5 Questions to Ask a Financial Planner

Did you know you can sell all or a portion of a life insurance policy, even term insurance?

(3 minute read)

As retirees, few things are as important as the security and well-being of your finances. The money, assets, and investments you’ve spent your life curating are the foundation on which your golden years are built. So, it’s equally important to take the same careful approach when choosing a financial advisor.

Let’s take a look at some of the most vital questions for seniors to ask a financial advisor before hiring them to look after your nest egg.

Are You a Fiduciary?

This is perhaps the most essential question for financial advisors. A fiduciary is a finance term for a professional with a legal obligation to put your best interests first. Some financial advisors may have compensation structures that encourage them to offer investments or solutions that don’t directly benefit you. In fact, some may even end up costing you money. In contrast, a fiduciary advisor has the legal and ethical requirement to propose only the best strategies for managing your wealth.

Fiduciaries should be able to provide a history of totally ethical financial planning, transparency of their compensation structure and incentives, documented satisfaction from previous and current clients, and a complete list of the services they offer for senior clients.

What Are Your Qualifications?

Much like a doctor or attorney, it’s perfectly acceptable to ask that they provide a detailed list of their qualifications. Though their areas of specialization may vary, you should be looking for financial advisors who have the following certifications:

  • Certified Public Accountants
  • Certified Financial Planner
  • Chartered Financial Advisor
  • Chartered Life Underwriter
  • Registered Investment Advisor

Again, the advisor may have some or all of these certifications, but the more they have the better. With the right qualifications, you can rest assured that they’ve been approved by regulatory committees in their industry.

What Experience Do You Have in Retirement Planning?

Would you take a BMW to a mechanic who didn’t have experience in foreign cars? Of course not! The same can be said for choosing a financial advisor. Not all of these professionals are created equal, so you want to be sure that the one you choose has experience in senior wealth management.

Ask them to provide some samples of investment strategies that work for retirees. Additionally, request that they show you case studies or customer service records indicating their work. You might even test them by asking if they provide a prospectus individualized for your needs. Before you sign on with them as a client, it’s vitally important that you feel comfortable with their experience in giving you advice that will help you to prepare for any obstacles and investment opportunities that come with retirement planning.

What Is Your Communication and Transparency Style?

When you have a question about your money, you deserve rapid answers. Ask financial advisors about how often they communicate with clients; this may occur on a weekly or monthly basis, as well as any time there are relevant updates for your account. Inquire about the kind of documentation you’ll be receiving, as well as whether they’re able to meet in-person, over the phone, or via email. Additionally, make sure they can provide online access for you to check on earning reports, balances, investment health, and other related documents you need to feel peace of mind. 

Does a Life Settlement Make Sense for Me?

Selling part or all of an unwanted or unneeded life insurance policy is one of the best options financial advisors can offer. Rather than paying premiums on a policy, you could potentially unlock thousands of dollars in lump sum payouts, all of which can help to create some much-needed liquidity for your retirement plans. Of course, this should only occur if a life settlement makes sense for your current needs and assets, so make sure that they understand those first before they indicate yes or no.

Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.

Leo LaGrotte
Life Settlement Advisors
llagrotte@lsa-llc.com
1-888-849-0887

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