Welcome to the 'No-Guilt' blog!
People come to here because they want to build financial confidence and take meaningful action. We provide the context for those things that affect your financial health. Our goal is to help you live in the 'No-Guilt Zone'.
U.S. households generally agree they need a financial plan to achieve long-term success and security. However, too many households—including those with engineers and scientists—hold beliefs about financial planners that make them hesitant to seek out or work with a qualified financial planner.
Here are eight truths to dispel the myths about “real” financial planners.
Myth 1: Financial planners are the same as stockbrokers, insurance agents and other financial salespeople.
Last time, we looked at lifetime earning power and how the average amount of life insurance protection of $166,800 would cover just over one and half years of income for someone earning $100,000 a year.
Coping with the loss of a loved one is difficult enough in itself. When you compound the death without enough financial resources…whew! That’s tough.
You're working your tail off to build a solid financial foundation for family. You now have some home equity, personal savings, investment and retirement accounts. You may even own an investment property.
You’re doing everything in your power to create a secure and comfortable lifestyle for yourself and family.
There is a lot of confusion about how different types of financial “professionals” work. On one hand, you have brokers or registered representatives (RR) who work for broker-dealers and insurance agents who represent insurance companies. On the other, you have investment advisors (IAR) who work for Registered Investment Advisors (RIA). While people use the generic term financial advisorto describe all three, there is a substantive and legal difference among them.
(The term financial advisor did not exist until the late 1990s and was a deliberate and brilliant marketing tactic to recast product sales people (i.e., brokers and agents) in a more positive light and blur the distinction among RR, agents and IARs). Suitability or Fiduciary?
RR’s and insurance agents work on the suitability standard. This means that as long as they get information about your net worth, determine how much risk you can handle and verify that you are financially qualified, he or she can recommend a product that is not necessarily in your best interest. You bear all the risk. Suitability is essentially a “buyer beware” standard filled with conflicts of interests.