Insurance Agent or Financial Advisor: Who Should You Trust?

When it comes to planning your retirement, the person giving you advice matters just as much as the advice itself. But here’s what most people don’t realize: not all financial professionals are the same — and who you hire can make a massive difference in the safety and longevity of your retirement income.

In this post, we’ll break down the key differences between financial advisors and insurance agents, how each gets paid, and how to choose the right fit for your goals.

Financial Advisor vs. Insurance Agent: What’s the Difference?

Think about this: would you go to a dentist for a heart issue? Of course not. You’d seek out a heart specialist. The same logic applies to your retirement planning. Different financial professionals have distinct specialties.

Financial advisors are typically investment-focused. They specialize in growing assets through stocks, bonds, mutual funds, and other market-based investments. Their compensation usually comes from a fee — often around 1% of the assets they manage for you — or a flat planning fee.

Some financial advisors are fiduciaries who must act in your best interest when managing investments. Others operate under a lower “suitability standard,” meaning they only need to recommend something that’s suitable, not necessarily best.

Insurance agents, on the other hand, are protection-focused. They’re licensed to offer annuities, whole life insurance, and long-term care coverage — tools designed to create guaranteed income and protect what you’ve built. Insurance agents are paid by the insurance companies they represent, not directly from your account.

How Do Fees and Compensation Work?

It’s critical to understand how your advisor or agent gets paid because this can shape their recommendations.

Financial advisor fees:

• Typically 1% AUM (assets under management), so managing $500,000 could cost $5,000 per year.

• Flat or hourly planning fees ($1,500–$5,000 or $200–$500/hour).

• Additional hidden fees like fund expense ratios (0.5%–2%) and wrap fees.

Insurance agent compensation:

• Paid by the insurance company when you buy a policy.

• No direct out-of-pocket fees to work with them.

• All terms and costs are outlined in your contract, so you know exactly what you’re paying for.

So, Who’s the Right Fit for You?

Your personal goals should guide your choice. If you’re younger and focused on growth — and comfortable with market ups and downs — a financial advisor may make sense. If you’re nearing or in retirement, your priority may shift to protection and income guarantees, making an insurance agent or retirement income specialist a better fit.

Most retirees need a blend of both growth and protection strategies.

5 Smart Questions to Ask Before You Hire

Before you hire any financial professional, ask:

1. Are you a fiduciary? (Do you act in my best interest?)

2. How do you get paid? (Fee, commission, or both?)

3. What are you licensed to offer? (Investments, insurance, or both?)

4. Who do you typically work with? (Do you specialize in retirement income?)

5. What’s your process for working together? (What can I expect from start to finish?)

The answers will tell you a lot about whether they’re the right partner for your retirement goals.

How I Work

I’m an insurance-based retirement income specialist focused on safe money strategies. I act in my clients’ best interest, and I’m paid by the insurance companies — so there’s no fee to work with me directly. My job is to help you protect what you’ve built and create predictable income so you can retire financially relaxed.

We start with a Retirement Income Q&A Call to get to know each other, discuss your goals, and see if I have solutions that fit your needs.

Ready to Retire Financially Relaxed?

My goal is to help you eliminate the fear of running out of money, avoid costly mistakes, and retire with confidence and security. When you have safe, predictable income in place, you’re free to actually enjoy retirement — not just worry your way through it.

👉 Learn more at the Retirement Income School™.
📞 Want to talk? Schedule a Retirement Income Q&A Call — I’d love to support you.

This is your chance to learn what you wish school had taught you so you can learn how to keep your money safe and make it last, so you can enjoy retirement!