09-23-2021, 02:49 PM
I see this advertising pitch and it is a bit of a scam.
1. Doesn't matter if the advisor/broker makes money on sales commission up front or based on your earnings. What matters is the total amount they end up taking. They could "do better when you do better" by taking a lot higher commission on your earnings than they would have out of your initial investment.
2. When you near retirement, or when you child starts college, or whatever your investment goal is you should move your money from higher risk growth investments to lower risk investments that have lower returns. If a broker/advisors income is based on your returns then they might push you to stay in higher risk investments to insure their income instead of considering your investment goals.
1. Doesn't matter if the advisor/broker makes money on sales commission up front or based on your earnings. What matters is the total amount they end up taking. They could "do better when you do better" by taking a lot higher commission on your earnings than they would have out of your initial investment.
2. When you near retirement, or when you child starts college, or whatever your investment goal is you should move your money from higher risk growth investments to lower risk investments that have lower returns. If a broker/advisors income is based on your returns then they might push you to stay in higher risk investments to insure their income instead of considering your investment goals.
