Conversion to Exclusive Fee-Only Financial Advisor Services

Over the 40 years that Searcy Financial Services has been serving clients, we have helped clients purchase Life, Disability and Long Term Care insurance policies to protect their future. While insurance planning was, and will continue to remain, an important aspect of financial planning, we will no longer act as an agent to complete the purchase process. This act allows our firm to be known as a “Fee-Only” firm with various licensure and accreditation boards, as we will no longer receive any commissions for the sale of new insurance nor receive any commissions for the sale of insurance in previous years.

We will continue to assist our clients with insurance matters, including, but not limited to: analysis of existing policies, communications about new and existing policies, determination and recommendation for appropriate coverage and simply being available to explain how policies work and fit (or don’t fit) into their overall financial situation. In essence, clients can expect to receive the same level of guidance and planning regarding their insurance needs, but the actual implementation will be delivered by a professional in our network.

After testing a very long-standing relationship with an excellent provider, we will be transferring the servicing commissions of existing policies plus the implementation process for acquiring new policies to a third-party team who will now be handling the process of supplying detailed explanations of proposed coverage (while keeping us informed of all proposals), completion of the application forms, arranging medical exams, following the application through underwriting, resolving issuance issues and policy delivery. For such work, they will receive the commissions associated with the acquisition or ongoing service of insurance policies.

Why the change?

Our goal in acting as a fiduciary to our clients has always been to fully disclose potential conflicts of interest, including a written disclosure of how we are compensated when helping our clients with insurance. However, with the rapid changes within our industry, we have chosen to remove every possible “appearance” of potential conflicts of interest – whether real or imagined. We want our clients to continue to have the utmost confidence in our firm and eliminate the potential for any questions before they may arise.

Our conversion to a “Fee-Only” financial advisor firm allows us the ability to focus more on the impact of insurance to clients’ overall financial plan and eliminate the time needed to facilitate the implementation. When helping our clients implement their insurance in the past, we extended our fiduciary duty of care to this practice because we knew if they chose to work with a provider outside our network, they may find agents that did not have their best interest at heart. By working with a vetted professional, we can help to ensure our clients have access to the coverage they need and are not subjected to potential unscrupulous business practices. This is just another step in our quest to provide our clients with excellent service.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.  

Published for the blog on November 6, 2015 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.