“Your financial advisor probably gets a commission. It’s a huge problem’

“Free” advice from your advisor can cost you dearly. Pay on time, warns personal finance expert Warren Ingram.

I have a love-hate relationship with my industry. Good counselors do life-changing things…they meet vulnerable people…and bring them to safety. This vulnerability creates a huge opportunity to take advantage of people. It’s the worst part of the financial planning industry… How you pay your advisor matters!

Warren Ingram, Personal Financial Advisor – Galileo Capital

pixabay.com

Financial advisors generally earn their living in two ways:

How you compensate your advisor is vitally important, according to personal finance expert (Galileo Capital) Warren Ingram.

The Money Showit is Bruce Whitfield asked Ingram to explain why you should pay your counselor the same way you would pay, say, your doctor:

Their discussion focused on:

  • Advisors pushing products

  • Advisors who push the “churning” of products

  • “Transactional” relationship with advisors vs. long-term relationships

For more details, listen to the interview in the audio below (and scroll down for more quotes).

Research shows that more than two-thirds of clients are satisfied that their advisors are paid from a commission. Unfortunately, commissions are here to stay.

Warren Ingram, Personal Financial Advisor – Galileo Capital

An advisor who churns products should be banned from doing business.

Warren Ingram, Personal Financial Advisor – Galileo Capital

When you pay upfront, you know with absolute certainty that the advice you receive is right for you.

Warren Ingram, Personal Financial Advisor – Galileo Capital

Do you like The Money Show, but miss it sometimes?

Receive the best excerpts every day by email, right after the end:

This article first appeared on 702: ‘Your financial adviser probably gets a commission. It’s a huge problem’

More MyMoney online

Learn more about personal finance with Warren Ingram

About Mitchel McMillan

Check Also

Web3 technology company Reltime enters Southern African markets that could reach over $80 billion in revenue by 2025

Innovative and inclusive strategic partnership to empower people and businesses while accelerating and leading the …