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I am 30 and have been an attending for a little over a year. In the last year of medical school, my school allowed NWM to come give a lecture to our class for "financial advise." Hook, bait, sinker for me. Luckily, I during residency I only bought term life insurance and disability insurance from them. At 29, I finished residency with around $39K in my 403b. The NWM financial advisor talked me into a few things I need some help with.
1. He talked me into transferring that 403b to a traditional IRA deferred variable annuity with a front end fee design. I had no idea what this meant at the time (luckily I have now read the white coat investor book, listened to all of the podcasts, started reading the WCI and bogleheads forum, and started reading the boglehead books). The fee was 4.5%!!!! It appears from the contract that there is no surrender fee. From what I have read, I can transfer the IRA Annuity to an individual 401K (trying to do a backdoor Roth IRA this year). Are there any other problems I should forsee before proceeding?
2. He talked me into slowly converting my term policy to a whole life policy. Luckily I chose to only do $240K at first have only been making payments for 12 months. I am in it about $3600 and have a cash value of $400. I already wrote him an email asking him to convert it all back to the term policy. He wrote back trying to talk me out of it and wanted to "meet up" for 30 minutes to look at some videos and statistics. I said no please convert it back to the term policy. I am currently only paying $42/month for the term policy to 80 which is currently a $760K policy. He has not responded and its been 3 days. Should I look at cancelling the term policy too? I feel like that is a good rate but I have definitely been wrong on a few things.
3. He talked me into own occupation disability insurance. I do not think this was necessarily a bad decision. I bought the first batch of $3145 in residency (I pay $141/mo) and the second batch of an additional $5075 when I became an attending (I pay an additional $105/mo for it). So its $8220 of coverage for $246/mo. I have declined further increases. From the podcasts, I understand the NWM does not offer the best "own occupation" coverage because its really only physician specific not specialty specific. Luckily I am an Internal Medicine physician so its not as big of a deal for me. Should I also look into completely cancelling the disability policy and looking elsewhere, or is this a good deal?
As you can likely tell, I am very flustered with NWM. I feel like the wool was pulled over my eyes. My financial advisor seems like a really nice guy, but being a nice guy doesn't mean he had my best interests in mind or that he knows what he is doing. I am severing all investment ties with him, but the bigger question is should I sever insurance ties as well?
I am on the right path now. I want to do this on my own from this point forward. I find it interesting and I can't get enough material read about it (actually I would rather listen). I actually listened to the WCI book on by audiobook (Audible app) and that was fantastic. Thanks in advance for your help!. I really appreciate it.
1. He talked me into transferring that 403b to a traditional IRA deferred variable annuity with a front end fee design. I had no idea what this meant at the time (luckily I have now read the white coat investor book, listened to all of the podcasts, started reading the WCI and bogleheads forum, and started reading the boglehead books). The fee was 4.5%!!!! It appears from the contract that there is no surrender fee. From what I have read, I can transfer the IRA Annuity to an individual 401K (trying to do a backdoor Roth IRA this year). Are there any other problems I should forsee before proceeding?
2. He talked me into slowly converting my term policy to a whole life policy. Luckily I chose to only do $240K at first have only been making payments for 12 months. I am in it about $3600 and have a cash value of $400. I already wrote him an email asking him to convert it all back to the term policy. He wrote back trying to talk me out of it and wanted to "meet up" for 30 minutes to look at some videos and statistics. I said no please convert it back to the term policy. I am currently only paying $42/month for the term policy to 80 which is currently a $760K policy. He has not responded and its been 3 days. Should I look at cancelling the term policy too? I feel like that is a good rate but I have definitely been wrong on a few things.
3. He talked me into own occupation disability insurance. I do not think this was necessarily a bad decision. I bought the first batch of $3145 in residency (I pay $141/mo) and the second batch of an additional $5075 when I became an attending (I pay an additional $105/mo for it). So its $8220 of coverage for $246/mo. I have declined further increases. From the podcasts, I understand the NWM does not offer the best "own occupation" coverage because its really only physician specific not specialty specific. Luckily I am an Internal Medicine physician so its not as big of a deal for me. Should I also look into completely cancelling the disability policy and looking elsewhere, or is this a good deal?
As you can likely tell, I am very flustered with NWM. I feel like the wool was pulled over my eyes. My financial advisor seems like a really nice guy, but being a nice guy doesn't mean he had my best interests in mind or that he knows what he is doing. I am severing all investment ties with him, but the bigger question is should I sever insurance ties as well?
I am on the right path now. I want to do this on my own from this point forward. I find it interesting and I can't get enough material read about it (actually I would rather listen). I actually listened to the WCI book on by audiobook (Audible app) and that was fantastic. Thanks in advance for your help!. I really appreciate it.
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