It Just Got Tougher to Know How Your Adviser Gets Paid


I told you months ago about what was going on at a website that had been popular with consumers. Let's make a plan dot org that now. Jason Zweig the financial writer says they have discontinued disclosing to consumers how people get paid. That are on their sites. You don't know who's getting kickbacks WHO's taking commissions. Who's putting you in step? That might be junked for you just because of what they're making. This is a terrible terrible problem for you. As a consumer. A lot of us don't really understand how the whole investing thing works behind the curtain. But you should know is there are a lot of people in the business who don't do the right thing by you. They may be very nice. People very personable but when it comes to money a lot of times somebody will smile at you and they're picking your pocket at the same time what you need to know. Is that when you were getting financial advice to somebody on what you should invest in if they are not a fiduciary you're at risk due. Sherry is somebody who legally is bound to put your interest first that what they sell. You recommend that you invest in. They're not getting commissions from they are only doing what they believe is right for. You know that if you're getting investment advice through an insurance agent that they are not going to put your interest I if you're getting investment advice from a full commission stockbroker. They are not going to put your interest. I if you're getting advice on what to invest from an investment part of a big bank. They are not going to put you. I if you hire an individual from firm they need to disclose to you how they make their money. If they make money for recommending something they got to take the trip to Hawaii for how many people they sold this that or the other two. They're not putting you first is best to pay for advice straight out and then deal with somebody who receives no commissions for anything they advise you to. I ask people over and over again when somebody calls me asking about investing well are you paying that person for advice or how do you? How's that person getting paid by your? They told you there. A fiduciary and virtually one hundred percent of the time people say. I don't know you need to know because you're working hard for the money. You have your working hard to live on less than what you make and the money you have to invest needs to be working for you for your future not for that person's future who puts you in something so they get to go in the fly-fishing trip.

Coming up next