Caveat Emptor

Below is a link to an article from Smart Money.  The article discusses a study in which undercover actors made 300 visits to Boston-area financial advisers and banks to obtain help on how best to manage their portfolio of investments.

So, what happened?  Well, as you might expect, the advisers made recommendations beneficial to the advisers.  But that is to be expected.  The business model of these large institutions is to tie compensation to revenue and revenue is best generated through high fees.

The conclusion reached by the research is that everyone should understand how their adviser is being paid.  Those advisers that are not fee-based planners will be driven by commissions and management fees.  Those that are fee-based, and thus looking after your best interest and not theirs, are still expensive.  The fees these planners charge could easily out way the benefits of a planner.

Our approach is to give our members all the tools available to those using a fee-based retirement planner, accessible on their own time and not that of the planners, at a very low cost, a cost that is very small relative to the benefits of enhanced annual returns. And, of course, like the fee-based planners, we have you best interest in mind at all times!

http://www.smartmoney.com/invest/stocks/financial-advisers-flunk-undercover-sting-1333374512622/

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