Insurance Agent Vs Financial Advisor

[Larry Tew]

There seems to be a blurring of the lines between "investment adviser" and "financial advisor".

I spent 15 minutes googling stuff like "who can use financial advisor title", "financial advisor/er requirements", etc and basically came up with nothing concrete.

And then you have the "for a small fee" alphabet soup groups that put out their own, such as Registered Financial Consultant (registered with the IARFC, not a regulatory body) and "Qualified Financial Advisor" (you qualify by paying Dearborn the fee to pass a few courses).

Back in the LEAP days we called ourselves "Financial Engineer".

Reminds me of a guy I knew in the 80s who had the designation "JaA, LFB" on his cards. "Just an agent looking for business".

 

[FBN]

How about this designation: PPPPT - Pitch, Probe, Provoke, and Prod Them

or this one: YTS - Yell Tell and Sell

 

[xrac]

How about TGP Top Gun Producer. That's a good title if one can live up to it.

 

[DHK]

That wouldn't impress me as a consumer... Unless I was listing my house with you.

 

[xrac]

That wouldn't impress me as a consumer... Unless I was listing my house with you.

DHK I can understand that!

 

[BrisbaneGuy1]

It definitely depends on your location on which term you use.

 

[NCAgent828]

If you are using the name "financial advisor" and don't offer the proper market investment products and only offer life insurance, do you find that clients are expecting You to be able to also handle money market investments and IRAs?

When I see "financial advisor", and I'm not an expert, but I feel as if they should offer all investment products and not just a couple. Seems like a false claim.

 

[NCAgent828]

What I mean by the above comment is, wouldn't you have the wrong type of clients calling and searching for products you don't have?

 

[Allen Trent]

What I mean by the above comment is, wouldn't you have the wrong type of clients calling and searching for products you don't have?

Some people don't care. If calling themselves something they are not gets them in the door or builds inferred trust with a prospect, that is all they hoped for.

I have never been impressed with some "financial planners" that are really only equities sales reps that are above helping a couple get adequate life insurance protection, an umbrella liabilty policy or getting the boats & recreational vehicles covered for liability. Without those, all those equities will lost in a lawsuit.

I am equally unimpressed with life insurance only reps that promote themselves as holistic planners with a 20 page financially planning document that always ends with WL as the solution to savings, retirement & college savings. Even to the extent they advise clients to discontinue payments to products they don't offer like 401I or 529 college plans so that it frees up the money to pay 10-20k in WL plans. (note- I am owner & believer in WL, just not a fan of those that find it as solution to everything before they meet the prospect).

Be transparent. If all you sell are stocks & mutual funds, call yourself an investment sales rep. If all you offer is WL, say you are a WL expert.

 

[DHK]

If you are using the name "financial advisor" and don't offer the proper market investment products and only offer life insurance, do you find that clients are expecting You to be able to also handle money market investments and IRAs?

When I see "financial advisor", and I'm not an expert, but I feel as if they should offer all investment products and not just a couple. Seems like a false claim.

The term "financial advisor" is about to be regulated by the SEC as only those who hold a series 65 or 66 license.

When it comes to the proposed SEC advice rule, words matter

However, because I use a consulting process, I NEVER market myself as "a life insurance agent". Why? Because that leads with my product solution rather than the problems I solve or the process I use. That doesn't mean that I'm not proud to be a life insurance agent, but I don't talk about my solutions until I'm ready in the proper time to bring them up.

Clients are not the planner. I am. It's funny as to how much people assume people expect from you. Clients don't have organized thinking about finance, insurance, investments, cash flow, budgeting, economics, etc. That's MY job. I ask questions and help people make educated decisions. I bring order to chaos. (Yes, in that way, I'm the borg.) That's my value.

My title: I use my ChFC designation (Chartered Financial Consultant) as my title. I earned it and I use it. It happens to be a Series 65 exempt designation, but I am not registered to offer advice on securities.

Now, if there's a need that I don't handle, I will refer them to someone who is properly licensed and give them an idea of what to ask about when they see that person. I don't give the advice, but I do guide them in something to ask about and then they can ask for proper advice or go through that professional's process.