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Conflict of Interest

A conflict of interest arises when one party has the potential capacity to undermine what is in the best interest of the other party. In other words, the interests and objectives of one party to an agreement, transaction or other relationship are at odds with the counterparty.

Annuity Criticisms Often Boil-Down to Control of Assets

Annuity criticisms are a dime-a-dozen. 

The majority of financial advisors seem to have some issue with annuities, consumer perception is generally terrible and the financial media often appears to provide a reflection and reinforcement of prevailing sentiment.

There is a case to be made for “control of assets” as the common denominator for both the consumer and financial advisor perspectives.

Control of assets basically refers to the fact that annuities involve handing over money to an insurance company. 

Rule Allowing Financial Advisors to Provide Advice to 401k Customers is Suspended

The Department of Labor has suspended a Bush Administration rule that would have allowed financial advisors to provide investment advice to their 401k customers.

The Pension and Protection Act of 2006 contains a provision that allows financial advisors who manage company 401k plans to provide investment guidance to the 401k plan participants.

An Interview with Retirement Planning Expert Henry Hebeler

 

Henry "Bud" Hebeler is a former Boeing executive who has been running a retirement planning company for over twenty years.

 

His company, Analyze Now (www.analyzenow.com), provides information and tools that help individuals with retirement planning.  The company has helped thousands of people and is well respected among journalists and industry observers.

Watch-Out for Any Annuity Pitch that is Tied to a Reverse Mortgage

The cross-selling of annuities and reverse mortgages is problematic to say the least.  There is clear potential for conflict of interest and pitfalls for elderly customers.

Consumers should be on the look-out for any sales pitch that ties the two products together.

There are, in fact, laws that define the need for separation of the two products during the marketing and sales process:

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