1. As he points out, it is true that the title your financial professional uses may not hold any specific credential behind it. He brings to light that FINRA (Financial Industry Regulatory Authority) states, "...be aware that Financial Analyst, Financial Adviser, Financial Consultant, Financial Planner, Investment Consultant, or Wealth Manager... are generic terms or job titles, and may be used by investment professionals who may not hold any specific credential."
2. Another important point: Annuities are complicated and may be appropriate in a few circumstances, but if you're interested, keep the following in mind: (a) Your representative is a sales person who earns a high commission; (b) Annuities have very high fees; (c) It is hard to get money out of an annuity without paying a fee or fine.
This is why he highlights Senator Elizabeth Warren's 2015 report showing the many conflicts of interest in the annuity industry.
5. Also discussed is the importance of having an adviser that has a "fiduciary" responsibility, along with the new law requiring that your 401k advisor is a fiduciary.4. He addresses the ongoing debate over an actively managed investment strategy versus a low-fee indexed annuity, much like the debate over whether Democrats or Republicans are the better option.
I loved his take on the issues that are prevalent in our industry today. However, as a wise person once told me, "don't throw the baby out with the bathwater."
Do your homework and ask the hard questions of your trusted adviser. If you don't understand what they are saying, head for the door. If this is this something that interests you and you will devote the time to it, then go it alone. If not, may I recommend you find the right "fiduciary" professional to help you.
If you need help, don't hesitate to reach out to us. We are committed to helping you achieve financial security in a changing world.
Your Team at BMM
.....Because Money Matters
Investment advisory services are offered through Berson Money Management, a registered investment adviser offering advisory services in the State of California and in other jurisdictions where exempted. This article was provided by courtesy of Dimensional Fund Advisor LP, an investment advisor registered with the SEC. This communication is not to be directly or indirectly interpreted as a solicitation of investment advisory services to residents of another jurisdiction unless otherwise permitted. The contents of this email and any accompanying documents are confidential and for the sole use of the entity to whom they are addressed. They are not to be copied, quoted, excerpted or distributed without express written permission of the firm. Any other use beyond its author's intent, distribution or copying of the contents of this e‐mail is strictly prohibited. Nothing in this document is intended as legal, accounting, or tax advice, and is for informational purposes only.
