They Saved $1.8 Million For Retirement. Then They Asked One Question Their Advisor Didn't Volunteer

Caroline Lubinsky

Sat, August 8, 2026 at 7:30 PM GMT+3 6 min read

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A Texas couple built up $1.8 million across two 401(k)s, a joint brokerage account and a small pension, and they're just two years from their planned retirement date. For the past several months, their longtime financial advisor has been recommending they move a significant portion of their nest egg into a fixed indexed annuity that could pay him an upfront commission of roughly 7%.

Neither of them had thought to ask how their advisor was compensated until a friend mentioned it in passing. That simple question could help them better understand whether their advisor's incentives align with their own. The issue is not necessarily the annuity itself. It's understanding how the recommendation fits their financial goals and whether the advisor has a financial incentive to recommend one product over another.

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Understanding Advisor Standards And Compensation

Financial professionals can be compensated in different ways depending on how they're registered and the services they provide. Broker-dealers making recommendations to retail investors are generally subject to the SEC's Regulation Best Interest, while registered investment advisers owe a fiduciary duty under the Investment Advisers Act that generally requires them to place clients' interests ahead of their own. Although both standards are designed to protect investors, they apply differently depending on the professional's role.

An upfront commission of around 7% on an annuity is substantial and worth understanding. It does not automatically mean the recommendation is inappropriate, but it does give investors a good reason to ask how their advisor is compensated and whether lower-cost or alternative strategies were also considered.

What To Check Before The Next Meeting

Before meeting with their advisor again, the couple can review his professional background using FINRA's free BrokerCheck tool, which shows registrations, licenses and any disclosed disciplinary history. If the advisor is also an investment adviser representative, they can verify that registration through the SEC's Investment Adviser Public Disclosure (IAPD) database.

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They should also ask whether the advisor acts as a fiduciary throughout the relationship or only when providing certain services. Some financial professionals are dually registered as both brokers and investment adviser representatives, meaning the legal standard that applies may depend on the type of advice or product involved.

Annuities Aren't Automatically Bad

Fixed indexed annuities can be appropriate for some retirees seeking principal protection and the potential for guaranteed lifetime income. Whether they're the right fit depends on the investor's goals, liquidity needs, time horizon and the specific features, fees and surrender terms of the contract.

With $1.8 million and retirement approaching, the couple may also want to compare the proposed annuity with other retirement income strategies before making a decision. They should also think about factors such as Social Security claiming strategies, tax-efficient withdrawals and, later in retirement, required minimum distribution rules that will eventually apply to their tax-deferred retirement accounts.

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Getting A Second Opinion Before Signing Anything

Before committing to any annuity, obtaining an independent second opinion can help provide additional perspective. Adviser Match connects consumers with vetted, fee-based financial advisors whose compensation is not tied to selling a specific investment product, making it easier to compare recommendations before making a major retirement decision.

Two years before retirement is an ideal time to understand exactly how your financial professional is compensated, ask thoughtful questions about any recommendation and make sure your retirement strategy reflects your long-term goals rather than anyone else's incentives.

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

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Realberry

Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

EquityMultiple

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

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This article They Saved $1.8 Million For Retirement. Then They Asked One Question Their Advisor Didn't Volunteer originally appeared on Benzinga.com