Salesperson or Independent Advisor

For those of you who have someone managing your investments, do you know how they are compensated?  Seriously, in black and white numbers, how much is that person who is managing your investments making off of your account and the investments that he or she has recommended?  Have you ever asked?  Do you care?  You should.

 

In the investment management profession, you have access to two options (if you are going to outsorce your money management to someone).  You may engage a broker or an independent advisor.  Brokers and independent advisors DO NOT provide the same services. 

Brokers are paid representatives of manufacturers of financial products.  Their job is to gather assets for their firms by SELLING PRODUCTS that their firms manufacture or otherwise want to peddle to the consuming public.

INDEPENDENT Investment Advisors provide INDEPENDENT evaluation of investments and give unbiased personal finacial advice.  Brokers are paid by their companies; INDEPENDENT advisors are paid by their clients.  INDEPENDENT Registered Investment Advisors like us, www.richinvests.com , receive no compensation from the investments that they select for their clients.  They have no conflict of interest. 

So if you outsourced the management of your investments to someone, you may find it insightful to have a conversation with them on how they are compensated and make money.

Best returns,

Matt