Comments on: Why Going to a Financial Advisor Might be Financially Disastrous http://www.americanconsumernews.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html Helping Smart Shoppers Save Sun, 21 Mar 2010 20:52:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carnival of Small Business Issues (CoSBI) - Edition 31 : Atlantic Canada’s Small Business Blog - IQI Strategic Management Inc. http://www.americanconsumernews.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html/comment-page-1#comment-2023 Carnival of Small Business Issues (CoSBI) - Edition 31 : Atlantic Canada’s Small Business Blog - IQI Strategic Management Inc. Tue, 18 Dec 2007 11:48:52 +0000 http://www.financeispersonal.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html#comment-2023 [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...] [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...]

]]> By: Debt Consolidation Lowdown » Blog Archive » Carnival of Debt Management #33 http://www.americanconsumernews.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html/comment-page-1#comment-1946 Debt Consolidation Lowdown » Blog Archive » Carnival of Debt Management #33 Mon, 17 Dec 2007 03:39:56 +0000 http://www.financeispersonal.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html#comment-1946 [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...] [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...]

]]> By: Carnival of Making Real Money - Issue #4 | InvestorBlogger http://www.americanconsumernews.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html/comment-page-1#comment-1907 Carnival of Making Real Money - Issue #4 | InvestorBlogger Sun, 16 Dec 2007 15:54:47 +0000 http://www.financeispersonal.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html#comment-1907 [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...] [...] Paulson presents Why Going to a Financial Advisor Might be Financially Disastrous posted at American Consumer [...]

]]> By: Charles H. Green http://www.americanconsumernews.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html/comment-page-1#comment-1840 Charles H. Green Sat, 15 Dec 2007 01:49:20 +0000 http://www.financeispersonal.com/2007/12/why-going-to-a-financial-advisor-might-be-financially-disastrous.html#comment-1840 I think you make too much of a big deal about the difference between commissioned planners and "fee only" planners. I had one of the latter, and ended up suing him (and getting him convicted in court of professional malpractice). The term "fee only" means their main source of income is "fees"--which are defined as an annual percentage of "assets under management," or the money they manage for you. So, "commission" means you pay a percent of what you give them; "fees" means you pay a percent of what you leave with them. Not surprisingly, the numbers are such that the income to the advisor ends up being about the same. The best guarantee in that industry is not credentials; I don't think they're worth much. Instead, look for reputation, references, and the inner sense that they have your best interests at heart. Not too many do, you'll know the others when you see them. I think you make too much of a big deal about the difference between commissioned planners and “fee only” planners. I had one of the latter, and ended up suing him (and getting him convicted in court of professional malpractice).

The term “fee only” means their main source of income is “fees”–which are defined as an annual percentage of “assets under management,” or the money they manage for you.

So, “commission” means you pay a percent of what you give them; “fees” means you pay a percent of what you leave with them. Not surprisingly, the numbers are such that the income to the advisor ends up being about the same.

The best guarantee in that industry is not credentials; I don’t think they’re worth much. Instead, look for reputation, references, and the inner sense that they have your best interests at heart. Not too many do, you’ll know the others when you see them.

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