Carlson Capital Management operates under the fiduciary standard, which means we provide advice that is in the best interest of our clients. And, as an independent Registered Investment Advisor (RIA), we are not beholden to any third party and have no hidden incentives to recommend one product or solution over another. We often describe this concept using the metaphor that we are in a supermarket—with access to the entire store, and can pick and choose the solutions (products) that best fit your financial situation. Not all advisors operate this way, and many are restricted to one aisle of the supermarket, limiting their ability to truly find you the best solution for your needs.
Our recommended reading for this week discusses financial products known as fixed-index annuities. Although these insurance contracts are often billed as attractive, "crash-proof investments" for retirees, the related misleading sales pitches often ignore most products’ hidden costs, limited growth potential, and handcuffs in the form of high surrender charges. We highlight this article because we want our clients to be aware that our "supermarket approach" would make it possible for us to recommend these annuities, and similar products, if we thought they would benefit our clients and help them secure a successful financial future. Yet our independent fiduciary commitment means we wouldn’t recommend them—for numerous reasons, but primarily due to their high hidden costs and poor long-term performance. So, in the same way a nutritionist might direct you away from the aisle full of candy and soda, we do the same for our clients when it comes to products like fixed-index annuities.
NOTE: The articles and information at the above links contain the opinions of the author(s) and those interviewed by the author(s) but not necessarily Carlson Capital Management and does not represent a recommendation of any particular security, strategy or investment product. The opinions of the author(s) are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. These articles are distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. Past performance is not indicative of future results and no representation is made that the stated results will be replicated.