How do financial planners earn their money?

how much do financial planners earn

Asked by Judi ( 38627 ) January 16th, 2014 from iPhone

I rolled over my 401 K to an IRA when I left a job a few years ago. It has grown a little bit but hasn’t doubled or anything. (It’s been 6–7 years.)

11 Answer s

DWW25921 ( 6380

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Two different ways.

Some take a percentage of assets (and a percentage of each trade). I call them bloodsucking leeches, because it is in their interest to keep churning your account, even if YOU don’t make money.

The other type is a flat fee plan, where you pay a flat fee and because of that, your advisor is supposed to be more attentive to YOUR needs.

There’s a new flutherite here who goes by the name WEALTHADVISOR; he will probably weigh in as well.

There is a

trade organization of financial planners whose HQ i in Charlottesville, VA – look them up as well for industry informatiom.

elbanditoroso ( 18186

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I think the lack of transparency in fees for financial planning and retirement fund management has been an issue, because I do hear it referenced in advertising, and when our company changed 401(k) managers last year, the mentioned that in the presentation. As mentioned above, you want to ask whether they earn commission, percentages, or a flat fee.

I have sought financial advice numerous times during my adulthood, and most have seemed to wanted to sell me things; and when they learned I was of modest income, they wanted nothing to do with me. My observation has been that they are only glorified salespeople and not interested in actually helping people (other than the 1% ) manage their money better.


Category: Personal Finance

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