Primerica

This Second Career May Be For You!

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By Jerry Lambert

(Author’s Note:  I originally wrote this article not long after I launched TBPC.  However, because of my association with Primerica at that time, I wasn’t able to publish it.  Since I have broken ties with Primerica, I can now post it.  I hope you find it enlightening and enjoyable.  – JL)

This week I am going to talk about one of the Side Hustles I tried fairly early on in my forced retirement.  Primerica (Primerica Financial Services).

Financial advisor sitting with coupleYou may, or may not have heard of Primerica.  It is one of the top financial services companies in the country.  The Primerica business model is unique.  They actually put the needs of their clients first.  That business model enabled Primerica (PRI) to go public with one of the most successful IPOs of 2010.

The business has two sides to it.  The client side and the opportunity side.  The client side offers products that range from investments, to debt reduction, insurance, legal protection, and much more.  The opportunity is to own a small business, with Primerica’s help.

Primerica is a solid company that has been in business since 1974, and has built its reputation by helping out families that have been ignored by the larger financial services companies.

That’s great you say, but how is this an opportunity to own my own small business?  A good question!  Primerica has grown the company by always being on the lookout for sharp people who want the freedom of running their own business.  If you meet with a Primerica Representative, and they are impressed with you, you will be invited to an interview.

Overhead view of business people talking

If you join Primerica as a Representative, your business is grown entirely on word of mouth referrals and your ability to recruit others onto your team.  You join the business as part of a team, then you start working on building your own team.  To build a client base and recruit potential Representatives, you will be asked to contact your friends and family.  This is to see if they are properly protected financially and / or looking for a way to start a small business.

This is where a lot of people will shy away from Primerica.  Nobody wants to tick off their family and friends by “ratting them out” to Primerica.  However, what it all comes down to is that every family should know where they stand financially, and where they can do better.  This is where you can help, with the financial products I listed above, and the prospect of earning some extra money.  If you decide to join the company as a Representative, there are some small startup costs.  $99 to join the company and $25 per month for website access.  That’s it.

Now, for the not-so-rosy part of the picture.  The targeted demographic age group for clients (and prospective Representatives) is 25-35, married, kids, job, and homeowners.  Since we are in the 55-65 age bracket, unfortunately that doesn’t apply to us.  However, if you have a large family, who might need some of the services that Primerica provides, you may be on your way.  Plus, some of your family members may be interested in becoming Representatives.

Man using two telephones

I’m not going to lie to you.  Unless you are a naturally outgoing person and / or have a large group of family or friends in the demographic I mentioned earlier, Primerica may not be for you.  I worked HARD for 9 months and came away with 2 clients and 1 recruit onto my team.  I am one of the clients and my recruit dropped out of the business before really getting started.

That said, this may be an income stream for you to check out.  If you are able to create a decent sized team, it will take on a life of its own.  Keep in mind that the time commitment to be successful at Primerica is substantial.  If you are the type of person who is willing to bust your hump for a few months, or up to a year or two, then Primerica may be for you.

HERE IS MY GIGANTIC DISCLAIMER!  During the whole 9 months I was trying to build my Primerica business, I was bringing in Zero Dollars of additional income!  This added a level of pressure that was not conducive to success in the company.  The opportunity is designed for you to start part-time and eventually go full-time.

Couple on red carpetThat said, if you are the type of person who would like to give it a try, I would definitely recommend using one of the other income producing Side Hustles (possibly driving for Uber & Lyft) to bring in some cash.  This will relieve a lot of pressure to succeed right off the bat, with Primerica as your only income stream.  I only wish I had approached Primerica this way in the first place.  My results might have been different.

Well, there it is.  If you live in the Detroit metro area and would like to learn more about Primerica, please contact Heidi McCarroll from the Troy office at 586-619-0123.  If you live outside the Detroit area, contact the Primerica Main Office at 770-381-1000.  Ask to be put in touch with a Representative in your area.

Hopefully, this article has helped point you in a direction you may not have considered before.  If you have an entrepreneurial spirit and enjoy talking with people, this may be the opportunity you have been waiting for.

If you like what you’re reading on TBPC, please leave a comment and share the website with your friends.  Also, if you would like to be notified of new posts to this blog, please click on the “Follow” button in the lower right corner.  Until next week, may your parachute fully deploy, and may you have a soft landing!

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The Rule of 55

One Option You May Want To Check Out!

By Jerry Lambert

(Author’s Note:  I originally wrote this article not long after I launched TBPC.  However, because of my association with Primerica at that time, I wasn’t able to publish it.  Since I have broken ties with Primerica, I can now post it.  I hope you find it enlightening and enjoyable.  – JL)

You’ve just been laid off from a job you’ve held for over 20 years.  This is no seasonal or temporary layoff.  This is the big “See ya, wouldn’t wanna be ya!” layoff.  You are suddenly a member of The Brown Parachute Club.  Now, what do you do?

Like everyone, you have certain financial responsibilities that were being met by your paycheck.  Just how are you going to meet those obligations now?  If you’re lucky, there will be a Severance Package.  And sure, there’s Unemployment Insurance, but that’s only going to pay you a small fraction of what you were earning.  Also, Unemployment payments will only begin once your Severance payments run out, so no double-dipping.

Golden egg in a nestWell, this dark, horribly ugly cloud, does have a silver lining.  If you have been diligent with your retirement savings and have built a nice little nest egg, that egg can save your bacon.  What I am talking about here is raiding your retirement plan to pay off all of your debt.  I know this flies in the face of everything you have heard about retirement planning.  However, this isn’t retirement planning, it’s financial survival.  It’s just an option you may want to consider.

Full disclosure here.  I am NOT a Financial Advisor and I do NOT hold a Securities License.  That said, I can only tell you what I did.  I decided that paying off all our debt would be a great way to get a fresh start and reduce financial stress during the unemployment period.

Now for the bad news.  Paying off all of your debt by raiding your 401k may seem like a great idea, until you take Mr. Taxman into consideration.  Since the money I wanted to withdraw to pay off our debt had never been taxed, I was in for a cataclysmic shock.  The total amount of money I had to withdraw to pay off all of our debt had over 1/3 of it going to pay taxes!  Yikes!  The government will always get their cut.

IS09B4WQ2After I finished channeling our Founding Fathers, by railing against the injustice of taxes and the tyranny of the crown, I realized it actually could have been a lot worse.  When I was researching whether or not to pull the trigger on this major reallocation of my retirement funds, I came across a little known rule.  The Rule of 55.

Apparently, the phenomenon we are experiencing, being laid off before retirement, is such a prevalent problem the IRS is giving us a break.  They have come up with a rule that allows you to withdraw money from your qualified retirement plan, WITHOUT having to pay the 10% penalty.  After the financial kick-in-the-teeth you just received from paying those taxes, this probably seems like small potatoes.  However, it will keep you from having to cough up thousands of dollars more to Uncle Sam in penalty fees.  Always a good thing.

Now for the second disclaimer of this article.  I recommend that you contact your tax specialist to verify whether you qualify for this exception.  You have to be 55 years old (or older) in the year that you are laid off from your job.  You also qualify if you turn 55 in that year.  For more information about this rule, click on this link to view the IRS Topic 558 document.

It is completely up to you whether you choose to employ this debt reduction option.  I just know that since we have paid off our debt, there is a great relief and peace of mind that comes with knowing we are debt-free.  Our only bills each month now are food, gas, insurance and utilities.

Hopefully, this article has given you something to think about.  As you face the uncertainty of early retirement, it’s nice to know you have some options.

If you like what you’re reading on TBPC, please leave a comment and share the website with your friends. Also, if you would like to be notified of new posts to this blog, please click on the “Follow” button in the lower right corner. Until next week, may your parachute fully deploy, and may you have a soft landing!

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