I had a Discovery Call on Monday with a woman who’s been working with a Northwestern Mutual “Financial Advisor”.
It’s no surprise that the financial advisor…err…insurance salesperson sold her a whole life insurance policy at the ripe old age of 29. (She’s neither married nor has kids yet).
But the insurance salesperson was also managing her money. She was being charged a 1.5% AUM fee AND the salesperson was using C share mutual funds.
C shares are the most expensive kind with an average expense ratio of 1%+. The REASON they are so expensive is because they also pay the advisor the highest commission (in the form of 12b-1 fees).
That brings the advisor’s annual fee structure to 2.5%!!!
But that’s not the kicker.
The kicker is that the reason she scheduled a Discovery Call with me in the first place is because her financial advisor NEVER met with her.
Not even the lip-service “annual review”.
Hearing stories like this absolutely infuriates me.
I don’t know how “advisors” like that sleep at night.
At any rate, if that story sounds familiar don’t walk – RUN!!!!
Run very, very far away and find an independent, fee-only financial planner.
