One of the biggest mistakes I frequently see investors make is needlessly losing control of their money. Any time you pay a hefty commission or face surrender penalties in order to get YOUR you lose control. Losing control severely limits access to YOUR and limits your flexibility to make changes. This can trap you in an under-performing investment adding years to the time needed to reach your goals.
Whose is it? Is it your broker's, banker's or insurance agent's? No, of course not. It's YOUR money. Don't believe the lie that says you have to pay a big commission or face years of onerous surrender charges to get an advisor's help when you invest. It's simply not true. Can you imagine your doctor or dentist asking you to pay them for 10 years worth of service up front? Then a professional advisor shouldn't ask you to, either.
Sharon is a real-life example. Sharon became a widow a few years ago after her husband died of Lou Gehrig's disease. Her advisor put almost 90% of her into variable annuities. Now her is locked up for 10 years! If she wants or needs more than a small portion of that she will have to pay a penalty that starts at 9%! That's tens of thousands of dollars in surrender penalties. Whose is it? It's her money, but now she can't get at it!
Think about all of the reasons Sharon may want or need her over the next 10 years. Her health could deteriorate and she might need nursing home or home health care. Maybe she decides to move to a different part of the country to be closer to her grandchildren. Or she could decide that she wants to buy a second home at her favorite vacation spot.
Her investment objective could change. Maybe she doesn't feel comfortable with her
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