Trading My 401k for a Questionable Insurance Policy

I recently started seeing a financial advisor at First Command I met through a mutual family friend. The advisor is obviously very knowledgeable about retirement and investing, but I can't help but think the funds they are suggesting I invest in are more for their profit than my well-being.

They suggested a couple of accounts through Fidelity Advisor that have large percentages to invest in (some of the percentage goes to the advisor). The funds have a good history, but I can't tell if it's a smart move for me or if they are just trying to profit. Additionally, the advisor suggested a whole-life insurance plan.

They explained how they profit from it (basically, the cash value goes to them the first 2 years), but it still seems like a good plan to me.

Stay away from FirstCommand! They sell themselves as "military-friendly financial advisors," but in reality they're just commissioned salespeople.

I thought I was doing the right thing as a new officer for my financial future by promptly going down to the local First Command office and signing up for their investment and life insurance products (they sponsor events on base and their "advisors" are prior military, so they must be the good guys, right?), but it took me 12 years to realize I was being taken for a giant ride.

One of the funds they had me in was so awful that when I went to liquidate it as part of transferring my assets to Vanguard, I found out that the fund had lost so much in value and so many people put in redemption requests that the fund had stopped distributions (TFCIX).

I've since moved all my assets to Vanguard, but I still have $2K in TFCIX languishing back at FirstCommand because I still can't redeem those shares to this day. Bottom line is that you can do a lot better for yourself elsewhere; don't give these guys your hard-earned money.

A financial services guy told a lunch group that it made no difference whether people donated appreciated stock directly to a charity or sold it and donated the proceeds to charity. He claimed that, either way, “you still got the charitable deduction. ”While this is true, he completely ignored the capital gains tax that would be triggered when the person (rather than the charity) sold the appreciated stock. He could not comprehend that a direct donation of the appreciated stock to charity could save the donor from having to pay tax on that capital gain.

He was totally obsessed with the relatively minor charitable deduction on their tax return. I thought this was horrible advice and a disservice to anyone who followed his financial advice.