First, draw 3 circles side-by-side. Leave the first circle alone and move to the middle circle. Inside the circle make it into a pie by drawing 3 lines and make each portion of the pie same size. In the last circle, make it into a pie but this one have more pieces but no two pieces of pie should be the same size.
You take your 5 year old to their first soccer game, new uniforms, plenty of talk of future greatness, expectations are high and your child is excited. You are ALL in, excited to get the year going when the whistle blows. There is an instant mob of little legs swinging while family members are yelling encouragement. But nothing is happening. When the ball finally comes free of the mob, no one from the swarm has any idea where it is or how it got to where it now sits. You realize your completely committed to this for the years to come and your only hope is that things somehow improve. Time period to improvement is unknown but it will be long and often painful. This is your first circle.
Baseball has permanent pinch hitters they call designated hitters. These are the guys who can hit pretty well and they replace the poor performing batters in the line-up (i.e. Pitchers). Some leagues don’t allow this and the weak hitting player has to go take his futile swings and make their ceremonial out. Lets illustrate the weakness of this approach: in most teams, a third of hitters are good, a middle third or OK and another third simply are poor hitters. As these folks come to bat, the first third MUST score and not leave it to chance. The second third might be able to move one of the first third around and score but the last third are probably not worth it. When an inning is over, you probably didn’t do as well as if you had less poor hitters come to bat. You would have scored more and won more games. The weak player had to take their swings, you had to take the out and your goals were less than hoped. This is the second circle.
We go to the race track and your buddy brought the Daily Racing Form. He has read up on all races and is ready to wager on the future. He knows who he is going to bet in each race. Of all the choices in each race, he’s betting on which horse will win, come in second and which will come in third, the trifecta. He goes to the window and makes his well-thought out bets for the upcoming races. The betting window closes and your buddy turns to you and asks “Which horses did you bet on?” You tell him you don’t make bets in advance of something with unknown results. Instead, you bought a policy from the track that allows you to go to the window after each race has ended and collect your winnings. You are guaranteed the winning horse and the horse that came in second. This policy came at price, you only get 70% of what the winning horse makes and 30% of what the second horse makes. However, you NEVER loose money – EVER. This is the third circle.
So what do these have in common, all are strategies for Index UL policies. Many will buy policies with one index and hope that things work out. Others will divide their money in thirds and equal thirds of each and hopefully the weighted average is what they were looking for. The smart money doesn’t bet, it waits on the sidelines and collects the winnings in each year from the top performing index and the second highest performing index. There is no bias, opinion or predictions, simply results. This is available now and I am showing brokers every day how to properly design and sell this product.
Contact Information:
Brian Galey
3300 Irvine Ave., Ste #320
Newport Beach, CA 92660
Mail: briang@BGAinsurance.com
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Office: (949) - 769 - 5797
Fax: 949.955.9215
Website:http://bgainsurance.com/