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Anyone use Finity Group Financial advisors before? Or head anything about them?

Home Financial Advisors Anyone use Finity Group Financial advisors before? Or head anything about them?

  • Avatar Dilaudidopenia 
    Participant
    Status: Physician
    Posts: 206
    Joined: 05/22/2016

    Sometimes when I read posts on WCI I get nervous and go back and reevaluate past moves I’ve made to see if they seemed right.  I used Finity for my mine and my wife’s insurances and everything has seemed fine.  They are both “big 5” company policies.  The prices seem reasonable and the “occupation” definitions surely seem like they are “own occupation.” The life policies are term and I was never offered whole – the price is the same as on term4sale. When I said I’d be going it on my own for financial planning, the agent was completely understanding and also offered to set up “fee only” meetings on a annual, or semi-annual basis just to run my plan by him, if I so choose.  The whole experience has seemed fine.

    #35238 Reply
    Liked by Zaphod
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4531
    Joined: 05/13/2011

    This is a general comment and is not directed toward any firm in particular and not Finity Group.

    It’s okay to buy your disability and life insurance from someone who calls himself an “advisor” and gets paid a commission. But if you want financial advice or want your assets managed, I recommend you seek out a fee-only advisor. It’s not that it is impossible to get good advice at a fair price from a fee-based advisor. But they often have less training, less experience, and more conflicts of interest.

    Fee-based is not fee-only and there is no price too low for bad advice.

    Lots of hybrids out there though. For instance, I don’t think it is terrible to pay a commission on your disability and life insurance and then pay the same guy an AUM fee for your investments. Finity Group tells me that this is what they do. What I would love to see, however, is for that advisor to reduce the AUM fee in recognition that you paid him commissions on the insurance. But I can’t recall seeing anyone who actually does that, and maybe it’s not even legal.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #35247 Reply
    Liked by Etomidate20
    Avatar Etomidate20 
    Participant
    Status: Resident, Physician
    Posts: 1
    Joined: 02/03/2017

    Thanks for the advice.  I actually came across this thread looking at feedback on Finity Group since I’m not sure they will be the right fit for me after residency.  I started working with them a few years ago, as they do not charge while in residency, and I’ve purchased term life and disability insurance from them already.  I will definitely consider a fee-only advisor when I finish training.  It’s unfortunate that the financial background for most physicians (like me) is quite inadequate despite our high earning potentials 🙁

     

    [Editor’s Note: Finity Group notes that they work with many of their clients on a fee-only basis and are more than willing to do so with new clients. If you wish to buy your insurance elsewhere and do financial planning and investment management on a fee-only basis, that is entirely doable.]

    #35582 Reply
    Avatar subzero123 
    Participant
    Status: Resident
    Posts: 8
    Joined: 02/12/2017

    Interesting thread. I joined on with finity group really early in my training (PGY2). I was of course drawn to the free advice, as someone who has zero knowledge on finance. I eventually got life and own occupation disability insurance with them, as did my wife. Aside from reorganizing my wifes 401k, we have not signed up for nor invested anything else with them. I am now 5 months away from being an attending, and not sure what to do. I still don’t know if I know enough about the market to manage this stuff on my own. I also would feel kind of bad for getting free advice for nearly 4 years and then just dropping them.

    #36513 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1174
    Joined: 02/15/2016

    Interesting thread. I joined on with finity group really early in my training (PGY2). I was of course drawn to the free advice, as someone who has zero knowledge on finance. I eventually got life and own occupation disability insurance with them, as did my wife. Aside from reorganizing my wifes 401k, we have not signed up for nor invested anything else with them. I am now 5 months away from being an attending, and not sure what to do. I still don’t know if I know enough about the market to manage this stuff on my own. I also would feel kind of bad for getting free advice for nearly 4 years and then just dropping them.

    Click to expand…

    Do you feel bad if you eat a free sample at Costco and then don’t buy the product?

    It’s a loss leader, so they benefit from it even though they expect some to defect after getting their “free advice,” in some cases because they’re hampered by guilt.  I’m sure they’re doing all right.

    [Editor’s Note: Finity Group knows they won’t be the right fit for everyone and no one should feel guilty if it’s not the right fit. They made the commitment to work for free and are okay with clients that move on. They also emphasize that they never look at their clients as loss leaders.]

    #36515 Reply
    Avatar subzero123 
    Participant
    Status: Resident
    Posts: 8
    Joined: 02/12/2017

    Yea thats true. Luckily we are not too invested with them aside from a few insurance policies, so its not like a lot has to be changed. I found this website in the nick of time, as my wife and I are both about to start attending hood on July 1 and have to make some real decisions. Ill look into UAMFS or Larson financial instead

    #36543 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4531
    Joined: 05/13/2011

    Interesting thread. I joined on with finity group really early in my training (PGY2). I was of course drawn to the free advice, as someone who has zero knowledge on finance. I eventually got life and own occupation disability insurance with them, as did my wife. Aside from reorganizing my wifes 401k, we have not signed up for nor invested anything else with them. I am now 5 months away from being an attending, and not sure what to do. I still don’t know if I know enough about the market to manage this stuff on my own. I also would feel kind of bad for getting free advice for nearly 4 years and then just dropping them.

    Click to expand…

    You paid them well with the commissions from the insurance. Nothing to feel bad about.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #36643 Reply
    Avatar subzero123 
    Participant
    Status: Resident
    Posts: 8
    Joined: 02/12/2017

    Interesting thread. I joined on with finity group really early in my training (PGY2). I was of course drawn to the free advice, as someone who has zero knowledge on finance. I eventually got life and own occupation disability insurance with them, as did my wife. Aside from reorganizing my wifes 401k, we have not signed up for nor invested anything else with them. I am now 5 months away from being an attending, and not sure what to do. I still don’t know if I know enough about the market to manage this stuff on my own. I also would feel kind of bad for getting free advice for nearly 4 years and then just dropping them.

    Click to expand…

    You paid them well with the commissions from the insurance. Nothing to feel bad about.

    Click to expand…

    Yea thats true. Got a 20 year term life policy with northamerican and pretty decent true own occupation disability with metlife. They found me at a point in my life where I truly knew NOTHING about this stuff, as im sure is true for their entire key demographic. My wife and I are both physicians and about to be starting our attending lives in July, so im sure im about to start getting the talk about fee structure. Im not sure if I should stay with them even if they offer to do a flat fee per year which is what im looking for. On one hand it is nice because they know us and our situation so well. [Libelous comment deleted.] Just finished your book and the millionaire next door, and I already feel like I have a solid grasp on what we need to do to succeed.

     

    #37031 Reply
    Avatar mypostefan 
    Participant
    Status: Other Professional, Spouse
    Posts: 6
    Joined: 01/27/2016

    I also joined one of their free dinners about 5 years ago. I spoke with then over the phone 3-4 times. Initially maybe 3 times and then once again after a year. I bought term life insurance from them (I checked and the price was the same as term4sale.com…I think this is the site). They tried to get me to switch my investments to them, i.e. to have them manage them, but, after they have patiently explained a lot of terms to me, I declined. They also very very patiently explained disability insurance, but I declined too. After about 1.5-2 years, when I stopped answering their emails, they stopped. They got me to want to know more, which I did. Overall, not a bad experience, but again, I did not do much with them.

    #37052 Reply
    Avatar Dilaudidopenia 
    Participant
    Status: Physician
    Posts: 206
    Joined: 05/22/2016

    I also joined one of their free dinners about 5 years ago. I spoke with then over the phone 3-4 times. Initially maybe 3 times and then once again after a year. I bought term life insurance from them (I checked and the price was the same as term4sale.com…I think this is the site). They tried to get me to switch my investments to them, i.e. to have them manage them, but, after they have patiently explained a lot of terms to me, I declined. They also very very patiently explained disability insurance, but I declined too. After about 1.5-2 years, when I stopped answering their emails, they stopped. They got me to want to know more, which I did. Overall, not a bad experience, but again, I did not do much with them.

    Click to expand…

    Out of curiosity, why term life but not disability?  Usually if one is going to skip on life or disability, it’s usually life and not the other way around.

    #37071 Reply
    Avatar mypostefan 
    Participant
    Status: Other Professional, Spouse
    Posts: 6
    Joined: 01/27/2016

    Because both me and wife have both short term and long term disability insurance though our employers (60%) and we can also live on a single income. We are both W2 employees and, while employers may change, we will probably work for someone offering disability insurance.

    #43324 Reply
    Liked by Zaphod
    Avatar dexmax 
    Participant
    Status: Resident, Physician
    Posts: 2
    Joined: 11/19/2017

    I came across White Coat Investor recently and this thread, and I must say it has caused a bit of anxiety for me.

    I am a fellow finishing training soon, admittedly VERY financially illiterate. I started working with the Finity Group a few years ago after a presentation at my residency program.  I have financially literate friends and I ran everything the Finity Group guy told me through multiple people before pulling any triggers. Honestly, their advice seems generally sound.  They helped me get a great disability rate through MetLife and a term-life insurance policy based on my and my wife’s goals. They told me to steer clear of whole life insurance and generally took a big picture view with my goals (i.e. just how much life insurance I should have and what the term should be based on when my wife and I want to have kids, etc).

    I already had a Roth IRA at Vanguard. As I’m moving into attending life, they have mentioned that this might be a good time for me to move the little I have in my 403b to a Roth, which seems fine, at the very least not a big deal.

    To facilitate this, I moved my entire Roth for Vanguard over to Cambridge Research Advisors (their investment arm as you all know from this thread). But I am having serious misgivings now after reading this thread. I mean, I know they charge a 1% fee of the balance of the account, which they were up front about. Their initial allocation seems fine on face. I will have to look into the whole fee-only vs fee-based thing. I’m hoping I did not make a serious mistake here…

    #75741 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 4531
    Joined: 05/13/2011

    I came across White Coat Investor recently and this thread, and I must say it has caused a bit of anxiety for me.

    I am a fellow finishing training soon, admittedly VERY financially illiterate. I started working with the Finity Group a few years ago after a presentation at my residency program.  I have financially literate friends and I ran everything the Finity Group guy told me through multiple people before pulling any triggers. Honestly, their advice seems generally sound.  They helped me get a great disability rate through MetLife and a term-life insurance policy based on my and my wife’s goals. They told me to steer clear of whole life insurance and generally took a big picture view with my goals (i.e. just how much life insurance I should have and what the term should be based on when my wife and I want to have kids, etc).

    I already had a Roth IRA at Vanguard. As I’m moving into attending life, they have mentioned that this might be a good time for me to move the little I have in my 403b to a Roth, which seems fine, at the very least not a big deal.

    To facilitate this, I moved my entire Roth for Vanguard over to Cambridge Research Advisors (their investment arm as you all know from this thread). But I am having serious misgivings now after reading this thread. I mean, I know they charge a 1% fee of the balance of the account, which they were up front about. Their initial allocation seems fine on face. I will have to look into the whole fee-only vs fee-based thing. I’m hoping I did not make a serious mistake here…

    First of all, nothing bad has happened to you. I mean, 1% of a tiny account is nothing, plus you admit you are very financially illiterate. If you later want to be a do it yourselfer or pay less for advice, that’s certainly an option.

    The rest of the advice and service given in the past sounds perfect.

    It’s good you’re paying attention, but you’re not like the person who emailed me the other day after paying 3 years of $150K whole life premiums (not from Finity Group.)

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #75755 Reply
    Avatar dexmax 
    Participant
    Status: Resident, Physician
    Posts: 2
    Joined: 11/19/2017

    Yes, everything you say is true. I guess this is a kick in the rear to get my head out of the medical books and journals for a bit and learn some personal finance.  At a minimum, to at least be able to keep an eye on the advising itself. I will be ordering your book…

    #75787 Reply
    Avatar gorgeous99 
    Participant
    Status: Physician
    Posts: 1
    Joined: 01/09/2018

    Interested on some details/perspectives.  I also have been discussing with Finity group for past 3 years of residency.  I already had purchased Term Life and Disability.  Through my discussions never felt pressured to get additional coverage; they even started an application for disability for me to bridge until my current job disability kicks in.  When I found out it kicked in early they recommended ripping up their plan – ie. they wouldn’t get any incentive money.  Now is time to “pay them” and the model is a monthly payment – fee-based.  All my money will be put into vanguard funds with allocation from their recommendation… I have always been hesitant of the Cambridge association, but I don’t see how they will benefit from the decisions they give me to allocate money; seems that the monthly payment is the payment.  Also, they have the fiduciary commitment but as a member of Cambridge group.  What piece am I missing?

    Thanks.

     

    #95976 Reply

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