Not exact matches
Indeed, the sale of
high -
commission annuities has been flagged as one of the more egregious ways that financial
advisors fail to act in their clients» best interests.
For instance, we want to know whether a financial
advisor recommending a particular product will receive a
higher commission than they would on an alternative.
Before this rule, too many retirement
advisors could legally steer clients to investments that generated
higher commissions and fees — too often undisclosed or hidden in fine print — while providing lower returns for clients.
That means some financial
advisors — basically, brokers and insurance agents - will once again be able to give conflicted investment advice by recommending
high - priced 401 (k) investments that pay them rich
commissions over less expensive - but comparable - alternatives on May 7, 2018.
Historically,
advisors have been compensated for the sale of variable annuity products on a
commission basis, which is believed to motivate
advisors to recommend products because of their
high commission value, rather than because they are in the client's best interests.
Investors pay
higher ongoing expenses and
commissions, a portion of this amount is routed by the fund to the
advisor in 12b - 1 fees,
commissions, soft dollars, shelf space and marketing support, and the fund family keeps its share as a cost of managing and marketing the fund.
Before this rule went into effect, an
advisor may have recommended financial products that are pretty good for you, but might have come with
higher fees or
commissions that benefit them.
She has given a TEDx talk and
high - level briefings at the White House, the U.S. Department of Education, and the Federal Communications
Commission, and she has served as an
advisor to the Corporation for Public Broadcasting and the NYC Department of Education.
These
advisors will probably recommend
high - cost mutual fund investments for your money so they too, will make a
commission on the fund sale.
That salesman who hides behind the «financial
advisor» title but is selling whole life insurance gets paid a huge
commission (as
high as 75 % of your first years premium!!)
I would not be surprised if your
advisor want to put you into «
high MER, actively managed» funds to increase the trailer
commissions paid.
Under a fiduciary standard, an investment
advisor would be strictly prohibited from buying a mutual fund or other investment because it would garner him or her a
higher fee or
commission.
An
advisor who is loyal to only his clients will not be swayed by outside forces to recommend investments with
higher commissions or payouts.
Keep in mind, though, that the
commissions and fees are much
higher when you work with an
advisor in person.
In Canada, independant
advisor are mostly 100 %
commission based and sell the funds with the
highest MER's.
In almost every case, you'll be dealing with a
commission - paid
advisor (which creates unnecessary conflicts of interest) and
high - cost mutual funds.
However, when you do it yourself and you do not pay a
commission to purchase through an investment
advisor, you pay yourself a very
high hourly wage for this relatively quick and painless process of purchasing directly from the mutual fund.
They're either getting the money to pay the
advisor's
commission through the
higher 12b - 1 and the redemption fee if you do redeem, or through the
higher 12b - 1 fee if you don't.
Most
advisors and life insurance agents are interested in earning the
highest possible
commission from the sale of life insurance because it is not a product that people purchase on a regular basis, so they may not have any additional revenues from you in the future.
A financial
advisor is interested in selling you the most expensive policy that he or she can, because they get paid the
highest commissions.
Keep in mind that an
advisor can still recommend a
high -
commission - based retirement product to you, but the DOL's newer, more stringent rules will make it harder for them to profit from it.
With so many (too many) entering into the practice of becoming consumers»
advisors in the real estate business, without the requisite practice; without the requisite background; without the requisite self - confidence; without the requisite detachment from the
commission income mentality, it is no wonder that people such as: the dishwashers; servers; factory workers; truck / cab drivers; teachers; office workers; in general, the young and middle - aged unemployed who can't get a job anywhere else (
high school drop - outs) etc. types of the world (none of whom are to be denigrated for their particular positions in the job market... except when they think that they are qualified to become Realtors after attending a few weeks of classes and memorizing answers to questions about which they have absolutely no hands - on experience with which to tie their memorized answers to), will willingly buy into paying someone else to professionally «augment» their individual «realities» on the internet.