• Darryl Rosen

Does Your Advisor Operate With Independence?

When it comes suggesting financial services and solutions, there is no such thing as 100% independence!


Somebody had to say it! The truth is that everyone has restrictions. I have restrictions.I can’t be a male model. (Too short). Seriously, though, as a retirement strategist, there is no such thing as an advisor scanning the landscape and having every last investment option available to him or her. For example, I can’t sell most Variable Annuities. Also, I don’t have alternative investments at my disposal. (Private placements, real estate, bitcoin…) Further, if a carrier like Northwestern Mutual has a crazy good solution, it’s not available to me.


I also believe it’s self-serving to universally criticize the products or services one doesn’t sell – there are circumstances where every product/service would not be appropriate.


The largest players in financial services are broker-dealers. Names like Fidelity, Schwab, Wells Fargo, Edward Jones, Ameriprise & Voya among many others. Many broker-dealers have restrictions. Many frown on insurance solutions like building wealth with the use of cash value life insurance or income planning through the use of annuities. They have their reasons. Some would prefer to have your assets to manage because of the yearly fees. Others are so big that the thought of training their people on additional lines of business is unappetizing. If they offer these solutions, there aren’t many options to choose from. It helps to know the restrictions.


Questions to ask any potential advisor:

  • Are you limited in the types of products and services you can offer? If the answer is yes…

  • What are you prevented from suggesting to me?

  • Based upon limits your limits, what circumstances/problems can or cannot be solved or addressed?

  • What does it mean to be compensated based upon transaction vs. fixed fee or percent of assets?

  • What investment solutions are at your disposal?

Everybody is conflicted in some way. Every financial professional's hands are tied in some way. Your job as a consumer is to know your advisor's restrictions. The point is if he or she says..."That (insert any financial solution) is a bad idea, you MUST know whether it's a bad idea because he or she is prohibited from considering it for you...or truly is just and awful idea.


As you know, I believe you CANNOT have SECURiMENT without the help of an insurance company. I say that in class and when we meet. I say it all the time. Even to my sons who don’t care what I say. To that I have set myself up to be a independent as humanly possible. Call it 99.9432432342% independent. Yes, pretty close to 100%, but not all the way there. If you are receiving guidance from someone who is overly restricted, then you aren’t getting the whole picture.


That's just the way it works!

 
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Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and Rose Advisory Group are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a monthly fee for assets under management while insurance products pay a commission, which may result in a conflict of interest regarding compensation. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by BCM.  Index or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.