What is a typical commision for a financial advisor?

Comments

1. Las Vegas Financial Adviser says:

   October 22, 2006 at 11:50 pm

   Financial Adviser

   Depending on the amount you are investing, your time frame for the investment and the type of investment you are looking at as well as who you use to transact the business.

   Online buying is cheaper but you get no advice.

   If you are just starting out, buy a good quality mutual fund from a local financial advisor that will spend some time with you to explain the basics to you.

   Then you have to decide which share class to buy. Class A will usually cost you 5% or more upfront with an additional operating expense of around 1% annually. Class C shares you pay no upfront but pay 1.5 – 2% annually.

   Good luck.
2. financial advisor says:

   October 24, 2006 at 9:10 pm

   Las Vegas Financial Advisor

   That depends. There are financial managers who are paid commission on what they sell, and there are those who charge an hourly fee to discuss the issues, draw up the plan, and suggest some places to go or people to see — otherwise leaving it to you to get others to fill the orders. Then again, some sell the stuff themselves, but since they are fee-based, and no commission charge on the product (like insurance or annuities) they ought to be proud to point out the improved interest, reduced load, etc. that you save by getting the financial product without a commission. Most of these are glorified insurance salesmen, but some of the really good ones are very much more.

   Back when I was in the business, the fee was a sliding scale and ran from $50 to $150 an hour (usually two-hours, an hour to talk and an hour to get that colossally slow early generation computer and dot matrix (or daisy wheel) printer to spit out the proposal. The guys with the initials behind their names, like chartered financial — this or that, they will charge extra and get you a spiffier set of proposals (likely with glossy pictures). If you are charged more than $250, then they darned sure better have something solid and good.
3. financial advisor says:

   October 27, 2006 at 11:16 pm

   Financial Advisor Las Vegas

   In my humble opinion, none if you are doing it right. Pay an advisor a set fee for unbiased advice and knowledge, and implement it yourself, through a low cost broker, like a Vanguard or your personal favorite.

   Full disclosure – I am such an advisor, and obviously believe this is the “right” way to do things. You be the judge. I’m sure others will differ.

   However, the fact remains – getting investing advice from someone on commission is like asking the fox to go to the henhouse to collect the eggs.

   Good Luck.