Financial Planning? Something sounds fishy...

Drakeon

So, I just got a call from an acquaintance I worked with 2 jobs ago asking me if I would be ok with talking with him about some financial planning. Now, I don't remember this guy ever really having my phone number, so someone else had to have given it to him. We never really hung out or anything, so this call kind of came as a big surprise to me. The fact that it's a cold call screams fishy to me, something like Amway. Anyone have any idea if there's any scams out there regarding financial planning? Specifically, calling anyone you ever knew (or any facebook friend) and cold calling them to sell them financial planning?

darqness

My Northwestern Mutual agent found me through a friend of mine. Most likely they're an actual financial planner. They should be with a large company you recognize.

NotYou

Yea, he's probably just cold calling acquaintances to get some business.

Drakeon

Hmm, ok. Maybe I'll hear him out. Just wanted to make sure it wasn't some sort of pyramid scheme.

schuss

Yeah, people have to build their book. Just google some stuff on CFP's and junk first.

Deebaser

He's probably going to try and sell you life insurance.

Drakeon

Deebaser wrote: »

He's probably going to try and sell you life insurance.

Really? I straight up told him im unemployed atm, so he rescheduled for in a few weeks. If there's one thing I don't need right now, it's to be paying for life insurance.

Deebaser

Drakeon wrote: »

Deebaser wrote: »

He's probably going to try and sell you life insurance.

Really? I straight up told him im unemployed atm, so he rescheduled for in a few weeks. If there's one thing I don't need right now, it's to be paying for life insurance.

Well, since he's cold calling acquaintances and tier 3 friends of friends, that screams life insurance sales to me. It could be a pyramid scam, though. He probably isn't going around giving people awesome free financial advice without an ulterior motive.

Did he give you a company name? If not, look him up on linkedin.

Djeet

If it is Ameriprise then in my experience their new recruits aggressively go after friends and family. Not sure if that is part of the training or evidence that their fees are rather high.

It does feel like you're being pitched Amway or some specialty knives, especially when they are pitching their friends at social events.

We're here to drink alcohol and tell lies to one another, I don't want to hear about investments you're trying to sell.

The Raging Platypus

Djeet wrote: »

If it is Ameriprise then in my experience their new recruits aggressively go after friends and family. Not sure if that is part of the training or evidence that their fees are rather high.

It does feel like you're being pitched Amway or some specialty knives, especially when they are pitching their friends at social events.

We're here to drink alcohol and tell lies to one another, I don't want to hear about investments you're trying to sell.

As a former employee of Ameriprise Financial, I can say that this is completely true. They had us build out and project potential assets and commission from our family and friends, and pushed us to hard sell them as much as possible.

I was with the company before they were kicked out from the American Express family, so I'm not sure if they're still pushing in-house products or they've brought in other product families. That said, management was adamant about pushing Variable Life Insurance policies onto our clients, because not only did they dual function as an insurance AND an investment, but they also brought in a lot of profit in terms of fees churned up in the investment portion of the vehicle.

If your "friend" starts pushing VUL's onto you even after hearing about your financial situation, then I can safely advise you to politely decline his offer, and ask him not to follow up with you. The only insurance vehicles I could ever recommend to young twenty-somethings with some discretionary income left over was convertible term life insurance (especially if they were looking to start a family soon), and potentially a supplemental disability policy.

If he's still looking to see you even after mentioning your unemployment, then he's probably trying to look like he's busy in front of management. There's nothing they hated more than an idle salesman.