Insurance

Buying a house is undeniably a major financial decision.  As a result, most people will spend some time researching and understanding the basics of the process before making a purchase: what is the role of agents; what are the transaction costs; how do mortgages brokers and title companies fit into the picture; what type of mortgage makes sense; etc.  

The term financial advisor actually covers a huge number of fairly distinct disciplines.  Financial planning and annuity product sales, for example, are very different fields.

In most instances, the financial planner and the person who handles the annuity purchase are the same.  However, this does not have to be the case.

• Objectivity: Does the information provided to you appear to be in your best interests and be free of any conflicts of interest?  Is the advisor open to discussing products and solutions that may fall outside of their area of focus and expertise if it makes sense for you?  The fiduciary question is a good starting point.

Retail financial advisors are generally compensated through fees, commissions, or a combination of fees and commissions.

Any financial advisor who sells an annuity and receives compensation for that sale is going to be acting as a licensed agent on behalf of the company whose product they are selling.

This financial advisor may be involved in activities that range beyond annuity sales such as fee-based investment advising, but they will be acting as an agent when they sell the annuity.