Ark Royal Wealth Management Founder Mike Palmer Speaks with Marketwatch

How to Know if Your Advisor is Working in Your Best Interest

Ark Royal's Mike Palmer shared his perspective with MarketWatch on a reader's submission about their advisor selling them an expensive whole life insurance policy. “It’s unclear how long your divorce agreement requires the life insurance to be maintained. My guess would be through the children’s college age. If it was for a set period of time, it would be unconscionable that an adviser would recommend an expensive whole life product whose death benefit was two times the required amount. I can only surmise this was done solely to generate commissions for the adviser. A far more appropriate plan is to secure a $250,000 term policy whose term matches the court stipulated period of coverage,” says certified financial planner Mike Palmer at Ark Royal Wealth Management.

What kind of financial adviser should you look?

An adviser who justifies his recommendation by touting the rich clients he serves and the size of his home seems defensive, in addition to being inappropriate.  “In my view, you should run, not walk from this adviser ASAP. Unfortunately this is a classic example of the suitability standard brokers are held to. Was the $500,000 whole life policy suitable? Yes. Was it the best solution? Absolutely not,” says Palmer.  

Should You Work with a Fiduciary Advisor?

Unfortunately, some advisors say they are a fiduciary but actually wear two different advisor hats - one minute working as a fiduciary and the next selling you a commission product. You can't rely on what an advisor says - get a fiduciary oath in writing. (See this related blog post: Coach Pete D'Arruda - A Closer Look at Conflicts of Interest)  

Read the entire MarketWatch story here.