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Do You Know What Questions To Ask Your Advisor?

By May 17, 2022 No Comments

Check out the video below to see the best questions to be asking your financial advisor for a WorryFree Retirement®

 

 

Savers often wonder if an advisor can make commissions AND be a fiduciary. We can clearly answer this question by saying – YES! A fiduciary can make commissions while working in your best interest! The definition of fiduciary is, “of, relating to, or involving a confidence or trust: such as a held or founded in trust or confidence in both a relationship and an obligation to work in another’s best interest.”

The key difference between an agent/advisor and a fiduciary is that fiduciaries are required by law to act in your best interest when suggesting investments and decisions in your retirement planning.

We compiled a list of questions that all Savers should be asking their advisor to ensure retirement planning decisions are being made in their best interest:

1

Will I have access to you after the sale?

- At Tony Walker Financial, you will always have access to Tony and any of our trained fiduciaries along with our full-time service specialists!
- While other agents that represent insurance companies and are licensed to sell you an annuity, by law, they are not obligated to provide you any service after the sale (and they still earn the big commission.)
2

How much do you charge to handle my money and will you do better even when I do not?

- The reality is that no matter if you are doing better or you are not, your advisor will be getting paid. That is why it is so important to know and understand the management fees and any other hidden fees your advisor is charging.
3

If you get paid a commission on the sale of products, what are they and who pays them?

- Commissions are ‘baked into the cake’ (so to speak). Commissions are paid to the advisor directly by the insurance company. They can justify these commissions due to the surrender periods of these contracts. In other words, if the insurance company knows they get to hang onto your money for a long period of time, they’ll pay the commission to the agent for seeking you out and writing that business.
4

Do any of the products you sell contain penalties for early withdrawals?

- Be sure to read the fine print! Annuities often come with early withdrawal (surrender) penalties. This is why it is important that you work with a fiduciary that will clearly explain the products you’re about to invest in. Fiduciaries should help you read the fine print on these products, not gloss over it.
5

Besides yourself, are there other fees charged by others involved in handling my money?

- The fees that you are paying are rarely just management fees. Most investment products also have fees or expenses associated. That is why it is important to know all of the fees and costs of your investments. Ask about other advisors, portfolio managers, expense ratios, etc.
6

Will you answer all of my questions?

- There are no silly questions at Tony Walker Financial, we are happy to help. We are always available to answer any questions you may have and our trained retirement planning specialists are trained within our proprietary WorryFree Retirement® process – so our answers won’t vary.
7

If you are a fiduciary, please provide me with proof of form ADV Part II and Form CRS.

- If they do not have this form, they are NOT a fiduciary.

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