3 steps to prepare for fees in the U.S.

Make the transition easier by preparing now for the U.S. Department of Labor’s upcoming regulation. Having provided training and expertise to other advisors, Jason L. Smith, an 11-year MDRT member from Westlake, Ohio, recommends taking these steps to deal with the rule, which focuses on the clients’ best interests and is set to be applied April 10, 2017, with full compliance by January 1, 2018.

1. “Plug into a proven financial planning process where there are tools to document every step of the way, how it led to the recommendations you made, and why they are in the best interest of the clients over other options.”

2. “Make sure you’re partnering with an organization that is doing all the due diligence, and the math and science is proving your recommendations are in the best interest of the clients — that you’re not just selling a product to win a trip or a bonus. You have to make sure the process you’re following that leads to the recommendation is in the best interest of the clients. You have to ask yourself, ‘Can I prove that?’ So if the Department of Labor or the IRS or an attorney questions as to why you made that recommendation, you can confidently show it was not due to any incentive, bonus or compensation.”

3. “A lot of the financial planners out there are primarily doing investments, assets under management, and maybe they’re utilizing annuities as a financial planning tool for the income-planning process. I would also encourage you to educate yourself on life insurance. That’s an area that takes a little more work, but it’s in the best interest of the client in many situations, and it’s another way to diversify your revenue.”

Read 4 more steps to prepare for the DOL rule in the Resource Zone.

Written by Matt Pais, MDRT Content Specialist