How is BLW Different from Stockbrokers and Financial Planners?
While stockbrokers and financial planners may be great people, they are salespersons. And, salespersons are compensated for activity, not performance. Their compensation structure is only tangentially related to your success as an investor. Registered Investment Advisors (RIAs), however, may charge a fee based on the amount of money they manage for you. If your investments go down in value, so does their fee. If your investments go up in value, so does their fee. The amount of fee they charge is directly correlated to the success you have as an investor. Therefore, fee-based advisors have more of a monetary incentive to help you achieve success in accumulating wealth than does a financial salesperson like a broker or planner. We obviously feel that employing an advisor who charges a fee is more beneficial than buying a product from a salesperson. Even if that salesperson is a great person, the monetary incentive is much stronger for fee-based advisors to execute trades profitably for t
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