The Importance of Independent Advice
Know the difference between independent advice and independent advisors.
January 15, 2009
by Ed Drake, MSFP, CFP
Investors are better off when the receive independent advice. But the concepts of independent advice and independent advisors are very confusing to them. For example, most investors don't know the importance of independence or how to measure the objectivity of the advice or sales recommendations they receive from their advisors. Independence is further obscured by companies and advisors who have something to hide. They don't want investors to know their advice is tainted by self interests that increase company profits and advisor incomes. It's safe to say they are very skilled at hiding information they don't want investors to have.
Length: 2 page (PDF 1074 kB)