Trust: Use the Ronald Reagan Approach

By |2020-04-15T21:22:16+00:00April 14th, 2019|General Business, Retirement Planning|

Trust but verify

 

The other night I saw on the news about the lawsuit between a car purchaser and the car manufacturer.  The car company had placed on the window the disclosure of what could be expected mileage wise.  The statement was simple; 49 miles per gallon average on the highway and 43 mpg for city driving.

The lawsuit was based on an argument that the car purchaser only received a lesser result.

How about dealing with financial professionals?  Many sales pitches begin verbally, and as the broker or agent explains the benefits of their product, it can begin to sound way too good.

 

Here are a few tips to protect you:

  • Get all sales pitches in writing.  Make certain the company providing the security has enclosed all disclosures, including the prospectus. Read and ask questions about the prospectus.
  • Ask about any ongoing fees and expenses.  If the offering is a mutual fund, ask about loads, expense ratio, 12 b-1 fees, and the class of the mutual fund.  A, B. C class all can have different fee structures.
  • Ask for help from a 3rd party if you do not completely understand the prospectus.
  • If the offering is an insurance product, ask for a product brochure and the phone number of the insurance company customer service system.  Call the home office if you do not completely understand the product.
  • Never make a decision immediately, take your time, and get a second opinion. Make sure the offering will help you achieve your goals.
  • And use the Ronald Reagan approach: Trust but verify.

     

Trustworthiness is earned and should never be automatically granted.

 

  • This field is for validation purposes and should be left unchanged.

Premium gift for you for registering for my newsletter

I am a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money.

Interested in additional information? Register for my FREE bi-monthly newsletter, "Layin' it on the line." It contains information that other people have found beneficial. I will never sell your information.

For registering, I have a Premium Gift for you.

Our 15th edition, “Safe Money Book” a $20 value

77,000 copies in circulation

Learn the basics of a Safe Money approach to investing.

And it is FREE with your "Layin' it on the line" newsletter

About the Author:

Bill Broich is a well-known annuity expert with over 30 years of experience. He has written hundreds of articles on annuities and other financial topics, and has been a featured commentator on TV, Radio and the Internet.

Toll-Free: (360) 701-6209 | GVA, Annuity.com | Email: bbroich@msn.com