How To Stop Them From Taking Your Money

103 36
Financial advisers, and the financial institutions which they are affiliated with, are helping themselves to your money with your full consent.
It's called trailing commissions.
(Sometimes it maybe described as ongoing fees paid on a percentage basis).
Every financial product from superannuation, home loans, managed funds, life insurance and investment loans, pay out trailing commissions.
These fees and commissions come straight out of your investment portfolio.
Initial commissions are relatively large amounts.
Renewal or 'trail' commissions are usually paid as well as or instead of Initial commissions; these are regular monthly/quarterly/annual payments.
Each payment of trail commission is a relatively small amount in itself but as they are paid throughout the life of the policy they become substantial in totality.
The Australian Government has identified through recent cases and surveys the impact of commissions on investment decisions.
With high profile cases of investors losing significant amounts of wealth due to commission driven practices, it is important for the public to be aware of the amounts paid.
The online media also offered loads of information and alternatives that simply wait to be discovered.
It really makes the roles of a broker unnecessary.
Well, there are some reasons why you should avoid purchasing commission funds.
There are several differences you can avail between these two types of funds.
Here are the reasons why you must avoid buying commission funds.
The commission represents fees, which are paid to the salesman, that has succeeded to persuade investors for putting the money in specific managed fund.
Money that you pay in form of the commission will not reach fund manager or investment advisor.
Do you know how much of your money is being paid out in trailing commissions and unfair fees charged on a percentage basis of your investments and/or loans? The following table is a brief summary of some of the most commonly purchased financial products affected by unfair fees and trailing commissions.
On average, over $2000 per year is paid out by investors/buyers in fees and commissions.
Most people wouldn't mind paying if they were receiving ongoing advice and service from the advisers and the product providers.
But, the reality is that once you've made your financial purchase you never hear or see your adviser again.
And, this is exactly the reason why you should stop them from receiving these trailing commissions and unfair fees.
However, the barriers have been overcome allowing the client to receive the commissions that are inbuilt in products as refunds.
Furthermore, they are not required to sell or terminate existing financial products only change your financial adviser.
Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.