Try remembering any investment decision which you really regret. Recollect what motivated you take the decision. Remember what your expectations were, and how it turned out eventually.
It is painful, isn’t it?
You might curse the person who gave you that advice or sold you that product. But does it really help?
Good advice comes at a price. And you know it.
The question you need to ask yourself, how you prefer compensating your advisor. Is it through hidden commissions or transparent fees?
Cutting the cheque and paying the fees is always difficult. It is far more convenient to let the commission be taken out indirectly from your investments.
What one fails to realize is that with latter, advisors loyalty reside with the manufacturer and not you.
By paying fees directly, you would not only avoid potential conflict of interest but also hold the advisor accountable of his/her decisions.
Think again when you take your next investment decision. Are you talking to somebody’s representative or your own advisor?