June 7, 2013
A conflict of interest must be avoided when using financial “experts.” What does this mean? How?
A conflict of interest must be avoided when using financial “experts.” What does this mean? How?
When you go to a financial “expert” you want to get the best advice to save the most money. The financial “expert” on the other hand will most likely want to make as much money as possible. This means that they will try to get you to pay as much money toward fees as possible. This is not in your best interest so that creates the conflict. This can be avoided by becoming your own financial expert.
Well said, Thomas. Let’s take a look at the current financial landscape. Most people in the financial industry have a conflict of interest with the information they provide the average person. They are commission-based salesmen who are compensated based on the products and services they ultimately recommend. NEVER take financial advice on a product when the salesman has a conflict of interest.
Thomas is right in telling us to be our own financial experts. We can do it, but it takes a good education received by teachers (Eric Tyson, Jonathon Clements, and Jane Bryant Quinn would be three) followed by action to make this happen. Start today by reading Personal Finance for Dummies by Eric Tyson. YOU are the answer!