Friday, April 4, 2014

Fiscal Friday: Breaking up is not so hard to do

It's Fiscal Friday! Today's post the time that J went on two dates then broke up with a financial planner.

A good friend had referred us to a financial planner they had used. We have been working hard on paying down debt and starting to save. However, we had never seen a financial planner before. We figured this was as good a time as any.

I won't mention the company, but know that it was an insurance company.

Anyways, J went for a consultation. During the meeting, the planner asked him to gather our relevant information. This would be information on insurances, retirements, mortgage, and any other financial information. It was during this time I came clean about having a couple of random rollover IRAs (more on that in another post). They discussed our short and long term financial goals. One of our short term goals was to set up life insurance for J.

A second meeting was held to review the information gathered. Or so we thought. It was at this meeting that the planner (who was just doing his job) tried to sell some additional insurance to J. He also asked J if he would be willing to move his money out of our current financial institution.

The above gave J reason for pause.

Then J decided to research the company. After reading a couple of different sources, we discussed the findings. One striking item was the business model where reps are encouraged to sell whole life policies at hefty sums for large commissions.

More power to them.

But it didn't sit well with us. So J wrote a firm, but polite email to let him know to stop all actions on our behalf. After a couple of conversations, we finally parted ways.

Maybe this would have been beneficial for us. Perhaps we made a mistake. But we had to go with what felt right.

Timing is a funny thing. The following week, my Fidelity rep for my 403(b) was at my work. I made an appointment to look at my retirement accounts. He was extremely helpful on many items and provided guidance on ways that we could maximize the tax benefits of my retirement account.

Make sure to check out Katie and Christina as they share their Fiscal Friday stories!


  1. I hooked up with a financial planner about a year ago and he is SO freaking pushy. I hate it. I had the feeling after meeting with him a few times, but I ignored it and figured that's what he was supposed to be doing - pushing me to make uncomfortable decisions about finances to set up for my future. I wish I would have listened to my gut in the beginning - so GREAT job to you guys for doing that. I think you probably saved yourself a lot of frustration and trouble in the future.

    Is J looking to take on a freelance gig for writing another financial planner breakup letter? I'm looking to hire.

  2. Money is so personal that if something didn't feel right to you then you definitely did the right thing! I would like to look into a financial planner but honestly we just don't have enough save or feel like we make enough yet.

  3. Scott's cousin works for an insurance company that sells these weird 1/2 policies (like 1/2 whole life policy with 1/2 mutual fund) and we actually wound up cashing out part of it and only keeping the life insurance, etc. because we have a friend who is REALLY good with money who gave us better advice!

    Great job!