Frequently Asked Questions
Q: What is the difference between working with a captive advisor and an independent advisor?
A: A captive advisor is managed as an affiliate or subsidiary of a corporation and operates almost exclusively for the use or needs of the parent corporation rather than independently for the general public. The parent company may push its captive agents to sell certain policies or meet certain sales quotas.
An independent advisor has the flexibility to address each need and goal with the financial or insurance program that is the most suitable, without the limitation and the obligation to use only a parent company's products.
Next Degree Financial Advisors are Independent.
Q: What does it mean to have a comprehensive financial plan?
A: Rather than addressing each financial need individually, a comprehensive financial plan encompasses each need and how they impact one another before implementing the best solution. This allows you to make choices that positively impact the overall plan rather than one aspect a time.
There are many elements of a comprehensive financial plan that fall under five core components that we address at Next Degree Financial, including: Investments, Risk Management, Retirement Accounts, Tax Implications and Estate Plan Funding.
Q: What kind of fees or expenses can I expect when working with a financial advisor?
A: There are a number of options when paying for the assistance and the time with a financial advisor, including: management fees (a percentage of assets under management each year), commissions to the advisor paid by the company that has been selected for the client and hourly fees for the time spent working on your financial case, by the advisor.
We feel that there is no one right answer for each and every client. We understand that everyone has different needs and goals and depending on your scenario we will help educate you and move forward with the best option. We feel that it is not only important that you are aware of any fees, but that you also understand that a large aspect of all of our recommendations are based on keeping fees low and increasing value. There is never a fee for your initial consultation at Next Degree Financial.
Q: I bought my life insurance policy five, ten, twenty or even thirty years ago, is there any chance that I can reduce my premiums and keep the insurance protection?
A: Yes! Life insurance has come down significantly in price over the last twenty years. Even if you purchased your life insurance recently, having your current premium shopped against the other insurance competitors could reveal that you are currently paying too much People are often surprised to find out that they can replace their old policy and either increase their coverage or reduce their premiums.
Old life insurance policies are one of the most commonly overlooked aspects of a financial plan. The assumption that "I took care of that years ago, and I am all set" couldn't be further from the truth. Clients are almost always shocked when they find out how much their premiums are going to increase to, in the relatively near future, if they want to keep their current coverage with their old policy. Most are unaware that their premiums are going to increase at all. Many of those old policies were written in a time when interest rates were very high and were sold with the assumption that interest rates would stay relatively high. If you are not 100% exactly sure how your policy works, we strongly urge you to come in for a free policy review and comparison.
Q: I like my current investment, but my financial advisor has retired or no longer works in the industry, can I keep my current investment and work with you?
A: The answer is typically yes, but not always. There are companies that have a sales force who can only sell their own proprietary insurance and investment products. Sometimes those companies only allow their own captive sales force to manage those products. If that is the case, you might want to compare what you currently have to what else is available within the industry.
Many advisors are only interested in moving your money into whatever program they are offering, rather then first accessing your current investment. Since we are independent, aside from the scenario mentioned above, we can usually work with you and keep your investment with the company that it is currently being held. Your best bet is to schedule an appointment to come in and find out for sure.