But there is no free lunch. You might not be paying an hourly fee for financial advice, but you still are compensating the adviser. The fees are built into the investment, so people don't realize how much they are paying and how these fees drag down investment returns.
This doesn't mean that commission-based advisers are incompetent or unethical, but they do have a conflict of interest, and their inventory could be limited largely to products managed by their firm.
Fee-only advisers, by contrast, don't earn commissions, are more likely to suggest low-cost investments from a larger variety of providers and will generally take a more holistic look at your finances.
Source: Ellen Schultz, Wall Street Journal
The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
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D2 Capital Management is a Member of the Southside Businessmen's Club and the Beaches Business Association
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