As you may have learned in our previous post, at retirement, you no longer have to choose an advisor from a list to help you plan your retirement or provide investment advice. In fact, it’s now all about your future, not the future income of some salesperson who sells 403(b)’s and other products. See, the system that has claimed to protect you has simply allowed a bunch of salespeople to roam the halls of school districts throughout Pennsylvania selling stuff! These salespeople earn commissions on the products they sell you! For example, did you know that if you put your $200,000 PSERS lump sum in one of these endorsed annuity products, the salesperson could earn over $10,000 on just that sale alone! And, on top of that, you could pay an extra $2,000 per year in expense charges! And, what’s the incentive for the salesperson to help you in the years after the sale? Not much, other than to switch you to another annuity after the surrender period to earn yet another commission. And you thought it was for some other reason that a switch was suggested?
It’s time that teachers start sitting on the same side of the table as their advisors. To do this, you need to work with an advisor who doesn’t have an agenda or a product to sell you! That type of advisor really does exist outside of the system that has “protected” you. If you are thinking of retiring in 2014, give us a call today to learn more about how a real advisor can help you make smart retirement decisions.