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massalk OP t1_iuemlvo wrote

Reply to comment by bloodyrude in Do I need to find a new financial advisor? by massalk

I will ask her about the comission. What do you mean if she is not a fee only and a fiduciary?

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manwnomelanin t1_iuflp9a wrote

I wouldnt bother asking tbh. If shes trying to sell it to you, it’s because she gets commission. Ive never met anyone who believes whole life insurance is a good thing besides the people who sell it

(I used to sell it)

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Parking_Goal_3301 t1_iuensw6 wrote

You need to know how she’s getting paid.

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massalk OP t1_iueodma wrote

She is percentage based, not flat fee. And she had me sign a bunch of papers stating that legally, she had to work in my best interest etc. So I am assuming that means she is a fiduciary?

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Parking_Goal_3301 t1_iuepgix wrote

There is absolutely no way I’d be paying someone a percentage for advice like this.

Only flat fee (for example, $600 to create a plan) and a guarantee that they are a fiduciary, meaning they only are working to my benefit not anyone else’s.

A lot of these people get paid twice. By you and then via commission if you buy the product they recommend

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massalk OP t1_iueq0mj wrote

Gotcha. Well, she already invested a good chunk of my money with TD Ameritrade doing like ETFs and stuff. Soooo I wonder if it would be worth it right now stopping my agreement with her and going with someone else. I've already told her not right now for the whole life insurance and she was fine with that.

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Parking_Goal_3301 t1_iueqsw1 wrote

I wouldn’t continue with her. You can buy ETFs very easily on your own.

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massalk OP t1_iueq1tk wrote

Gotcha. Well, she already invested a good chunk of my money with TD Ameritrade doing like ETFs and stuff. Soooo I wonder if it would be worth it right now stopping my agreement with her and going with someone else. I've already told her not right now for the whole life insurance and she was fine with that.

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bloodyrude t1_iuf7384 wrote

If you're not paying her a fee, then how is she getting compensated? If it is commission on insurance or fund purchases, then she may have a conflict of interest.

A fiduciary is someone who must act in your best interest. Not all advisors are.

I have an advisor. I pay him a quarterly fee. He makes no money from my investments and in fact, he just tells me what to do and has no trading access to my accounts. I just provide him account statements each month.

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massalk OP t1_iuf8ei8 wrote

Well, she had me sign papers saying she is legally supposed to act in my best interest. So I guess I could sue her if she didn't. And she gets paid by a percentage. So for one account, it's 2 percent, the other is 1.5 percent.

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