The Department of Labor (DOL) was in the news a few years ago with a push to require fiduciary standards for annuity insurance agents working with tax qualified accounts like 401Ks, IRAs, 403Bs, etc. This may have confused some investors looking for a true fiduciary financial planner who is series 65 licensed as a Registered Investment Adviser to assist with holistic balanced financial planning as a fiduciary for their retirement. The DOL rule also would not have extended to retirement savings that are not in tax qualified accounts, possibly causing further confusion!

Intuitively, most of us have a negative connotation with a salesperson/agent selling us an investment product or an insurance annuity – using their persuasive pressure “supposedly for our retirement’s benefit” verses being… [continued below video]

[continued] …fairly advised and informed of investment or annuity pros and cons in a no-pressure or hype planning process by a fiduciary financial planner who advises you with a balanced and holistic planning approach on such important retirement decisions.

Caveat Emptor, the Latin version of “buyer beware”, is the watchword for knowing who you are working with when it comes to choosing annuities or planning your retirement. Most folks are not aware that the odds are about *ten to one in favor of ending up with a sales rep or agent by default, rather than consciously choosing “a preferred true fiduciary planner” from the broad field of financial service providers.

In today’s marketplace, many sales agents brand themselves with descriptions like Retirement Specialists, Retirement Planners, Retirement Experts, Annuity Specialists, etc. Rarely, if ever, based on our field observations, does an annuity sales agent say frankly that they are primarily an annuity salesperson!

This can be very confusing to investors who want fair, honest advice from someone that is licensed as a true financial planner. So, how do you tell one from the other? Simple. You must ask the right questions and get your answers in writing, an email or snail-mail will usually suffice.

What to ask:

1. Are you a Fiduciary Financial Planner?  Answer – Yes
2. What licensing do you have?  Answer – Series 65 is a must, others are a plus.
3. Are you licensed to sell annuities?  Answer – Yes
4. Have you earned any financial credentials?  Answer – Yes
5. If so, what are their credentials?  Answer – CFP or RICP (may help)
6. How many years of experience do you have?  Answer – More’s better
7. Are you willing to provide client references?  Answer – Yes
8. Will you put your answers in writing for me?  Answer – Yes

Advisors licensed only as a sales oriented securities broker, registered rep, or insurance agent, are not fiduciary financial planners! Most work on a much lower legal standard of Suitability which does not require full disclosure and only requires a suitable product sale, NOT what’s best for their client!

Fiduciary Financial Planners by law are subject to the highest standard of financial planning and investment advice accountability. Hence, clients of a fiduciary planner will know that their advisor is required legally to work strictly for their highest benefit.

The fiduciary legal standard is also referred to as the “prudent man rule”, which in simple terms means that by licensing as a Series 65 Investment Advisor and Financial Planner, they must give their clients the best advice they can based on all the knowledge they possess and information they have access to – the same way they would advise and help close friends or family members.

Fiduciaries also must disclose all known conflicts of interest that could potentially bias their advice, such as – selling financial products that pay them higher commissions with higher fees or costs, and their lack of investment product availability for their clients’ needs, just to name a few.

Videos are educational and conceptual only and not a solicitation. They are not to be considered investment, insurance, tax or legal advice. It is recommended that you work with licensed professionals for individualized advice before making any important financial decisions. Annuities are not FDIC insured and their guarantees are based on the claims paying ability of the issuing insurance company. State Guarantee Associations, while offering specific protections, are not the same as FDIC insurance.