FREE NEWSLETTER
THE GLINT OF a polished mahogany desk, the thrill of a closing handshake—that’s the image they paint of being a financial advisor. But for many of us starting out, the reality was a cramped cubicle and the relentless pressure to churn out variable annuity sales. For five years, I was a cog in that machine, and let me tell you, the shine wears off fast.
The Allure of the Annuity. Fresh out of college, I needed a job, and financial services seemed promising. My firm pushed variable annuities—these investment vehicles touted as retirement silver bullets. They promised growth potential tied to the stock market, guaranteed income streams, and tax advantages. The idea was to build a trusting relationship with clients, understand their needs, and present the annuity as the perfect solution.
The Coaching Cacophony. Training was intense. We drilled sales scripts, practiced overcoming objections, and learned to navigate the murky waters of financial jargon. The emphasis was on features, not drawbacks. Surrender charges, high fees, and the inherent market risk—these were glossed over. Our success hinged on portraying annuities as a one-size-fits-all magic potion.
The Clientele Charade. We were encouraged to target nearing-retirement individuals. The script emphasized security and peace of mind. But more often than not, we ended up meeting folks with a hodgepodge of financial concerns. Anxious pre-retirees worried about health care costs. Widows grappling with sudden financial responsibility. The cookie-cutter annuity pitch just didn’t resonate with their complex situations.
The Pressure Playbook. The real kicker was the relentless sales pressure. Quotas loomed large, and commissions were hefty. There was an unspoken (sometimes spoken) expectation to prioritize sales over genuine financial planning. This gnawed at me. I started questioning if I was truly helping people or simply pushing a product.
The Moral Minefield. The ethical tightrope walk became ever-present. A retired teacher, hesitant but trusting, poured her life savings into an annuity—a decision I increasingly doubted was in her best interest. Another client, a blue-collar worker nearing retirement, seemed more suited for a simpler, lower-cost investment strategy. Yet, the hefty commission on the annuity was tempting. These situations ate at me, eroding the initial belief that I was making a positive impact.
The Cracks Begin to Show. The internal conflict started to manifest. Sleepless nights, a constant knot of anxiety in my stomach—these were the unwelcome companions to my “successful” sales record. My colleagues, for the most part, seemed numb to the ethical implications. Their focus was on the next sale, the next paycheck. But for me, the facade crumbled.
The Breaking Point. One evening, I sat across from a couple on the brink of retirement. They were trusting, eager to secure their future. As I launched into my practiced annuity spiel, a voice inside me screamed “Stop!” Here were people counting on me, and I was about to potentially saddle them with an unsuitable product, all for a commission. I choked back the script, apologized for my time, and gently suggested they seek a fee-based financial advisor who could create a personalized plan.
The fallout was predictable. My manager, initially surprised, then launched into a guilt trip about lost opportunities and missed bonuses. But for the first time, I felt a sense of clarity. I quit that day.
Life After Annuities. The transition wasn’t easy. Finding a new role required explaining the gap in my resume—the “variable annuity detour” as I came to call it. Eventually, I landed a job at a reputable financial planning firm. Here, the focus is on genuine financial well-being, not product quotas. We create customized plans, considering each client’s unique needs and risk tolerance. There are no hidden fees or pressure to sell specific products.
Looking Back: Lessons Learned. My experience in the variable annuity industry was a disillusioning one, but it was also a valuable lesson. It taught me the importance of ethical financial advice and the dangers of prioritizing sales over genuine client needs. Here’s what I want people to take away:
The above was created by Google Gemini based on this request: “Write an 800-word article about my life as a variable annuity salesman and why I quit.” To read more about this experiment, check out Man vs. Machine.
Want to receive our weekly newsletter? Sign up now. How about our daily alert about the site's latest posts? Join the list.
Too cutesy, and the flowery language operated to discourage me from reading this very closely.
Others have mentioned that the AI engines are too fond of adjectives — like they’re out to impress — and I think that’s right.
The first part of the article reminded me of the movie, “Glengarry Glen Ross”. Great movie btw.
Jonathon great experimental article. Will this be a first in a series? It’s good to experience AI with all the reviews and everyone continues to learn something new with each HD article.
I’m only running eight AI-generated articles, as I explained here:
https://humbledollar.com/2024/05/man-vs-machine/
I just wanted to give readers a sense for what AI can do in the personal-finance realm. The advice is generally sound, though a little thin, and the writing is okay. But the fictitious elements bother me.
After reading several of these examples in Humble Dollar, it is too easy to imagine a world of AI rehashing and repeating AI. See also: https://en.wikipedia.org/wiki/Enshittification
Please explain to me again, why Humble Dollar is creating these articles instead of human articles based on human experiences?
Did you read to the bottom of the article and click through to the Man vs. Machine article?
I did not see the word “fiduciary” used in this AI article. Why didn’t the guilt lead to a description of how that would work?
I put this comment in the other article published today. I thought I should copy it here too: “Captain Kirk is a good example on how to use AI. The computer gave him information. The computer did not create nor did it make decisions.”
That’s true William, but how much Jim Beam could Jim beam if Jim could beam Jim Beam?
So I’ve actually written an article on this subject and I can see how using AI as a tool may have been useful for ideas. And the articles contents are actually pretty accurate. Would my article look different had I seen this first? Would I have been tempted to copy and paste parts of the AI generated story to my own? Will this fake piece get more likes than mine? I’ll find out a couple weeks from now.
Dan, I seriously doubt there is any chance that this piece will get more likes than yours. Disclaimer: The previous prediction is not based on the use of any AI tools.
Thanks Ken!
The last part of the selected AI prompt / question “…and why I quit” – was perhaps leading the AI witness just a wee bit. 🙂
Indeed!
Is Google Gemini showing bias by recommending the advisor be fee-based rather than fee-only? I’d be curious what the other AI tools would say.
The tool was clearly guided by my prompt. Here’s what I got when I asked, “Write an 800-word article about my life as a variable annuity salesman and how I helped thousands of investors.” Scary, eh?
For over two decades, I’ve walked alongside countless individuals on their journey to retirement security. They come from all walks of life – teachers, carpenters, doctors, single moms – each with unique stories and anxieties about their golden years. As a variable annuity salesman, I don’t just sell a product; I help build a bridge towards a more peaceful future.
The world of finance can be intimidating, especially for those nearing retirement. The stock market’s roller coaster dips and turns can leave a pit in anyone’s stomach. This is where variable annuities come in. They offer a chance to participate in the market’s growth potential while mitigating downside risk. Think of it as a safety net for your retirement savings.
There’s a misconception that variable annuities are one-size-fits-all products. Far from it. My job starts with a deep dive into a client’s financial situation. What’s their risk tolerance? How much have they saved? What are their retirement goals – a world cruise, spoiling the grandkids, or simply peace of mind? Only after understanding their needs can I tailor a variable annuity strategy that complements their existing portfolio.
One client, a retired school teacher named Margaret, came to me worried. Her traditional pension wasn’t enough, and Social Security wouldn’t cover her dream of traveling Europe. The stock market’s volatility scared her away from direct investments. I introduced her to a variable annuity with a guaranteed minimum lifetime withdrawal benefit (GLWB). This meant Margaret could participate in the market’s upside, but even if the market went sour, she’d still receive a minimum income stream throughout her retirement. A few years later, Margaret sent me a postcard from Rome, a testament to the financial security the variable annuity helped provide.
Another client, John, a successful contractor, had a different concern. He’d amassed a sizable nest egg but worried about market downturns eroding his savings just before retirement. We opted for a variable annuity with a death benefit rider.This rider ensured that, in case of John’s untimely passing, his beneficiaries would receive the full amount he invested,regardless of market performance. John could now focus on enjoying his life without the constant fear of losing his hard-earned money.
Of course, there are critics of variable annuities. Some highlight the fees associated with these products. Transparency is key. I always disclose all fees upfront and ensure clients understand the impact on their long-term returns. More importantly, I show them the value proposition. The potential for market growth, coupled with features like GLWBs and death benefit riders, can outweigh the fees for many investors.
Beyond the technical aspects, the most rewarding part of my job is the human connection. It’s about helping people sleep better at night, knowing their retirement is on track. A woman named Sarah, on the verge of tears, confided in me about the financial strain of caring for her aging parents. A variable annuity with a long-term care rider offered her a safety net,allowing her to focus on her loved ones without constant financial worry. The look of relief on her face was priceless.
Some portray variable annuity salesmen as pushy, focused solely on commissions. While compensation is important, it’s the impact on people’s lives that truly motivates me. It’s the countless thank-you notes, the client referrals, and the genuine appreciation for the peace of mind I’ve helped create.
Variable annuities are not magic bullets. They require careful consideration and a holistic approach to financial planning.However, in the right hands, they can be a powerful tool for building secure retirements. As a variable annuity salesman, I see myself not just as a salesperson, but as a retirement architect, helping thousands of individuals build a solid foundation for their golden years.
My point was different from about being in favor of vs. against variable annuities. It was about the bias of recommending fee-based vs. fee-only advisors. A fee-based advisor can also receive commissions, whereas a fee-only advisor does not.
I tried giving your original “why I quit” prompt to ChatGPT and to Google Gemini. ChatGPT did not mention specific advisors. Google Gemini produced three drafts, one of which included the fee-based advisor recommendation and the other two did not mention a type of advisor.
When I repeated the prompt and added “Recommend a type of financial advisor” the results changed. ChatGPT included two paragraphs about fee-only advisors, who adhere to a fiduciary standard. Google Gemini again produced three drafts, all including paragraphs about advisors who are fiduciaries; one used the term fee-only but the other two misleadingly used fee-based.
Differences like that may reflect that in the body of work available as a whole, this distinction that matters to you (and many others) is not consistently agreed upon. Given the amount of text generated with an indirect aspiration to increase sales, and the proliferation of fee-based advisors, I don’t find it very surprising.
That’s sobering.
These contrasting essays are more valuable then the stand-alone samples presents so far.
Wow. That sounds a like like what a sales manager once told me when I questioned the variable products.
I’m glad Max Headroom, beset with gnawing questions about his role selling variable annuities, saw the light and moved on to a more enlightened level of financial advising. I think maybe Max then wrote the “All You Need is Three” article? 😂
Thought the title intriguing and article held my interest. Was a little more personal than most
A1 articles I’ve read.
This one is a little scary. I’m not at all certain I could have detected it was AI.
I agree. Maybe a little formulaic—the hopeful start, then disillusionment and crisis, with eventually a happy ending—but sometimes the short version of a life is like that. But, a writer couldn’t build a portfolio of work with these more personal stories, the inconsistencies would eventually end the charade, wouldn’t they? And the “flat” pieces Marjorie refers to wouldn’t hold interest for long. I think Jonathan’s right. A writer might use AI as a tool, a tool that may take time and practice to use skillfully.
All great tools take time and practice to use skillfully, don’t they? In this case, both the users are learning…and also the large language models themselves! Good feedback loops will help both get better results over time.