Words of Wisdom
When Hiring or Replacing a Financial Advisor, complete this Top Ten Checklist, ensuring the Advisor is:
Required to follow the Fiduciary Rule (putting your interests ahead of their own)
Fully transparent with their fees and commissions
Honest and forthright in disclosing HOW they make their money
A CERTIFIED FINANCIAL PLANNER™
Not constantly "selling" you stuff
Ensuring you UNDERSTAND your investments
KEEPING CONTROL of your $$$ in YOUR HANDS - don't turn it over to some insurance company!
Experienced in extended periods of market volatility and major events affecting market conditions
Meeting your communication expectations
NOT getting kickbacks or commissions off of investments they put you in (this creates bias!)
Stay AWAKE and AWARE - it's YOUR MONEY!
Annuities
TKM Financial Services advises extreme caution when considering annuities – a very complex financial product.
Annuity Products…
Only guarantee the income stream; the annuity itself is not guaranteed as the safety of the annuity is based upon the financial strength of the insurance company providing the annuity.
Capture your hard-earned wealth; once the annuity is “annuitized,” access to the principal is very limited and often, eliminated creating illiquidity (you lose control of your dollars).
Pay financial advisors very high commissions (up to 10%) and a very high trailer payout (from 1% to 4% of the value of the annuity).
Are very expensive (fees include subaccount fund fees, mortality charges, administrative fees, etc.).
Have HEFTY surrender charges (why should you pay a “charge” to get your money if your financial situation changes?).
“I like to deal with people where I feel a one-page contract would do the job,” he said. “If I have to have 50 pages to protect me against the guy I’m dealing with, I’ll always wonder if I needed 51.”
“No agent selling these or investors buying these has the foggiest idea of how these work,”
“Since starting in wealth management in January 1993, having worked in all capacities of the business in my career and touching over $800 million via trust, estate and retirement plan administration and investment management, I have NEVER had one client say, ‘I am so glad I bought an annuity.”