There is a plague that runs through the streets of Wall Street, and that is greed. If you have a stock broker, financial advisor, or financial planner, that is commission base, fire him or her now. I don’t care if he has five, ten, or fifty years of experience. It is not in your best interest to have an advisor that is compensated on a commission bases.

I’m going to share with you some information that the public does not know or ever hears about. There are two types of investments advisor in the industry. The first one is the advisor who is calling you every month pitching a new stock or investment, and moving you from one investment to another. The other type is what we call the ghost advisor, this is one who meets with you sells you an investment and never calls you again.

The reason the first advisor is calling you all the time, is because he/she knows how much money you have to invest and they will not stop until they have all your money. Another reason is because he gets paid a commission on every transaction, it does not matter if it’s a buy or a sell he still gets paid. You have to understand that every advisor in this country is commission base, there is no salary. Another reason is if he isn’t generating commissions for his manager and the company he works for, he will be fired. I want you to ask yourself this one question, if the investments your stock broker is recommending to you… are so good, does he own them him self. The truth is that your advisor is recommending an investment that the company he works for is telling him to sell.

The next type of advisor in the industry is the ghost advisor the one that disappears once they sold you an investment and never calls again. I have met with people who would tell me that they hadn’t heard from their advisor in 10 years. Now why would an advisor not call you for 10 years, it’s because he/she knows that you don’t have any more money to invest and they will not be receiving anymore commissions off of your investments.

Now you may be saying to yourself this isn’t going on at the company I’m with, because they care about me and my family. Trust me this goes on at Merriyll Lynch, Smith Barney, Morgan Stanley, Raymond James, etc…… it does not matter what company you’re investing with… they all have these types of advisor. From the first day a new advisor starts with a company they are trained by the industry to generate as much commission as possible, by saying what ever and doing what ever to get new clients or current clients to invest. This is how brokerage firms make money, and it is through their sales force that revenues are generated. Don’t take my word for it just go to www.mywealthpuzzle.com and look for yourself under the “Is This Your Broker” tab.

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This entry was posted on Wednesday, March 21st, 2007 at 2:57 am and is filed under Uncategorized, Stock Market, Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.