There's a straightforward but undeniable truth in the economic visiting and wealth preparing market that Wall Road has held as a "dirty little secret" for years. That dirty small, and often overlooked key is THE WAY YOUR FINANCIAL ADVISOR IS PAID DIRECTLY AFFECTS THEIR FINANCIAL ADVICE TO YOU!

You would like, and deserve (and subsequently SHOULD EXPECT) neutral economic advice in your best interests. But the truth is 99% of the general investing public does not have any strategy how their financial advisor is compensated for the assistance they provide. This can be a tragic error, yet an all also frequent one. There are three simple compensation versions for economic advisors - commissions based, fee-based, and fee-only.Commission Centered Financial Advisor - These advisors sell "loaded" or commission paying services and products like insurance, annuities, and filled good funds. The commission your economic advisor is making on your transaction might or might not be disclosed to you. I say "transaction" since that's what commission based economic advisors do - they facilitate TRANSACTIONS. Once the deal is over, you may well be happy to listen to from their website again since they've already acquired the majority of whatever commission they certainly were likely to earn.

Because these advisors are compensated commissions which might or may not be disclosed, and the quantities can vary greatly on the basis of the insurance and investment products and services they promote, there's an inherent conflict of fascination with the financial advice given to you and the commission these economic advisors earn. If their money is dependent on transactions and selling insurance and expense products, THEY HAVE A FINANCIAL INCENTIVE TO SELL YOU WHATEVER PAYS THEM THE HIGHEST COMMISSION! That's not saying there aren't some sincere and ethical commission based advisors, but clearly this discovers a struggle of interest.  long island financial advisor