Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Heard from my friend fee-only Planner today
Old 09-20-2011, 05:01 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,895
Heard from my friend fee-only Planner today

Well, I got an email from my fee-only planner today.

But I don't know if I'm gonna answer back or not. This email came about from me a several days ago emailing my insurance agent about my LTC coverage. The agent was referred to me by the planner a few years back.

Originally, I emailed the insurance agent's company asking about automated payments to my LTC policy. Then I got a return email saying pretty much, .." call me about the payment options, and we can discuss about the upcoming LTC rate increase" I've ignored the email as since them, I'm leaning towards cancelling the policy, and readdressing LTC in the future
Is a hybrid a good idea?

So today checking my email I get a note from my fee-only planner, subject..."touching base on the LTC rate increase", saying pretty much.."the agent talked to her, and the planner is touching base with how I'm doing. And, I'm I doing okay in my portfolio, my investments? More than welcome to contact planner for a second opinion.."

Personally, I really don't want to talk to them. Maybe in their "expert opinion", they mean well, when they want to talk and discuss...But I'm pretty much content in my own decisions. I think that's the difculty in other opinions when it comes to money. I really don't wish to get into a discussion with my planner or agent about the Pros/Cons of keeping LTC coverage or not now or if my investment allocations etc. with my planner.

Your thoughts?
__________________

__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-20-2011, 05:58 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
You are the customer. Period.
If you have no need of their services right now (or ever), simply respond with nothing (no response) or a polite "Thanks but no thanks". Just be honest, and graciously decline.

I used a fee-based planner (CFP firm) years ago. They periodically send me their newsletter but never apply any pressure to "come in for a tuneup". I responded politely that I am a DIY now, and I know how to find them if I need them.
I personally would not hesitate to use this particular CFP firm's services again if I had the need to. I always go by the process of letting myself sit back for a little while, assessing the problem/solution path. I admit to knowing what I don't know, do some research, and then seek advice for the empty spaces that I cannot fill via my own elbow grease.
__________________

__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 09-20-2011, 06:31 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
I take it you're not currently paying the planner? In that case by all means ignore her.
__________________
Animorph is offline   Reply With Quote
Old 09-20-2011, 07:10 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,895
Quote:
Originally Posted by freebird5825 View Post
You are the customer. Period.
If you have no need of their services right now (or ever), simply respond with nothing (no response) or a polite "Thanks but no thanks". Just be honest, and graciously decline.

I used a fee-based planner (CFP firm) years ago. They periodically send me their newsletter but never apply any pressure to "come in for a tuneup". I responded politely that I am a DIY now, and I know how to find them if I need them.
I personally would not hesitate to use this particular CFP firm's services again if I had the need to. I always go by the process of letting myself sit back for a little while, assessing the problem/solution path. I admit to knowing what I don't know, do some research, and then seek advice for the empty spaces that I cannot fill via my own elbow grease.
I like the idea of a gracious "Thanks but no thanks" decline, but "I'll keep you in mind" response. Since I initiated the email about my LTC, I'll do the courteous thing and reply to the company. But instead of saying something like "Am I doing the right thing?" I'll send a FYI letter like "I decided to cancel my policy..thank you for your service".

As for my financial planner, I'll respond saying the "Thanks but no thanks, but keep her in mind" letter. I probably won't even mention my LTC decision in the email (she can get that info from the LTC agent since it seems they talk already ).

I have until Oct 20th to make my decision to cancel..so no rush to reply back at the moment.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 09-20-2011, 07:42 PM   #5
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
Did I understand, you wrote to your insurance company, who then notified your planner. Did you ask that your planner be notified? I think you may have a breach of confidentiality to deal with. Who did you authorize to be told?
__________________
growing_older is offline   Reply With Quote
Old 09-20-2011, 11:20 PM   #6
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Yeah, it would bug me no end to think my insurance agent and my financial planner are sharing information about me.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 09-21-2011, 06:03 AM   #7
Recycles dryer sheets
 
Join Date: Jul 2008
Posts: 136
Quote:
Originally Posted by easysurfer View Post
I like the idea of a gracious "Thanks but no thanks" decline, but "I'll keep you in mind" response. Since I initiated the email about my LTC, I'll do the courteous thing and reply to the company. But instead of saying something like "Am I doing the right thing?" I'll send a FYI letter like "I decided to cancel my policy..thank you for your service".

As for my financial planner, I'll respond saying the "Thanks but no thanks, but keep her in mind" letter. I probably won't even mention my LTC decision in the email (she can get that info from the LTC agent since it seems they talk already ).

I have until Oct 20th to make my decision to cancel..so no rush to reply back at the moment.
I tend to agree.

Seems the #1 complain folks have with their financial folks stems from lack of communication ("they made a sale and I never heard back from them"). At least these folks are trying to reach out.

Perhaps a firm "thanks, but no-thanks" would be the way to go.
__________________
TN_INVEST is offline   Reply With Quote
Old 09-21-2011, 06:10 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Insurance Agents usually want to talk to an existing customer to try to sell them something else. But, I would not ignore a contact. He may have something important to say (not sales related). It would be worth 5 minutes on the phone to find out. During the conversation, I would make it clear that I am not interested in purchasing other insurance now or in the near future. If that changes... "I will call you!"


I would have a similar conversation with the planner about insurance products!!!


Since this is a fairly new relationship with the planner and agent... I would talk to them just to see if that is how they operate. I might be inclined to dump the (fee based) planner if they are trying to turn the relationship into sales opportunities... especially if they are not relevant needs!!!
__________________
chinaco is offline   Reply With Quote
Old 09-21-2011, 07:18 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Quote:
Originally Posted by easysurfer View Post
...call me about the payment options, and we can discuss about the upcoming LTC rate increase" I've ignored the email as since them, I'm leaning towards cancelling the policy, and readdressing LTC in the future
...

Don't forget about the underwriting process. If you drop the policy and have a health problem... you may not be able to get coverage (at any price) later.


Rate increase or not... you purchased the LTCi for a reason. You need to think about why you bought it in the first place.

It seems that these types of insurance policies are more likely to be used by one when they get older, however something (e.g., accident) can happen in the younger years also.

So before you let that policy lapse... you really need to think about it. I think it would be a bad idea to just let is lapse with the intention of figuring it out later. Two obvious risks (IMO)

  1. Chance of some health problem or injury in the younger years that requires a large LTC expenditure.
  2. Chance of other health problems occur, that do not require LTC today, but make you uninsurable from the insurance companies' underwriting perspective.

There is no simple answer... You should do the analysis to understand your needs better and compare all of your options if you are going to revisit the decision.

If I were intending to replace the LTCi coverage in the future, I would get the new coverage before I let the current coverage lapse because of risk of not being insurable in the future due to the underwriting process.... or your can get coverage but at a higher premium cost because you represent a higher risk due to some health status changes.
__________________
chinaco is offline   Reply With Quote
Old 09-21-2011, 07:52 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,646
I don't see this as nefarious. The insurance agent recommended the FA so presumably knew OP wanted/needed financial advice. OP expressed concern about LTC rates going up but failed to followup. The insurance agent (reasonably) assumes OP may have financial concerns about the LTC costs and alerts FA that OP may have such concerns. FA is in a good position to advise about the implications of loss of LTC. Clearly, the agent may stand to benefit from advice that keeps OP insured but that is no biggy conflict. All told, no harm, no foul. In essence both agent and adviser are just being proactive. If you are going to hire advisers, let them advise. You still make the decisions.
__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is online now   Reply With Quote
Old 09-21-2011, 12:17 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,895
Quote:
Originally Posted by donheff View Post
I don't see this as nefarious. The insurance agent recommended the FA so presumably knew OP wanted/needed financial advice. OP expressed concern about LTC rates going up but failed to followup. The insurance agent (reasonably) assumes OP may have financial concerns about the LTC costs and alerts FA that OP may have such concerns. FA is in a good position to advise about the implications of loss of LTC. Clearly, the agent may stand to benefit from advice that keeps OP insured but that is no biggy conflict. All told, no harm, no foul. In essence both agent and adviser are just being proactive. If you are going to hire advisers, let them advise. You still make the decisions.

Actually, it's the other way around in that the FA recommended the insurance agent. I agree that they are for the most part just being proactive. It does feel a little funny that one must have talked to the other (all over little old me ), but I try to give folks the benefit of the doubt.

The rate increase psychologically is a bummer (I know, was not singled out, that's how it is in LTC insurance). Yet it makes one think, what good is the inflation protection when the inflation protection being protected is protecting the inflation costs to the insurance companies as they can just file a rate increase.

As a consumer, it's as if I was buying a new car, say, negotiated a deal on a new Toyota Prius. But the dealer goes, guess what, you can't get the Prius, but here's a Honda Insight Hybrid. Still a hybrid, still might offer a great value, but not what I negotiated for and a Prius has more value than an Insight.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Old 09-21-2011, 02:10 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by easysurfer View Post
Actually, it's the other way around in that the FA recommended the insurance agent. I agree that they are for the most part just being proactive. It does feel a little funny that one must have talked to the other (all over little old me ), but I try to give folks the benefit of the doubt.
I have a small group of experts I refer my clients to. For example, I have a good relationship in my area with one of NML's top agents. What he knows about LTC, buy-sell, second to die etc, is more than I could learn in a lifetime. So, do I provide value if I can offer an expert to help the client? His/her other options are surfing the net or talking to family and friends to try to find someone who knows their stuff. The fact that I have vetted this person makes my clients feel comfortable, and get the services of one of the top persons in his field at arguably the top insurance company in America. I think that provides value, but most on here would say no.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 09-21-2011, 08:20 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Quote:
Originally Posted by FinanceDude View Post
I have a small group of experts I refer my clients to. For example, I have a good relationship in my area with one of NML's top agents. What he knows about LTC, buy-sell, second to die etc, is more than I could learn in a lifetime. So, do I provide value if I can offer an expert to help the client? His/her other options are surfing the net or talking to family and friends to try to find someone who knows their stuff. The fact that I have vetted this person makes my clients feel comfortable, and get the services of one of the top persons in his field at arguably the top insurance company in America. I think that provides value, but most on here would say no.........
I think it provides very good value. It is what people of means have always relied on in the past, and usually it worked pretty well.

The agent cannot kidnap you and make you buy something, so what is the problem?

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 09-22-2011, 07:29 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by haha View Post
I think it provides very good value. It is what people of means have always relied on in the past, and usually it worked pretty well.

The agent cannot kidnap you and make you buy something, so what is the problem?

Ha
Well, most folks on here think an FA provides no value, so just throwing that out there..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 09-22-2011, 10:37 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 7,895
Quote:
Originally Posted by chinaco View Post
Don't forget about the underwriting process. If you drop the policy and have a health problem... you may not be able to get coverage (at any price) later.


Rate increase or not... you purchased the LTCi for a reason. You need to think about why you bought it in the first place.

It seems that these types of insurance policies are more likely to be used by one when they get older, however something (e.g., accident) can happen in the younger years also.

So before you let that policy lapse... you really need to think about it. I think it would be a bad idea to just let is lapse with the intention of figuring it out later. Two obvious risks (IMO)

  1. Chance of some health problem or injury in the younger years that requires a large LTC expenditure.
  2. Chance of other health problems occur, that do not require LTC today, but make you uninsurable from the insurance companies' underwriting perspective.
There is no simple answer... You should do the analysis to understand your needs better and compare all of your options if you are going to revisit the decision.

If I were intending to replace the LTCi coverage in the future, I would get the new coverage before I let the current coverage lapse because of risk of not being insurable in the future due to the underwriting process.... or your can get coverage but at a higher premium cost because you represent a higher risk due to some health status changes.
I decided on a flip-flop and am gonna stick with my LTC policy.

The first knee-jerk reaction was to cancel the darn policy as insurance premiums (especially LTC, I think, feels like throwing good money after bad).

But you're right, I do have LTCI for a reason.

It's no fun, thinking about oneself needing LTC. I'm healthy, young (in LTC terms), yet as for risk itself, the possibility of getting in a car wreck and needing care from that is reason enough to stick with the policy.

Guess only time will tell if I was a fool or a genius.
__________________

__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 11:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.