July 5, 2011
Expert Offers Advice About Advisors
People often have a tough time deciding whether they would benefit from hiring a financial advisor.
J. Michael Collins, who specializes in consumer decisionmaking in the financial marketplace at the University of Wisconsin – Madison, attempted to answer some questions on the topic in an online interview by a Chicago money manager.
Most agree that fee-based advisors are preferable to those who earn commissions by selling products to their clients – being a broker or a salesman conflicts with giving advice. This troublesome conflict is eliminated by paying an advisor a fee for his or her work.
But even the prospect of hiring a fee-based advisor typically raises more questions than answers. What do advisors do? Is the service worth the fee an advisor charges? What exactly am I paying for?
Read here what Collins had to say on the topic.