Rules
of Engagement
© 2005 by Thomas M. Lilly,
JD CLU. All rights reserved.
What
a mess. AAA does it. AARP does it. Banks do it. Colleges
and universities do it. Professional associations
do it. Affinity groups do it. Just about everywhere
you turn, someone who knows something about you wants
to sell you something, and it’s always a great
deal, an offer you shouldn’t refuse. Even magazines
that you grew up trusting for objective product testing
have become arbiters of advice on financial products.
If
you’ve hit the great divide, you probably even
get offers of a free dinner in a nice local restaurant
with an informative presentation by someone with initials
after their name, or a catchy claim to some sort of
fame, and maybe even the promise that nothing will
be sold, only good information shared.
Bottom
line, assume that they want your money, as much of
it as they can get and as quickly as they can get
it. Cynical? You bet. Sure, individuals within any
of those groups may be as professional, competent,
altruistic, and objective as you’re told they
are. But how do you sort out the thieves, the ill-informed,
the amateurs, from those who will serve your needs
now and in the future?
What
rules of engagement should you consider when you open
the door, answer the phone, tear open the 1st class
postage envelope, open the e-mail, attend the seminar?
We
don’t pretend to have a litmus test for fraud
or incompetence. But we do have some very basic suggestions
that might help you stay out of harms way.
-
Ask yourself, Why am I doing this? What
am I looking for? What do I need? Why do I need
it?
-
Write
down your answers in your own words. If
you can’t make sense to yourself, don’t
engage with whoever or whatever has your attention.
-
If you didn’t solicit the information
or invitation, beware. You’re likely
on a very large list of folks who have been identified
by the area in which you live, purchases or even
gifts you previously made, organizations to which
you belong, credit accounts which you hold, or any
number of other identifiers. Don’t be caught
in the net!
Credible
information is certainly essential to making sound
decisions. But sound decisions must be based on real
need, your real need, not a perception created by
the assertions of a speaker or writer made with no
knowledge of your circumstances.
If
you decide to respond to an offer for information,
to attend a presentation, or even to allow a salesperson
to speak with you individually, the same fundamental
suggestions can help you stay in control of your decision
making.
-
Know why you are responding, attending,
or meeting before you do so.
-
Get the qualifications of the salesperson
in writing and be sure that you understand their
relevance, if any, to your needs.
Alphabet
soup after someone’s name may or may not signify
relevant education and professional standards. Ask
the person to explain how she or he got the designations,
what they mean, and why they are meaningful to advising
you.
-
Ask
the individual which licenses and registrations,
if any, do they hold in good standing in your state.
For
example, a Series 7 Securities license, a Series
6 Securities license, an Insurance license, are
they a Registered Investment Advisor?
-
Ask the individual by which, if any, state
or federal agencies are their activities regulated.
For
example, the U. S. Securities & Exchange Commission,
the state Securities Commission, the state Insurance
Commissioner.
-
Ask the individual whether a complaint has
ever been lodged against them with any regulatory
or licensing authority in this or any other
state.
-
Ask whether or not the individual carries
Errors & Omissions insurance covering the activities
in which they propose to engage in your regard.
-
Ask specifically how the individual is paid.
By commission, fee or a combination of both, and
by whom.
-
Ask whether you have a choice, should you do business
with them, to pay them by a fee only (rather than
by commission). If not, why not?
-
Ask whether or not, should you decide to do business
with them, would you be working with them or someone
else?
-
Don’t give personal information to anyone
until you are satisfied that you want to do business
with that person. Identity theft can
happen to you.
These
may appear to be tough questions, and the answers to
them won’t guarantee that you are working with
an honest, competent individual. However, you will put
the individual on notice that they need to prove themselves
as well as whatever they are selling to be worthy of
serving you and your needs.
Tom
Lilly can be reached toll-free at 1-877-687-4700 or
visit his website at www.futurecareassociates.com
|
