Broker Check


Buyer Beware - Financial Products Sold with Bias

| February 20, 2018

There is no such thing as “one size fits all” when it comes to planning. Think about it. Is your financial situation, family, future, goals, or feelings about risk exactly the same as anyone else? I dare say no. So how is it that any single financial product - whether it is annuities, gold, CDs, stocks, insurance, or anything else – be considered the perfect fit for so many people?

Here’s a secret you already know, but may not think about too often: Everyone has something to sell and everyone makes money. No one can work for free and stay in business for very long.

  • How does an insurance agent make money? They have to sell an annuity or an insurance policy…
  • How does a banker make money? They have to sell their bank products—accounts, CDs, loans…
  • How does a precious metals broker make money? They sell gold or silver or…
  • How does a stock broker make money? They sell stocks, bonds, mutual funds…
  • How does an investment advisor make money? They sell investment management…

I cringe when I hear statements like…I bought this annuity and it didn’t cost me anything or….I bought physical gold and my money is safe or….My broker only believes in buying stocks. Everything else is too expensive.

None of this is entirely true. Annuities cost money somewhere, somehow —how else can they provide you guarantees? It isn’t a non-profit business. Gold is sometimes more volatile than the market, more expensive to own and less marketable. Stocks can be cheap, but the average investor only makes around 2% a year historically because they buy and sell at the wrong times.1.  Maybe not expensive, but costly!

Think about some of the things you may have been advised to do:

  • Guarantee your money. Buy CDs;
  • Buy a lifetime annuity and replenish your estate for your spouse or children with life insurance;
  • Buy gold to avoid the next market downturn;
  • I hate annuities! You only need stocks.

This is the reason we are who we are at Kennedy Financial Services. Dad started in banking in the 70s. Every solution for every customer was a product available at the bank. He then went on to sell and even teach insurance almost every kind of insurance. Every solution in the insurance world was an insurance policy or an annuity. Then moving into the investment arena, the same held true—the answer was always an investment. By 1989, he’d had enough. Dad was tired of not being able to choose what was best for each individual or family he worked with no matter the product.  Everyone is different and deserves a plan in place which allows them to be the most successful they can and live Life on purpose!