2. Their commissions

Many consumers are under the impression that their financial advisor only makes money by charging a fee for their services. However, in most cases, this is untrue. Many financial planners also make commission and earn special bonuses depending on their sales.

They just don’t make money on the fees they charge for your transactions and for their services.  This isn’t necessarily a bad thing, unless, the advisor isn’t comfortable disclosing how they are paid.

3. They pass your financial plan to others

This is the biggest hidden fact in all of financial advising and planning.  People who are trying to learn the business – secretaries and assistants, do most of the work on your portfolio.  You may feel completely comfortable with the investment planner you just signed up with, but little do you know, he is basically a glorified salesman.

Most of the works of Financial Planners are outsourced to a secondary firm, or even freelancers. The biggest concern is that your financial future isn’t really in his hands as promised; your future is jeopardized, making it a corrupt act on the part of financial and investment planners or advisors.