Does Your Advisor Have A Conflict Of Interest?

The Principle:

Have you ever felt like your advisor has a conflict of interest? How do you know if something is really right for you? Ever wonder if there is more going on behind the scenes when it comes to what kind of retirement products are being recommended?

(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)

Honest Takes:

Sometimes when you work with the wrong advisor or insurance agent, it can feel like they are selling something to you instead of creating the plan that’s right for you. Unfortunately, they might be!

Northwestern Mutual recently published their full disclosure, as expected by the Certified Financial Planning Board of Ethics. It said it had material conflict of interest that arise based on how they are compensated.

What does that mean for you? Be careful who you decide to work with, especially if they only offer you retirement products, like life insurance from only one company. How can an advisor be doing the best for you if they only recommend Northwestern Mutual products? If you suspect your advisor has a conflict of interest, seek out a second opinion. 

Sadly, this is common among several life insurance companies and agents. If the company incentivizes agents with higher commission rates for certain products, then they will be recommending what pays them higher instead of what is better for you. Watch out for what seems too good to be true and ask a lot of questions if you are unsure.

Listen to the entire episode or click on the timestamps below to hear a specific part.

[0:16] – Northwestern Mutual is highly advertised for its insurance but is now pointing out their conflicts of interest.

[2:45] – The higher rate of commission on permanent life insurance vs. term life insurance, especially when tied to one brand such as Northwestern Mutual.  

[4:57] – Do other companies have conflict of interest this same way?

[6:47] – Brian shares a client story of someone who was pitched a life insurance product that seemed too good to be true.


Today’s Truth:


The Host:

Brian Bowen – Contact