to my sister. She's a year younger and married. Her husband recently changed jobs and their term insurance was up. So they scheduled an appointment with a friend of a friend.
Long story short the agent tried to sell them a variable annuity for her DH to roll his 401k into. The fund had an expense ratio of 1.75%!! He also suggested whole life insurance again.
She called me before and after the meeting. I gave her some questions to ask. Turns out based on my advise she was ticked at the agent for seeming to not take their best interests to heart.
My suggestion was for her husband to simply roll the 401k over to Fidelity IRA where she currently has hers. The expense ratios are significantly less and there are no surrender charges. The don't need the death benefit that the annuity provides because they have term insurance and no kids.
So for now they are leaving their term the same and rolling the 401k to Fidelity. She really wants to start learning more about basic investing decisions. She joked that she should check out some kind of book for dummies. So, today I picked up Personal Finance for Dummies at the library to see what I think about it's basic information.
It's nice that she feels comfortable enough to call me. I do have more experience since I worked at a mutual fund company for a time and was registered with my series 6 license.
How many of you use a professional advisor?
I'm a Financial Advisor..
June 11th, 2008 at 09:19 pm
June 11th, 2008 at 10:01 pm 1213218076
June 12th, 2008 at 12:31 am 1213227099