A product salesperson (insurance and securities) who is compensated entirely by the commissions on purchases, or a qualified financial advisor who may charge a fee for the time required to prepare any analysis and develop a report for your consideration.

There is certainly nothing wrong with a salesperson receiving commission on purchases. That is how people are generally compensated in the financial product area. After all, if you purchase a Certificate of Deposit at a local bank, you don’t for a minute believe that the tellers and officers are working for free. Their compensation is derived from the difference (you could call it a commission) between what the bank earns on its investments and what is credited to your account.

However, working with a financial advisor before making a purchase is more likely to leave you feeling informed and confident about a product without the pressure to buy, simply for the commission.

A qualified financial advisor can separate the advice stage from the actual purchase. What are the qualifications that you should look for in such a person? How do you go about finding and selecting a person who can help chart your path through the financial dilemmas?

The person you select should have:

  • Sufficient experience guiding personal financial affairs
  • Professional education, both initial and ongoing
  • Standing in recognized financial associations
  • Adherence to the developed professional standards
  • A commitment to client service and objectives
  • The capacity to help you fulfill your current and future needs
  • Sufficient staff, facilities and computer equipment
  • Ability to provide comprehensive analysis and ongoing services
  • An ethical posture
  • An ability to communicate effectively

Of all the requirements listed above, perhaps the most important is the capacity to communicate with you, to clarify your attitudes and to help you understand all the ramifications of the alternatives.

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Advisor Launchpad to provide information on a topic that may be of interest. Advisor Launchpad is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities offered through Lion Street Financial, LLC., member FINRA/SIPC. Investment advisory services offered through Lion Street Advisors, LLC. Fixed and traditional insurance offered through Feliciano Financial Group (FFG). Medicaid planning and consulting offered through Geriatric Care Solutions (GCS). FFG and GCS are not affiliated with Lion Street Financial, LLC.

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