Tune Out the “Annuity Guys”
BY CINDY YOUNGCOURT
As a Certified Financial Planner professional, I have a vested interest in listening to different call-in shows and infomercials on my local radio stations when the topics focus on financial advice. I’m curious to hear what other pros in the business are telling potential clients. Plus, I’m always game to learn something new.
Sometimes, the advice I hear is accurate and sound. Other times, I want to scream at the host or the announcer about the misinformation they’re broadcasting and the one-solution-fits-all approaches they’re pitching to their audience.
A few of the show personalities tend to brag about not being licensed by the securities industry. As if being unlicensed was a badge of honor! What this really means is that they can legally only offer commission-based insurance products to clients. They promise to “educate” investors, but the answer everyone gets—regardless of age, risk tolerance, retirement goals and existing income streams—is a fixed indexed annuity or a combination of several annuities. That’s why I like to call them the “Annuity Guys”.
We focus on people, not products.
We know there’s no real one-solution-fits-all for everybody, because every client’s situation is unique to them. This is why when we first meet with a potential Affinity Wealth Management client, we host a Discovery Meeting where we explore their important relationships, goals, values and interests. We also ask about the other professionals in their lives and how they would ideally like to interact with their financial advisor.
Financial planning is not about selling an insurance product to everyone and their sister. In our view, financial planning is about advisors building long-lasting relationships with clients through trust and understanding. I look at all solutions that are available to me—sometimes an annuity is the best option for a share of a client’s assets, but not in all cases. Ultimately, I want to help clients put a financial plan in place that tuned in with all aspects of their lives, using products and strategies that are suitable for a client’s goals and expectations.
Looking out for your interests
As a Certified Financial Planner, I bring technical expertise in many different types of investments, portfolio strategies and insurance products. I subscribe to a stringent code of ethics that ensures I act as a fiduciary–always making decisions and recommendations that are in my client’s best interests.
I do not make decisions in a silo because each area of your financial life may influence another: your investments affect your tax liability; your life insurance may affect your estate plan, college savings may affect retirement savings; your Social Security decision may affect pension decisions. The list goes on….
These are just some of the areas that a financial planner advises, recommends and reviews with a client. Over time, the recommendations I provide evolve with changes in a client’s financial situation, or changes to tax and estate plan laws, or market and economic conditions.
Who’s serving your best interest?
I know the “Annuity Guys” may sound like they have the answers to every financial dilemma, always with a solution that will surely work for you. As a consumer of financial products and services, it’s in your best interest to find out where their compensation comes from. In most cases, it’s coming from the high fees you’d pay upon purchase of the annuities they’re selling.
I urge everyone who is looking for financial guidance to find a fiduciary who always acts in YOUR best interest. Seek out a financial planning professional who is licensed to recommend securities and other types of investments, not just one insurance product.