Choosing a suitable vehicle for your retirement is not an easy task. With the numerous choices, which product is better suited for your needs? On one hand, you might want the guarantee of principal and past earnings. On the other hand, many prefer the potential of higher returns by being linked to the equity markets.

Suitability is a low bar

There is a difference between suitability and fiduciary standards.  The suitability standard is about just getting over a bar, will this meet the basic needs?  It is not about what is best for the client.  Frankly, it is not sold from the perspective of the client.  Suitability is about protecting the advisor and the firm or insurance the advisor is representing.

Fiduciary standards are all about the client.  Is this product or investment in the *best* interest of the client – period.

Suitability allows the advisor to have the product of the day.  Said differently, is this product paying the most possible to the advisor and some how still getting the job done for the client?

When working with an advisor please ask them this question – “I see you have selected a great product/solution.  Would you please show me the other two products that you considered before choosing this one?”

Coming from a non-sales background, this type of questioning often yields interesting conclusions.

Feel free to read our posting on Fiduciary Vs Suitability standards

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