The cost of fraud is expensive with attorney fees, settlement costs, revocation of your license(s) and not covered by your errors and omissions insurance. Client suitability should be a chief concern in product and planning recommendations. There are many risk tolerance tests, psychological questionnaires and past financial history to collect a client’s attitude about money during the discovery stage of the interview process. Case in point: A financially conservative married couple in their … [Read more...]

The cost of fraud is expensive with attorney fees, settlement costs, revocation of your license(s) and not covered by your errors and omissions insurance. Remember, he who frames the argument wins. Presentations to the public are going to be scrutinized for any misleading information that enhances the “sales close.” An example: Historical performance is not an indication of future performance. If that’s true why do you bring it up all. Case in point: 10-year performance calculated from … [Read more...]

The cost of fraud is expensive with attorney fees, settlement costs, revocation of your license(s) and not covered by your errors and omissions insurance. Lies that are unintentional are still lies. Intent is irrelevant. Intentional lies could fall into the realm as criminal. Chronic falsehoods about products, planning and other planners may disqualify you as unfit to handle others finances not to mention losing your status as a fiduciary. Inaccurate descriptions of policy provisions or … [Read more...]

The unintentional omission of material facts in your presentations can be as dangerous as fraud. Incompetence is a form of ineptness. You may honestly be able to say you weren’t aware of some critical fact, that if presented, may have turned out to be a deal killer for your client. But in our suit happy society ignorance is not a defense when you should have known better because you position yourself as financially knowledgeable. When you can’t explain to an arbitration board why you sold a … [Read more...]

The unintentional omission of material facts in your presentations can be as dangerous as fraud. I’ve been in this business almost forty years. On one hand it’s that experience I promote like a badge of honor, a tribute to my staying power. And why do most seasoned veterans advertise that fact? Because the public loves longevity. On the other hand, it could be a noose around my neck if things go badly with a client because of an omission. After all, you’ve been around forever, and you should … [Read more...]

The unintentional omission of material facts in your presentations can be as dangerous as fraud. And it doesn’t exonerate you even if you don’t hold yourself out as a fiduciary. So, if you omit a fact that could have altered the buying decision and that decision negatively effects your client you have a problem. And the first-place arbitrators and litigators troll is your online profile. Bios are in fact, autobiographies that are used for touting expertise, authority and advanced knowledge. … [Read more...]

The unintentional omission of material facts in your presentations can be as dangerous as fraud. Often, it’s not what you say that gets you in trouble, but what you didn’t say that gives a voice to silence. Sometimes silence is golden, but other times it’s just plain yellow. Critical information missing in the decision-making process to the public can nullify an entire presentation and expose you to a lawsuit. Indeed, certain omissions can be such a tipping point item that it could morph into … [Read more...]