Does It Matter How Your advisor is paid?

Does It Matter How Your advisor is paid? -
The short answer is no. And I'll tell you whyEllen Schultz The Wall Street Journal recently wrote the article "Big Five retirement mistakes." These include :. Do not pay for financial advice, invest in something you do not understand, support your adult children underestimate the costs of elder care and underestimate how much you'll need in retirement.
While I agree with most of what she said, I disagree with his comments about agents and advisors who accept commissions (instead of charge) and, in opinion, have a conflict of interest. Really! All professionals know that I always recommend what is in the best interest of their clients, regardless of the commissions. Yes, there may be a few "bad apples" out there, but they are rare and do not represent career agents, brokers and financial advisors who accept commissions.If Schultz had read the codes of ethics of the financial industry organizations such as the National Association of Insurance and Financial (NAIFA) or the Million Dollar Round Table, she would have seen that the members these organizations must put the interests of customers when making recommendations. commissions do not create a conflict of interest. Bad judgment made. Just look at Bernie Madoff.
In his case, there was no commission involved, only costs.And speaking of costs, the rich may be willing and able to pay the fees charged by investment advisers, but research has determined that those who earn what is considered income of the middle class feel the appropriate fee for advice would be $ 100. Councillor paying only typical a minimum of $ 2,500.Accepting commissions are not automatically a counselor unethical or create a conflict of interest. It allows many more people to have access to advice and products they can not otherwise learn about or heavy use.For those seeking impartial advice of an agent or advisor who adheres to a strict code of ethics, you can use this agent locator, which will give you the names of Naifa in your area.