Comments on: How Ponzi Schemes Prey on Personal Relationships http://www.investorwatchdog.com/how-ponzi-schemes-prey-on-personal-relationships Timely financial educational resource information is your best defense against investment schemes & scams Wed, 01 Feb 2012 21:35:24 -0800 http://wordpress.org/?v=abc hourly 1 By: Jack Waymire http://www.investorwatchdog.com/how-ponzi-schemes-prey-on-personal-relationships/comment-page-1#comment-790 Jack Waymire Thu, 14 May 2009 20:22:35 +0000 http://www.investorwatchdog.com/?p=46#comment-790 Knowing how advisors are compensated helps investors determine if they are talking to a sales representative or a "real" financial advisor. Sales reps are compensated exclusively with commissions for the sale of company or third party investment and insurance products. They are not paid by investors to help them achieve their financial goals, nor are they compensated to provide ongoing services. Advisors are compensated with hourly, fixed, or asset-based fees. These payments come direct from investors or their accounts. The appropriate way to pay for financial advice is with a fee. Knowing how advisors are compensated helps investors determine if they are talking to a sales representative or a “real” financial advisor.

Sales reps are compensated exclusively with commissions for the sale of company or third party investment and insurance products. They are not paid by investors to help them achieve their financial goals, nor are they compensated to provide ongoing services.

Advisors are compensated with hourly, fixed, or asset-based fees. These payments come direct from investors or their accounts. The appropriate way to pay for financial advice is with a fee.

]]> By: Lee http://www.investorwatchdog.com/how-ponzi-schemes-prey-on-personal-relationships/comment-page-1#comment-4 Lee Wed, 18 Feb 2009 02:41:54 +0000 http://www.investorwatchdog.com/?p=46#comment-4 I'm sure there are some very easy questions that investors could ask potential advisors that would help screen them to see if they are ethical and willing to provide disclosure for compensation, etc. I guess the first thing is getting consumers/investors to understand how advisors are compensated. Most people don't know the difference between commissions and fees. I’m sure there are some very easy questions that investors could ask potential advisors that would help screen them to see if they are ethical and willing to provide disclosure for compensation, etc.

I guess the first thing is getting consumers/investors to understand how advisors are compensated. Most people don’t know the difference between commissions and fees.

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