Q&A: What are you charged for financial planning or investment advice?
Posted on January 24, 2012
Filed Under Financial Services
Question by j_m_camilleri: What are you charged for financial planning or investment advice? Many financial services providers tout their financial advice as being for free. But we all know nobody does anything for free. Aparently there are a bewlidering number of ways in which investment advisors make their money such as trading commissions, hourly frees, trailer fees, management fees, performance fees and so on.I would like to hold an online survey to gauge which methods most Y!Answers users come across and their views on each method or which method their prefer most.Thanks for taking the time to answer my question.
Best answer:Answer by keral
I am financial cunsultant and mutual fund distributor. i give advice free of cost and i can get low commission, if any one will invest in Mutual funds . i do it as social service
What do you think? Answer below!Comments
Many financial advisors will offer free consultations in the hope that you will decide to purchase investmenst products from them.
Although there are many commission-based advsiors who are excellent, there is a growing belief that using a fee-based advisor tends to eliminate any potential conflicts of interest. If an advisor charges a fee- either hourly or based on assets managed (i.e. 1% per year)- then there is no incentive to him to put you in high-commission products for his own gain. There should be no commissions with a fee-based advisor.
I pay nothing for advice and just use etrade for making any trades