Re: This is why FAs have such a bad rep
The instance cited underscores the need for the financial industry to clean up its act. It is very difficult to distinguish between a real "financial advisor" and salesmen. The couple involved are obviously very well educated (MDs & lawyers) but had no sophistication in dealing with an insurance shark. This couple may well be able to afford such a "lesson" but it doesn't make it right. Indeed, the next person dealing with such a shark may not be able to afford a lesson and may be financially ruined. While I hate to get into too much government regulation, maybe there needs to be a real law with real teeth that require purveyors of financial products to disclose all fees and commissions. I suppose that it is unrealistic but I wouldn't mind having a requirement that "advisors" selling financial products should have to put up a big sign on their desks saying that they are "salesmen" and will benefit personally from any advice provided or products sold.