
4. Commissions
Here’s a frequent complaint: Advisors who are paid commissions for the products they sell.
The more they sell, the better they do. Fiduciary standard this is not.
Other advisors only charge a fee based on a percentage of the assets managed. This aligns your goals with the advisor. Wealth managers get more only if they your grow assets.
For example, if you have $1 million in an investment account and the advisor charges one percent of assets, your annual fee would be $10,000. You are unlikely to see this—it comes directly out of your investment balance, not your bank account.
Does your advisor get paid on commissions? Is it time for a second look?