The Cost of Investing
Understanding how an advisor charges for their services is imperative in finding the right fit for your personal situation. Generally, most advisors either are compensated through upfront commissions for products they sell or on an ongoing basis through a percentage of investments that they manage on your behalf. Neither arrangement is necessarily better or worse. It is usually a good idea to discuss how an advisor gets paid, and why they chose that method. Also, if an advisor is getting paid upfront commissions, it may be beneficial to ask how often they change investments and if additional commissions will be charged when they do so. Cost is an important consideration when choosing an advisor, and they can vary substantially from one to another, so make sure you do your homework before hiring your financial professional.