Using Modern Annuity Solutions in Retirement Portfolios with David Lau

In today’s episode, Jack talks with David Lau, Founder and CEO of DPL Financial Partners. David has been a pioneer in creating products, platforms, and distribution systems that help RIAs implement appropriate annuity products into household portfolios. David’s wealth of experience goes all the way back to his first job as CMO at Telebank, the first internet bank.

David talks with Jack about the impact of telemarketing on RIAs, fee-based vs. commission-based structures, and the integration of low-cost insurance and annuity products in portfolios.

Key Takeaways

• [01:40] - How David has been a pioneer in disrupting distribution costs.
• [05:27] - How the cost structure of commission-free annuities works.
• [08:32] - How DPL drove significant change in the industry.
• [10:40] - Why you must adapt your strategy to the particulars of the market.
• [14:16] - How DPL took downturns and translated them into advances in the platform.
• [16:12] - Why “concierge service” is great for the RIAs.
• [19:52] - How annuities impact the four major categories of insurance.
• [23:22] - David’s insights on a fee-based and commission-based structure.
• [27:19] - How risk mitigation works within portfolios.

Quotes

[03:06] - “The question around annuities was, how do you deliver value? You look at the way annuities are sold and they're so expensive. You're paying massive commissions and you have very high internal distribution costs in terms of wholesaling. The model for distributing annuities is archaic.” - David Lau

[12:12] - “RIAs are never going to have some wholesaler from some insurance company coming into their office every month. There's just no point in it. So I very quickly said we need to change this model to kind of a marketing-driven model. We'll drive awareness through marketing, we'll centralize wholesaling. We’ll have a centralized wholesaling force that basically deals with RIAs through the telephone. It made sense for us, but it also made sense for the market” - David Lau

[21:17] - “DPL was designed to be a fee-based, no-load, commission-free insurance marketplace. For the RIA, the notion is now that you’re more than just an asset manager, you’re a wealth manager, and you’re addressing this broad spectrum of your client’s financial life. It’s hard to do that if you can’t use insurance.” - David Lau

Links 

• David Lau on LinkedIn
• DPL Financial Partners
• Telebank
• E-trade
• Charles Schwab
• Salesforce
• CNO Financial Group (formerly Conseco, Inc.)
• Nationwide Advisory Solutions (formerly Jefferson National Life Insurance Company)
• BlackRock

Connect with our hosts

• LifeYield
• Jack Sharry on LinkedIn
• Jack Sharry on Twitter

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