Quote:
Originally Posted by CCc girl
Thanks BB. If the fee only guy only gets his fee, then how is your portfolio's performance an incentive for him to perform well?
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Because he wants to retain your business. You can fire him in an upstate New York minute
Hybrid advisers get fees from you AND commissions from brokers, so split loyalties. If he puts you in a front-loaded mutual fund, he can get kickbacks irrespective of how it performs.
Having said that, not all hybrid advisers are scum of the earth. but it behooves to be aware of the incentives. Read Freakonomics.
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