10 Questions to ask a Financial advisor
Compare your options & get to know your advisor
When planning for retirement, it pays to team up with the right financial partner. Perhaps you are considering other financial products for your retirement dollars, so how can you know if Scarborough is the best option for you?
Conducting a simple comparison can help. Here’s a list of ten important questions to ask a financial advisor. Compare others to Scarborough Alliance. We think the answers will speak for themselves, and you’ll see why thousands of members have selected the IBEW Local Unions Savings & Security Plan.
Questions to Ask |
Scarborough Alliance |
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| 1. | “What do you use for a Fixed Income Fund?” | In addition to the fixed income options available elsewhere, Scarborough offers a Stable Value Fund with higher rates than a money market fund and does not fluctuate in value like a bond fund.1 |
| 2. | “Are you free to select funds from any fund family, and what is your process for monitoring the funds?” | Scarborough is independent and free to select from the best funds from any fund family. All funds are reviewed quarterly. |
| 3. | “What are your up-front sales charges and commissions?” | The Plan funds have no sales charges or commissions. |
| 4. | “If I am not satisfied for any reason, can I transfer my money to another company at any time without any withdrawal charges? | Yes. There are no withdrawal or surrender charges; your account assets are available at any time. |
| 5. | “What would my total annual expenses be? How much do you get paid?” | The Plan’s total annual expenses average 1.10%.2 This includes Scarborough’s annual fee of 0.70%. |
| 6. | “Do you get paid differently to sell one investment over another?” | No. Scarborough believes that our recommendations with only your best interests in mind. Therefore, Regional Managers are compensated the same amount regardless of the product. |
| 7. | “If I retire at 55 or older, can I make withdrawals without IRS penalties or restrictions?” | Yes. As a qualified retirement plan, you are allowed penalty-free withdrawals with no restrictions if you retire during the year you reach age 55 or older. |
| 8. | “Can I take a loan from my retirement account?” | Yes. You may borrow up to half of your account value with a maximum of $50,000.3 |
| 9. | “How long have you been working with union members?” | Scarborough has been the trusted retirement planning partner for thousands of union members in 48 states since 1970. |
| 10. | “Can I talk directly to a retirement planning specialist when I need to?” | Scarborough’s toll-free number is always answered by a live person ready to answer all of your questions during regular business hours. We can also provide contact information for the Regional Manager in your area. |
If you need assistance getting comparative information, call us at (800) 223-7608 and tell us the name of the company and funds recommended and we can help you make the comparison.
1. An investment in the Stable Value Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any federal agency. Stable Value Fund benefits are subject to the claims paying ability of the underlying assets and wrap providers of the Stable Value Fund and, while the portfolio seeks to provide a stable unit price, it is possible to lose money.
2. Represents the weighted average of gross expenses as disclosed in prospectuses based on the plan investment allocation as of 12/31/2019.
3. Failure to repay a loan may result in a taxable event and be reported to the Internal Revenue Service.
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