Has the question of “How Do Financial Advisors Get Paid?” ever crossed your mind? This is a very important question to ask your financial advisor or the one you intend on hiring.
There are three ways through which financial advisors get paid; commission, fee-only, and fee-based. You need to get that information upfront as the client to understand how things work.
Which of the three is the best payment method? How does each affect you as the client?
In this episode of the Secure Your Retirement podcast, we’re helping you understand the different ways financial advisors get paid. We cover the importance of researching to understand why and how you will be paying the person managing your retirement plan.
In this episode, find out:
How commission works plus legitimate products that are commissionable
How the insurance industry pays financial advisors on commission
How an advisor receives payments from the different types of mutual funds
Always ask how the advisor will get paid from any commissionable-type product you purchase
How advisors get paid from Real-estate Investment Trust (RIT)
Why the regulations in the financial services industry cannot change to give you a better rate
How the fee-only method works and the three categories it operates in
How fee-based works as a combination of both fee-only and commission-based
The fiduciary plus his/her role in taking care of the client
“Once you decide to enter into a mutual fund or any commissionable-type product, be sure you do your research and ask the question.” - Murs Tariq
“If you’re working with a fee-based or even a fee-only advisor, any time there’s a conflict of interest, they have to disclose it.” - Radon Stancil
If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!