Posts Tagged ‘financial advisor’
What Can Happen When You Have a Life Insurance Salesman as Financial Advisor
Posted by: Michael Zhuang on: January 19, 2012
In an online forum, a doctor’s wife shared with me her story that should serve as a cautionary tale for all doctors. Her husband had a solo medical practice. They had a “financial advisor” who advised them to put their saving into a $5mm cash value life insurance policy. They believed the product not only [...]
Government Retirees Beware: Your Financial Advisor May Not Be Your Friend
Posted by: Michael Zhuang on: January 14, 2012
I have a client (Let’s call him John) who retired 12 years ago from the government. He had a pension, and he had the option of taking out a lump sum of about $800k or drawing a monthly check of more than $4,400 per month until death. John took his options to his financial advisor [...]
A Balanced Portfolio to Avoid (III): Most Financial Advisors Are Not Fiduciaries!
Posted by: Michael Zhuang on: April 30, 2011
My friend is a savvy businessman. However, like most Americans, he has a misconception: he thinks financial advisors are legally bound to put clients’ interests first. This can not be further from the truth. Everybody and his grandma can be a “financial advisor.” Unlike being a “physician”, there are neither legal requirements no educational qualifications. [...]
Are Financial Advisors Required to Disclose Fees?
Posted by: Michael Zhuang on: April 8, 2011
You may not believe it: the term “financial advisor” is a free title. Anybody can use it; there is no legal requirement, nor educational qualification. In practice, though, generally there are three types of people who use this title: insurance agents, stockbrokers, and registered investment advisors (RIAs). Whether they are required to disclose fees all [...]
America’s Top Financial Advisors: How Are They Made?
Posted by: Michael Zhuang on: March 24, 2011
I must confess: I have fallen short of the standards and requirements to become one of America’s Best Financial Advisors. To be exact, I am $497 short. In March of last year, I received an email with a congratulatory title: “You Have Been Nominated To Be One of America’s Top Advisors.” I eagerly opened the [...]
Do you know your financial advisor?
Posted by: Michael Zhuang on: February 17, 2010
Few people know that there are 2,613,000 financial advisors in the U.S. It is the fifth largest vocation, right after truck drivers and before janitors. Even fewer people know that, unlike attorney and CPA, financial advisor is a free title – there is no uniform legal standard or educational requirement for the title. Nobody will [...]
Does your financial advisor engage in “fee-ing frenzy”?
Posted by: Michael Zhuang on: February 26, 2009
“Avoid the fee-ing frenzy,” says David Swensen. Marion banks at Wachovia. When she needs to rollover her 401(k) into an IRA account, she naturally asks a Wachovia financial advisor for help. He helps her open an account and recommends she buy the Evergreen Asset Allocation Fund (EAAFX). Is there anything wrong with this picture? Plenty! [...]
Author
You may also get his monthly newsletter, or join his Facebook page for regular wealth management insights. Michael's email is info[at]mzcap.com.
