I’m 23 years old. No kids, wife or mortgage. I’ve inherited $400,000 in assets from my moms side of the family and while likely inherit more upon the death of my grandmother and mother. I’ve “inherited” my family’s financial advisor along with the assets. A couple of years ago, this guy had me sign up for a $500,000 whole life insurance policy that I pay a $6000 yearly premium on. At the time, I thought it was a bit strange that that I was signing up for life insurance at such a young age but I trusted this guy to handle my finances in my best interest as he had been my family’s guy for years.
Now that I’m a little bit older and more capable of thinking for my self, I’m beginning to suspect I’m being ripped off. According to the FINRA website, this financial advisor is registered as both an investment advisor and a broker. From what I’ve been able to gather online, this means that he doesn’t have a legal obligation to act in a fiduciary capacity and that he likely makes commission off of me signing up for this insurance policy. When I ask why life insurance is a good idea, he mentions the tax advantage benefit and “the maintenance of the value of wealth and estate planning” and “to make sure wealth is passed down from generation to generation.” I know that this sub is pretty adamantly against whole life insurance policies, but is there some validity to them for someone who has inherited significant amounts of wealth or am I being duped by someone who has their own interests in mind? I’ve set up a meeting with him soon and am wondering how I should address my concerns.
Submitted July 08, 2019 at 08:58PM by guard091 https://ift.tt/2NHhgMs
