If you ever sit down with an advisor — me, someone else, anyone — here's a list of questions that will tell you a lot about whether they're the right fit. A good advisor welcomes these questions. A great one has clear answers ready. If someone gets defensive or dodges, that's useful information too.
The questions.
- 1. How are you paid? Commission, a percentage of assets, a flat fee, or some mix. There's no wrong answer, but you should know it.
- 2. What are you licensed to sell? Securities, insurance, or both. An advisor can only recommend what's on their license.
- 3. What standard are you held to? Fiduciary, best-interest, or suitability. Ask them to explain the difference.
- 4. Why this product, for me, instead of the alternatives? The answer should reference your income gap, timeline, and liquidity needs — not just features.
- 5. What are the downsides? Every product has them. If someone can't name one, they either don't know the product or aren't being straight with you.
- 6. Which company is behind this, and why them? You want a financial strength rating and a reason, not a shrug.
- 7. What happens if I change my mind? Surrender schedule, free withdrawal amount, waivers. Get it in writing.
My answers, for the record.
I'm paid by the insurance company when a contract is placed, I hold an insurance license, and I operate under the best-interest standard. I'll tell you the downsides of anything I recommend, I'll name the carrier and why, and the exit terms will be in the contract you review before signing.
Ask every advisor the same seven questions — including me. The answers are the whole picture.
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Author of Indexed Annuity Secrets and founder of Pacific Ridgeway Insurance Solutions in San Diego. Navy veteran. Licensed financial professional, CA #4132743.
Fixed indexed annuities are insurance products, not investments. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. This article is for educational purposes only and is not financial, investment, tax, or insurance advice.