Agents, Brokers, and Fiduciary's. Is there a difference?

In regards to any type of financial advice, there is a difference between insurance agents, brokers, and fiduciary financial advisors.

Insurance agents usually have a life, health, and p & c license. If they are providing any kind of financial advice, they will probably have a series 6, 63, and 66. Some may have a series 7. They usually sell mutual funds and insurance-based products.

A broker will usually have the same as the insurance agent and a series 7. Some will also have a series 65. One main difference is the broker will get paid per stock trade they make for a client.

The fiduciary will usually have their life, health, and series 65 license. Under the series 65, one can charge a fee for advice and also manage money like the broker. The fiduciary has to do what's in the client's best interest at all times.

THE GREY AREA - the insurance agent and the broker do not have to do what’s in your best interest as a client. Not saying anyone in that position would ever do anything less but it happens. For the broker who can wear both the broker “hat” and the fiduciary “hat”, its hard to tell which hat they are wearing when giving advice.

As far as which one is right for you as the client, I can’t answer. I would say that depends on what type of advice you’re needing and the case experience of the professional you’re interviewing. Notice I said case experience and not years of experience. Just because someone has been “in the business” for years, doesn’t mean they know what’s best. There is no cookie-cutter approach.

Hope this helps, Jordan Smith