Comments on: Should Financial Advisors Get Paid to Sell Products?

By: Finance Utopia

Finance Utopia — Thu, 18 May 2017 11:10:42 +0000

I love the post! It is thoroughly explained i would’t add anything more! Great!

By: How Much Money do YOU Need to Live On?

How Much Money do YOU Need to Live On? — Thu, 18 Dec 2014 23:25:58 +0000

[…] about how investment advisors that get paid to sell products (more salesman than investment advisors) upset me at Happy Simple […]

By: Selecting the Right Financial Advisor

Selecting the Right Financial Advisor — Sun, 10 Jun 2012 21:06:58 +0000

[…] Recently personal finance blogger extraordinaire Barbara Friedberg wrote this guest post for Happy Simple Living entitled Financial Advisors Who Get Paid To Sell Products Bother Me. […]

By: Yakezie Blog Swap Posts: Link Love Wednesdays » Financial Success for Young Adults

Sat, 09 Jun 2012 04:25:09 +0000

[…] Friedberg talks about how investment advisors that get paid to sell products upset her at Happy Simple […]

By: Investment Fiduciary

Investment Fiduciary — Wed, 13 Apr 2011 03:48:54 +0000

Barb,

At risk of sounding self promoting, I have a blog post explaining three types of “financial advisors” and how they get paid:

http://investment-fiduciary.com/2011/04/08/are-financial-advisors-required-to-disclose-fees/

Lisa,

A CFP is certainly a very qualified person. However, I know a CFP who sells over-priced life insurance and annuities. his CFP is not to help his customers, but to blindside them. A CFP does not mean that advisor is without conflict of interest. The best way to check if an advisor has conflict of interest is to read his firm disclosure at the SEC’s advisor directory – http://www.adviserinfo.sec.gov.

By: CA Karan Batra

CA Karan Batra — Sat, 09 Apr 2011 20:31:16 +0000

I believe the method of compensation based on asset management method is the best because in this case the consultants aim is to increase our profits as that is the only way his compensation can increase

By: JT McGee

JT McGee — Fri, 08 Apr 2011 19:38:02 +0000

In reply to Lisa. CFPs can and do still sell garbage, and any CFP knows it.

By: JT McGee

JT McGee — Fri, 08 Apr 2011 19:37:06 +0000

Barb, I couldn’t agree more.

As for the fiduciary duty to sell only what the advisor knows to be in line with their customers need, I don’t think CFPs step out of line here. HOWEVER, their firms often do…

So many CFPs sell funds loaded with 12-b1 fees simply because it is all they have available.

To be quite frank, I wouldn’t consider going to anyone with less than a CFP, but I wouldn’t immediately say that a CFP is any better than someone without one. It all comes down to what they have to sell you, and what they often have to sell are 12b-1 loaded funds, or double-fee target date funds.

Tying investment advisory to one of the worst (in my opinion) businesses on earth–insurance sales–was the final blow to what could have been a good business. If you’re serious about getting solid financial advice, go to a firm that is fee-only by the hour with CPAs/CFAs/CFPs on staff.