November 23, 2013
The local financial advisor is almost always a fee-based salesperson. What does this mean? Options?
The local financial advisor is almost always a fee-based salesperson. What does this mean? Options?
It means that the salesperson gets paid based off of commissions. Because of this, he/she has a conflict of interest and should be avoided. Instead, you should go to Vanguard and invest in no-load index mutual funds.
Well said, Katherine. Fee-based means multiple types of compensation options for the salesperson and commissions almost always will fall under that umbrella.
Just as Katherine stated, this causes a conflict of interest with the products and services they recommend. Stay away! Instead, go to Vanguard.com and educate yourself on those very cheap index mutual funds that eliminate commissions and the salespeople who earn them. You can learn more on this subject by reading the wonderful book, The Little Book of Common Sense Investing by John Bogle. Knowledge is POWER!!!!
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