Anyone can call himself/herself an advisor, so make sure you are getting objective advice and not a sales pitch disguised as advice. Insurance company reps who come to your school may be thinking more about the commission they could earn by selling you an insurance product than about recommending the best savings vehicle for you.
If you are working with an advisor or thinking about doing so, ask him or her to put the answers to these questions in writing for you:
Are you acting in a fiduciary capacity (in other words, are you legally and ethically required to make a recommendation in my best interests)? If not, why not?
How are you paid? Will you be compensated for selling me this product? Please detail all fees and surrender charges associated with this product, including who receives them.
Why is this product the best choice for me?
Don’t be sold, be informed!
Learn more about making the most of your 403(b) or 457 plan at CTAinvest.org, first-place winner for ongoing education-public in Pension & Investment’s 2013 Eddy Awards.
