Always consider whether a planner's compensation requirements will interfere with his objectivity. Is he selling you a product because it's a good product for you or because he gets a larger commission on it? Some commission-based advisers associated with institutions such as brokerage firms or banks might have a quota they need to fill in order to keep their jobs, and the products they're pushing might not be the best for you.
If your adviser, broker or planner gets paid a commission, it does not necessarily mean that he or she isn't looking out for your best interests. But the potential for a conflict of interest is greater. With that in mind, don't be afraid to ask how much the planner is making off a product sale.
Lastly, don't forget about personality. Just as equally qualified doctors can have different bedside manners, so can financial advisers. Make sure that you feel comfortable with the way an adviser explains things to you. After all, it's your money.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more
Investors triple-teamed the market, boosting the Dow Jones Industrial Average (18,613.52), the benchmark S&P 500 (2,185.79) and the Nasdaq (5,228.40) to new records at the close Thursday
... Read more