Disclaimer Statement Letter

[swieczorek]

Hello everyone. I have a situation & I am asking for your expertise. I have a client who invested $110k Q funds into a FIA less than one year ago. She is 66. She requested from me a 10% free withdrawal last month. I asked her to wait until the end of the first 12 months to capture as much potential gain since the index is in gain territory. She refused. She claims she & her husband have too many bills to pay.

Now, three weeks later, she is asking to WD $26k because her & her husband need surgeries. Personally, I think there's more to the story. I suspect gambling debts. I want her to sign a "Refuse to accept financial advice disclaimer" form before I submit a WD form. Does anybody have a sample disclaimer I can use?
Thank you,
Scott

 

[Golfnut2112]

No,I would not have them sign a form but I would have a very serious talk with them. You have to be very careful not to piss them off because they are losing a lot of money by withdrawing the $26,000 and you don’t want them claiming the annuity was unsuitable for them. I would definitely transfer their 10% free amount going forward into a fee based account every year to free up some money.

 

[DHK]

And document every conversation in their file.

 

[Golfnut2112]

And document every conversation in their file.

Absolutely

 

[DHK]

Dealt with this kind of situation before. Make sure you also document the exact surrender charge dollar amount and that you disclosed this to them prior to making the withdrawal.

We're not their parents, but we can disclose the consequences of their decisions and document it in our files.

I doubt they would come back and say that the annuity was unsuitable... but if your files are complete when you sold it, and complete with all the conversations you had prior to withdrawals... you should be fine.

 

[Golfnut2112]

I doubt it too but I definitely would handle them with kid gloves. It sounds like they are having liquidity issues. Most of my business are pension rollovers and most people I deal with have very little money outside of their 401k. I did one last November and the guy called needing $40,000 for a new car which was not a problem because I split the money between an annuity and a fee based account. You never know what may come up.​