14 questions for all commissioned and fee-based advisorsBlog added by Lew Nason on May 17, 2012
Lew Nason

Lew Nason

Dallas, GA

Joined: October 13, 2006

My Company

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There has been a lot of heated discussions on ProducersWeb.com and other forums about the validity of commission based advisors versus fee-based advisors, along with the appropriateness of fixed annuities and index annuities versus variable annuities, mutual funds and managed accounts.

There is no question that much of what is being includes some valid points. However, are we missing the real problem as it relates to our clients, friends and family and the stock market?

Here are some questions for you to ponder:
  • Should everyone, young or old, have all of their money (savings) invested in the stock market?

  • Does everyone, young or old, need to have some of their money (savings) invested in the stock market?

  • Has everyone who has ever had their money invested in the stock market for 20 or 30
    years or longer made an equivalent 8 percent compounded return or better?

  • Has everyone who has ever had their money invested in the stock market for 20 or 30 years or longer using a commission based or fee-based advisor made an equivalent 8 percent compounded return or better?

  • Can you guarantee me (or even assure me) that if I invest a lump sum in the stock market today that 18 years from now, I’ll have more than four times the money I started with? (That’s an equivalent 8% compounded return.)

  • What percentage of the people who have ever invested their money in the stock market ended up with an equivalent 8 percent compounded or better returns over a 20 year period? 70 percent, 80 percent, 90 percent, 100 percent? How about over a 30-year period?

  • What percentage of the people who invest in the stock market over the next 20 years will end up with an equivalent 8 percent compounded or better returns over a 20-year period? How about over a 30-year period?

  • What percentage of the people who invest in the stock market over the next 20 years will have less than they invested in those 20 years?

  • Is there a commissioned or fee-based advisor out there that will guarantee me (or even assure me) an equivalent 8 percent compounded or better return on my money over a 20-year period? How about over a 30-year period?

  • How liquid is my money? If I need my money in 10 years, can you guarantee (or even assure me) that I’ll have access to all of the money I invested with you? How about in 20 years?

  • What’s going to happen with the stock market as more baby boomers retire and take their money out of the market to provide income?

  • How will income taxes impact my savings and my income?

  • Does everyone need to have some safe money? How much?

  • Is it about how much money I have accumulated, or how much money I get to spend?
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