpenReferrals.pdf"

What Do The Top Life Producers Know That You Don't...

Most People Have Unrealistic Expectations
For Money Invested In The Market

Dear ~Contact.FirstName~,

If you listen to the people selling stocks, bonds and mutual funds; brokerage firms; and magazine articles; just about all of them want you to believe that you can average around 10% a year investing in actively managed funds. However, there is a significant problem with what they are telling you.

Consider, if you were to look at the S&P 500 Index 10 year actual annual return, ending December 31, 2012, you will find that it was only 4.95%. (Note: Very few funds out perform the S&P 500 Index in any given year, let alone over a long period of time.)

Now consider... NerdWallet investigated the actual outcomes of investing in actively managed funds, verses passively managed funds. (Note: passively managed funds mirror an index such as the S&P 500 Index.) The study looked at more than 24,000 mutual funds and ETFs available to U.S. investors for the ten-year period ending on December 31, 2012.  Note: Only 7,943, less than one third, were in existence for the full ten years.

The asset-weighted average return of the actively managed mutual funds in those 10 years was 6.50%, while the passively managed index funds averaged 7.30%.  Similarly, for equity funds the average return was 7.19% for active managers, and 7.65% for passive funds. In this, and in numerous studies Index funds outperformed actively managed funds, regardless of whether returns were measured by asset-weighted average, median, or a simple average.

Now, did you notice that the actual 10 year return for the S&P 500 Index was only 4.95% in 2012, and the NerdWallet study is comparing average returns of over 7%? Part of the reason for the difference is because NerdWallet is using 'Average' annual returns, verses actual annual returns.

Consider, if you have a 100% return one year and a -50% return the next year, then they will tell you the 'Average' return for those two years is 25%. {(100%-50% = 50%) / 2 = 25%} However, the actual return is quite different. Let's do the calculations... ($1 + 100% = $2),  ($2 - 50% = $1). So, the actual return is 0%, not the average 25% they want you to believe.

Obviously, for the 10 year period ending December 31, 2012 mutual funds and ETFs did not come close to the average 10% return people are being told about. And the actual return is quite a bit lower than the average return being touted.

Let's take a look at the actual returns of the S&P 500 Index for the past 10 & 15 years...

...the S&P 500 Index actual 10 year annualized return, Dec. 31, 1999 - Dec. 31, 2009 was (02.72)%.

...the S&P 500 Index actual 10 year annualized return, Dec. 31, 2004 - Dec. 31, 2014 was 5.44%.

 ___________________

...the S&P 500 Index actual 15 year annualized return, Dec. 31, 1999 - Dec. 31, 2014 was 2.27%.
 

So, what is a realistic expectation for money in the market?

At the recent ETF Conference, January 24-27, 2015 a presentation by Joe Davis, chief economist from Vanguard, warned that advisors need to set realistic expectations with their clients for lower investment returns over the next few years. According to Mr. Davis, Vanguard’s outlook is the most guarded it has been since 2006. He warned that ultra-low rates on bonds as well as high US stock valuations portend nominal rates of return for a 60% stock/40% bond portfolio of only 3-6% over the next 5 years.

A few years ago, Vanguard founder Jack Bogle said: "Buying and holding stocks and bonds for the long term and maintaining a diversified portfolio are still the smartest strategies for the average investor." "Betting on long odds, doesn't pay off very often." "People ought to get over the illusion [of higher expectations] and realize that they may have to invest for longer time periods, start earlier and save more.”

__________________

Jesse Felder, in his article Here's Why Investors Are Now Facing Another 'Lost Decade' in The Stock Market on 1/27/15 wrote; In my last piece, I wrote that stock market valuations are currently at the same level they were when Warren Buffett, in November 1999, wrote his famous op-ed for Fortune magazine explaining that investors would inevitably be disappointed by returns over the coming decade. The stock market actually declined 30 percent over the following 10 years. "Disappointed" was actually an understatement as investors were downright despondent.

In fact, when looking at median valuations in today's market, stocks are even more overvalued than they were at the peak of the internet bubble, some 3 or 4 months after Buffett's piece was published. Considering valuations are roughly equivalent, or even worse than back then, what are the odds that we see another "lost decade"?

Jesse Felder has been managing money for over 20 years. He began his career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he works with a select group of clients at Felder & Company, LLC in Bend, Oregon.

__________________

June 4, 2014... Today, the analysts at Societe Generale update their 10-year outlook for the global stock markets. In brief, they don't think investors should be anticipating the double-digit annual returns of the recent past.

"US equities face three headwinds: cyclically-adjusted valuations (CAPE, starting date 1881) have returned to very expensive territory, corporate margins stand at historically high levels, and after already five years of growth from the 2009 trough, we estimate that the probability of another recession kicking in is close to 100% within the forecast timeframe (the longest cycle ever was 120 months, or 10 years)," they write. "But US equities have supports as well, such as impressively strong balance sheets and the beginning of a new M&A cycle, backed by a highly reactive central bank."

_________________

Here is Dalbar’s 2015 “Quantitative Analysis of Investor Behavior for 2014." You will notice that the average investor has a history of receiving investment returns that are significantly lower than their corresponding indices.

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.

___________________

Summary
I wish there was a way for you to receive the 10% (Or even 8%) that you are expecting when you invest in the market. However, independent studies by companies like DALBAR, Inc. continually show that the average investor is receiving far less than a 10% long-term return. Now, consider that many experts are predicting lower than normal returns, during the next decade.

Investing in the market is gambling with your future. Does it make any sense to gamble with the money you need to cover your basic necessities of food, shelter, clothing, etc., when you can get an actual rate of return of 4% - 7% with minimal risk.

Lew Nason
Trainer, Coach & Mentor
'The 9 Out Of 10 Guy'

Updates For Our Member's Only Private Site
 Insurance Marketing and Sales Resource Center™

2015 Barometer Report
The Insurance Barometer is an annual trending study that tracks the perceptions, attitudes, and behaviors of consumers in the United States. Now in its fifth year, the study seeks to understand consumers’ financial concerns and how they think and act with regards to financial products, with a particular focus on life insurance. 

Life Insurance FAQ
Frequently asked questions by consumers about life insurance.

Stretching Out Your IRA
The purpose of your IRA is to accumulate funds for your retirement, isn't it? While that may be true, an IRA can also be used as a vehicle to transmit wealth to your heirs. Extending the taxfree growth of an IRA to children and other beneficiaries is becoming increasingly common. But it requires passage through a minefield of arcane tax regulations, and it requires attention to some critical time deadlines.

_________
 

Are you staying in front of you clients, friends, family, neighbors and prospects, so when they need help you're the first one they think of and call? The best way to stay in front of them is with a personalized client newsletter! Note: You can get a free NON-personalized client newsletter as a member of the  Insurance Marketing and Sales Resource Center.

Judge Us By The Company We Keep

Not sure we can help, or if our services are right for you... Don’t Wait... 
Call us Toll Free to schedule a No Obligation, Free 15 Minute Consultation with Lew or Jeremy.
Toll Free In US 877-297-4608 / Direct Line 770-443-2852 (M-F, 9AM-5PM, EST)

It’s A Shame For You To Struggle Finding Prospects
& Closing Sales, When Our Members Do It So Easily!

(At only $25 per month can you afford to pass this up?) 

"Thanks Jeremy! I spent a good three hours reading the material under the membership mini-university last night and I must say that I learned more last night then I have since entering the business nearly 3 years ago! Bryan Grissum 

"I have combed through your website (the Insurance Marketing & Sales Resource Center™) and read almost every page and want to say thank you! The information has helped big time, my production is up 65% over last year already." Rick H.

“Awesome, Awesome Site… I’ve recently become a member on your site. Wow, this is something I’ve been looking for all of my agent life, power packed with everything an agent needs to be a professional in their industry. I really have my own university wherever I happen to be. It is no doubt the best site available for education on the Insurance Industry. Thank You.” Sally H.

"Will, thank you so much for adding the Trusted Advisor videos to the Private Member site. I have watched the videos several times so far. Please continue to add great videos like those to the Private Member site. Best, Ric" Ric Komarek, RFC

"If anybody wants to be a player in this business and really make money, they need to stop hopping from program to program and get involved with the Insurance Pro Shop to learn to be a true, trusted professional in this industry.​  Call Jeremy or Lew and let them change your practice and your life.
William Booser and Tim Counts, National Annuity and Life Sales

“Many ‘experts’ claim to have the answers on how to grow your insurance business… It is nice to actually meet someone who really has the tools and strategies needed to succeed. Lew Nason is the person who truly delivers.” Kevin Davis

Improve Your Attitude And Change Your World

Earl Nightingale - Directline 17

The Change Agents Of The Future... Do You Qualify?

New Agents Quick Start Program

Our New Agents Mortgage Insurance Tool Kit™ is a simple, affordable, proven Bread n' Butter Mortgage Life Insurance Lead and Sales Success System that easily produces $2,000 and much more of cash value life insurance commissions every week ...in as little as 30 days.

We are doing everything we can to help you...
We Even Offer Payment Plans To Help You To Get Going Today!
Click on the product above for the complete details.

How To Become The Most 'Trusted Advisor'
In Your Local Community!

ARE YOU AFRAID TO PROMOTE YOURSELF?
By Lindsay LaFollette, Marketing Specialist, Postema Marketing Group, LLC

If someone had a solution to one of your greatest obstacles, and they didn’t tell you, would you be upset?

Let’s say someone could show you how to earn more money while working significantly less at the same time. Wouldn’t you want them to share with you every detail about this solution you’ve been dreaming of?

What if the person keeping this secret was a friend or neighbor? How would it make you feel if they never took the time to help you improve your life?

Doesn’t everyone want solutions to their greatest challenges? I know I do, and I’m willing to bet you do too. So, why are you so reluctant to tell the world about your services and expertise?

Many advisors feel that promoting their services makes them pushy and that it will drive away prospects and clients. It’s likely you’ve thought the same thing at one time or another. However, if you have realistic solutions to real-world obstacles, people never find you pushy because you are improving their lives.

Whether or not they personally tell you, people are begging you to share your resolutions to their issues. Stop worrying about pushing people away or offending them. Instead, continually promote your services and expertise so when their time of need arises, they will know exactly who to turn to for help.

Your knowledge and skills are extremely valuable, especially to those who do not possess the same assets. Don’t you appreciate when experts in other fields, such as mechanics, accountants, photographers, barbers - and the list goes on - promote their services? It certainly makes my life easier to knowing who they are, where they are, and what they do.

As an insurance agent and/or financial advisor it is just as, if not more, important for you to share your assets with your friends, neighbors, and whole community. If you don’t, then you may be depriving people of the life they could have if they realized you could help them. Furthermore, if they find out five years from now that you could have changed their life today, do not be surprised when they are upset with you.

I will admit, your services and expertise are not valuable to everyone, but they are to many, and you should not be the one to make that decision. However, there is one decision you should make, and that is to promote yourself every single day.

You are valuable, and if you need help learning how to promote yourself, then just ask. There are plenty of experts in that field, too, who would love to help you help others!

You Can Double and Triple Your Appointments and Sales, By Learning To Ask The Right Questions!

Coaching Corner

A single second. A single thought. A single step.
By Dennis Postema

On January 1st, 2015, I was sitting at home pondering what my New Year’s Resolution would be. Then, it hit me. In just six short months, I had gained the twenty pounds I swore I would never see again in my lifetime. I’d like to say some dramatic event caused me to binge eat or that I was too busy to find time to exercise, but the truth was I was just plain lazy.

I have never considered myself to be entirely overweight, but I was certainly inching (no pun intended!) toward that border. I was unhappy with myself. I had lost the self confidence I once had, and, overall, I just felt exhausted with life. I decided that day, January 1st, 2015, would be the day I would change my life. And I did. And I did it without some crazy workout plan in mind or purchasing a subscription to a diet plan that was ONLY $400 a month. Instead, I did something so simple any person who is physically able to walk can do. I took one single step.

The famous philosopher Lao Tzu was quoted saying, “A journey of a thousand miles must begin with a single step.”

Take a moment, and let that sink in…
 

One single step is all that is standing between you and your goals. One step. That is it! If you take one step now, you are one step closer to your goal than you were before. It’s such a simple concept that is a very difficult task for so many. Speaking from experience, this one step (that is the most difficult step for most) is also the most rewarding.

As of today, I have not only lost 25 pounds, but I have pushed myself beyond limits I thought I could never achieve. On January 1st, 2015, I was winded after five minutes of walking. Today, I run/walk up to ten miles at a time. Five months ago, if you had told me this is where I would be today, I would have said you were crazy. I am doing it though! I am living, walking proof, that ONE SINGLE STEP can change your life.

This concept can be applied to every aspect of your life. What SINGLE STEP can you take towards achieving a goal you never thought was possible? What SINGLE STEP can you do to mend a broken relationship? What SINGLE STEP can you do to start earning the income you have always dreamed of?

MY challenge for you today is take ONE SINGLE STEP towards a goal or dream you have always wanted. That one step WILL change your life!

_____________________

You'll Quickly Double and Triple Your Income, When You Become The 'Trusted Advisor' People Want To See!

Are You A Member Of ProducersWeb?
If you want the latest information, from the foremost experts in the industry,
to take your career to the next level, then become a member. It's Free!

Follow Rodney Ballance, Sandy Schussel, Paul Mallet, Jeremy Nason and Lew Nason!

IPS Home Page   Product Catalog   Newsletter Archive   Contact Us