Finding Your Financial Advisor

There is a simple but undeniable truth in the financial consulting and wealth preparing market that Wall Block has held as a “filthy small secret” for years. That filthy small, and usually ignored secret is THE WAY YOUR FINANCIAL ADVISOR IS PAID DIRECTLY AFFECTS THEIR FINANCIAL ADVICE TO YOU!

You would like, and deserve (and therefore SHOULD EXPECT) unbiased financial advice in your best interests. But truth be told 99% of the general investing public doesn’t have thought how their financial advisor is compensated for the guidance they provide. This is a destructive error, yet an all too frequent one. There are three standard compensation designs for financial advisors – commissions based, fee-based, and fee-only. west palm beach financial advisor

Commission Based Financial Advisor – These advisors promote “loaded” or commission paying products like insurance, annuities, and filled common funds. The commission your financial advisor is making in your transaction may possibly or may not be disclosed to you. I say “transaction” since that’s what commission centered financial advisors do – they aid TRANSACTIONS. Once the exchange has ended, perhaps you are happy to know from their website again because they’ve currently attained the majority of whatever commission they were going to earn.

Because these advisors are compensated commissions which may or may possibly not be disclosed, and the quantities can vary based on the insurance and investment products and services they sell, there’s an inherent struggle of fascination with the financial assistance given to you and the commission these economic advisors earn. If their revenue is determined by transactions and selling insurance and expense items, THEY HAVE A FINANCIAL INCENTIVE TO SELL YOU WHATEVER PAYS THEM THE HIGHEST COMMISSION! That’s not to say there aren’t some honest and honest commission based advisors, but obviously this recognizes a struggle of interest.

Price Centered Financial Advisor – Here’s the true “filthy little secret” Wall Block doesn’t need you to know about. Wall Block (meaning the firms and companies involved in buying, selling, or controlling assets, insurance and investments) has sufficiently blurred the lines involving the three methods your economic advisor might be compensated that 99% of the investing community feels that employing a Fee-Based Financial Advisor is directly correlated with “honest, moral and unbiased” financial advice.