There's an easy but undeniable reality in the economic consulting and wealth planning industry that Wall Road has held as a "filthy little secret" for years. That dirty little, and often overlooked secret is THE WAY YOUR FINANCIAL ADVISOR IS PAID DIRECTLY AFFECTS THEIR FINANCIAL ADVICE TO YOU!
You need, and deserve (and consequently SHOULD EXPECT) neutral financial guidance in your absolute best interests. But the fact is 99% of the general trading community does not have any idea how their economic advisor is compensated for the assistance they provide. This can be a destructive oversight, however an all also common one. You can find three basic compensation versions for economic advisors - commissions centered, fee-based, and fee-only.
Commission Based Economic Advisor - These advisors offer "loaded" or commission spending products and services like insurance, annuities, and packed mutual funds. The commission your economic advisor is earning in your transaction may or may not be disclosed to you. I say "transaction" because that's what commission centered economic advisors do - they aid TRANSACTIONS. When the exchange has ended, you may well be lucky to listen to from their store again since they've previously acquired the majority of whatever commission they certainly were planning to earn.
Because these advisors are compensated commissions which may or may possibly not be disclosed, and the amounts may vary on the basis of the insurance and investment services and products they provide, there's an inherent conflict of fascination with the financial assistance provided for you and the commission these financial advisors earn. If their income is influenced by transactions and selling insurance and investment products, THEY HAVE A FINANCIAL INCENTIVE TO SELL YOU WHATEVER PAYS THEM THE HIGHEST COMMISSION! That's not saying there aren't some straightforward and ethical commission based advisors, but obviously this identifies a conflict of long island financial advisor!.
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