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What You Need to Know About Your Financial Advisor Now! Wall Street Exposed – What You Need to Know About Your Financial Advisor Now!

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In the financial consulting and wealth planning business, there is a clear but undeniable fact that Wall Street has hidden as a “dirty little secret” for years. THE WAY YOUR FINANCIAL ADVISOR IS PAID DIRECTLY AFFECTS THEIR FINANCIAL ADVICE TO YOU! The dirty little secret is that THE WAY YOUR FINANCIAL ADVISOR IS PAID DIRECTLY AFFECTS THEIR FINANCIAL ADVICE TO YOU! By clicking here we get info about E.A. Buck Financial Services, Honolulu

You want (and, as a result, SHOULD EXPECT) impartial financial advice that is in your best interests. However, the reality is that 95% of the general investing population has no idea how their financial advisor is paid for their services. This is a horrific blunder, but it’s all too normal. For financial advisors, there are three basic compensation models: commission-based, fee-based, and fee-only.

Financial Advisors That Sell “Loaded” or Commission-Paying Products – These advisors sell “loaded” or commission-paying products such as insurance, annuities, and loaded mutual funds. You may or may not be aware of the fee your financial advisor earns on your purchase. I use the term “transaction” since that is precisely what commission-based financial advisors do: they facilitate TRANSACTIONS. You could not hear from them again after the transaction is completed because they’ve already received the majority of the commission they were going to get.

There is an implicit conflict of interest between the financial advice you receive and the fees these financial advisors obtain because they are paying commissions that may or may not be reported, and the amounts may differ depending on the insurance and investment products they offer. THEY HAVE A FINANCIAL INCENTIVE TO SELL YOU WHATEVER PAYS THEM THE HIGHEST COMMISSION IF THEIR INCOME IS Based ON TRANSACTIONS AND SELLING INSURANCE AND INVESTMENT PRODUCTS! That isn’t to suggest that certain commission-based advisors aren’t trustworthy and ethical, but this clearly shows a conflict of interest.

Here’s the true “dirty little secret” Wall Street doesn’t want you to know about fee-based financial advisors. Wall Street has sufficiently blurred the boundaries between the three ways your financial advisor can be paid that 99 percent of the investing public agrees that hiring a Fee-Based Financial Advisor is directly associated with “honest, ethical, and impartial” financial advice.

FEE-BASED MEANS NOTHING, in fact! Consider this: all fee-BASED compensation ensures that the financial advisor will earn both fees and commissions from selling insurance and investment products! So, while a portion of their compensation will be focused on a percentage of the assets they handle on your behalf, the “cream on the cake” is the commission income they will be able to receive by selling you commission-related investment and insurance products.

Isn’t that a clever marketing ploy? Start with the word “tax” to give the appearance that the compensation model is close to that of lawyers or accountants, then add the word “based” to mask their tracks when these advisors sell you items on commission!

FEE-ONLY Financial Advisor – A FEE-ONLY financial advisor is by far the most appropriate and impartial way to get financial advice. I emphasise the word “ONLY” since a true fee-only financial advisor CANNOT and Would NOT consider any kind of commission. Fees are paid in the form of hourly pay, project financial planning, or a percentage of funds handled on your behalf by a Fee-ONLY financial advisor.

There are no secret fees, and everything is written in black and white. Financial advisors who work on a fee-only basis believe in FULL DISCLOSURE of any possible conflicts of interest in their compensation and the financial advice and guidance they give to you.

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