The following article appeared in today's print edition of the WSJ.
Your Financial Adviser Doesn’t Want You to Know About These Conflicts
Some examples:
Your Financial Adviser Doesn’t Want You to Know About These Conflicts
Some examples:
Still, the fee-based structure can tempt advisers to make recommendations that maximize a portfolio balance, even when doing so isn’t in a client’s best interest, according to academics and researchers. In one example, people who pay advisers portfolio-based fees claim Social Security earlier than what is often considered ideal, and at the same age as those who aren’t getting any advice at all.
Eliminating debt was once considered a key part of preparing for retirement. ... Consider someone with a $500,000 mortgage and a $1 million portfolio, who pays his or her adviser a 1% annual fee, or $10,000. If the client withdraws $500,000 from the portfolio to eliminate the mortgage, the account balance and adviser’s pay halve.
Some fee-based advisers shy away from annuities, including a type some economists recommend.
An immediate annuity requires a retiree to pay a lump sum to an insurance company in return for a fixed income for life, often an irrevocable move. Currently, a 65-year-old man who wants $3,000 a month for life would pay about $480,000.
Statistics: Posted by Cocoa Beach Bum — Fri Apr 05, 2024 10:04 am — Replies 2 — Views 322