There are total 310,000 Financial Advisors. Only 5,000 are real.
Fidelity Institutional Asset Management estimates there are about 310,000 so called Financial Advisors in US. 90% of them are actually Brokers. 10% are Registered Investment Advisors (RIA). Simple so far? Here is the kicker. About 84% of RIA are also Brokers! That leaves about 1.5% of 310,000 or about 5,000, who are just RIA.
Not asking this simple question to your Financial Advisor is a BIG MISTAKE!
Ask your Financial Advisor how he or she is getting paid. In particular, find out:
- Is your Financial Advisor getting paid for financial advice and commission for recommending specific products?
- Sometimes Financial Advisor may not be getting “commission”, instead could be getting “consulting fee”.
- Is your Financial Advisor charging you twice– one for Financial Advice and again for recommending “suitable portfolio”?
Wish there was a more transparent way to invest?
Single-family rentals is a step in right direction but completely wrong strategy. Passive Real Estate investing is the right strategy. I don’t know anything else which simultaneously secures financial future from market volatility, provides additional income today, and improves lives of people who need housing.
P.S. High-paid professionals are always wondering where to invest their savings. They don’t want to take more risk with stocks because they already have lot of money invested in stock market. Not knowing where to invest, they end up with lazy money sitting in bank.
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