The team begins the podcast by discussing how to go about hiring the right financial advisor. There is a low barrier to enter the financial advising industry, and it is important to do diligent research when searching for a firm or financial advisor.
Why are Annuity Sales Bad?
Annuity sales are not something we recommend. Those who sell annuities guarantee that the investor won’t lose, but there is no guarantee that the investor will make anything either. Those who sell annuities bank on individual investor’s fear or pain of losing. Annuity returns are not near as much as returns from traditional investing. Annuity salespeople benefit and make money by selling annuities.
What to Ask a Prospective Financial Advisor
Do you have relationships with firms that you earn revenue from that you might use to make recommendations to a prospective client?
Are you independent?
Do you custody assets or are assets held at another firm?
Compensation is an important part of the relationship between the financial advisor and the client. Firms are typically fee-only or commission based. Wiser Wealth Management, for example, is a fee-only, fiduciary firm. A fee-only financial planner is paid by a set fee or a percentage of the assets under management. A financial planner that is commission based (or fee-based) is compensated from commissions made through financial transactions and by using products.
BrokerCheck is an excellent resource when researching financial advisors.
Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). As a registered investment advisor, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment advisor’s registration.
Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.
To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.
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