I have a love-hate relationship with my industry. Great advisors do life-changing things… they meet vulnerable people… and get them to a place of safety. That vulnerability creates an enormous opportunity to take advantage of people. That’s the worst side of the financial planning industry… The way you pay your advisor matters!— Warren Ingram, Personal Financial Advisor - Galileo Capital
Financial advisors typically earn a living in one of two ways:
Commission on products they sell
- Billing clients for their time (e.g. at an hourly rate)
How you pay your advisor is vitally important, according to personal finance expert (Galileo Capital) Warren Ingram.
Their discussion focussed on:
Advisors pushing products
Advisors who push the "churning" of products
- “Transactional” relationship with advisors vs long-term relationships
For more detail, listen to the interview in the audio below (and scroll down for more quotes from it).
Research shows that more than two-thirds of clients are happy that their advisors are paid from a commission. Unfortunately, commissions are here to stay.— Warren Ingram, Personal Financial Advisor - Galileo Capital
An advisor that churns products should be banned from doing business.— Warren Ingram, Personal Financial Advisor - Galileo Capital
When you pay upfront you know with absolute certainty that the advice you receive is good for you.— Warren Ingram, Personal Financial Advisor - Galileo Capital
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