There are a lot of different ways financial advisors can be remunerated. They could, for example, earn commission on products they sell. Or, just like a doctor or lawyer, you could pay them for their time.
The way you pay your financial advisor matters a lot, says Warren Ingram, Financial Advisor at Galileo Capital, in an interview on 702/CapeTalk’s The Money Show.
Ingram discusses the following points (and more):
Churning of products
- Transactional relationships vs. long-term relationships
Scroll down to listen to the audio.
Research shows that more than two-thirds of clients are happy that their advisors are paid from commission. Unfortunately, commissions are here to stay.— Warren Ingram, Galileo Capital Financial Advisor
An advisor that churns products should be banned from doing business.— Warren Ingram, Galileo Capital Financial Advisor
When you pay upfront you know with absolute certainty that the advice you receive is good for you.— Warren Ingram, Galileo Capital Financial Advisor