Financial advisers earn money when you buy an investment product. A 40% commission from the life insurance + mutual fund combo will give him a steady stream of income for as long as you continue to pay the premium. Stock brokers earn money when you buy and sell a stock. The more frequently, the better.
If you can see the problem here, that's good. You don't need this tip. But if you don't, let me tell you why...
Financial advisers and stock brokers are here to help you know where to put your money. But they earn money not on the percentages of the profit. They earn on the action you make. Your profit is irrelevant. They will earn either way. So if you win, they get money, if you don't, they still get money.
If a financial adviser or stock broker told you a tip where to invest, a VUL or a stock, always treat it as a caveat. There is no risk for him if he told you to invest here and there. But there is risk to you. Always, always remember that everything is an opinion. And everyone has their own interests. A financial adviser to meet a quota, a stock broker to make you trade frequently. None of those to make you rich.
That job falls in your hands. Its your job to profit and only you have that determination to make yourself profit in the market. I won't see stock brokers and financial advisers take a bullet for you just so you could profit. Or give you a money back for the money lost in your (or his) investment decision.
I'm not writing this to bad mouth financial advisers and stock brokers, I'm writing this for you, dear investor. Its your money, though many people seem to forget, we used to research for weeks to find the right refrigerator, but the decision ultimately comes to us when it comes down to it. Should we buy? Should we look for another one? Does this refrigerator benefits me in the long term? If we could only look at investing the same way.
Financial advisers and stock brokers have services to provide for you as an investor. They are there to help you meet your ultimate aim to profit in the market. Treat the financial adviser as you would treat a saleslady in the mall, she's there to tell you and help you about the product you want to buy and how they will benefit you. Treat the stock broker as the lady teller in your local bank, helping you with transactions such as depositing and withdrawing. Treat them with respect. But once you see them as someone who knows the key to wealth, you are in a very rude awakening... That key is you. Don't look outside. It is in your power.
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