Quora Answer: What Do Financial Advisors Not Want You to Know?

The following is my answer to a Quora question: “What do financial advisors not want you to know?”

Most financial advisors do not want their clients to know how much commission they make.  This is especially so for the less scrupulous ones.  Should clients realise the disparity in the compensation of certain financial instruments, they might come to the, often correct, conclusion, that the product recommended is not necessarily in their best interest, but because it provides a better commission to the advisor than a more suitable product.

To avoid this, you should not be afraid to compare products, and the scrutinise the distribution cost and benefit illustration.  Alternatively, you should be particular about who your advisor is.  Good financial advisors have product knowledge, consider your needs, and regularly update you.  If he sells you a product, and then disappears until he wants to sell you another product, he is not a good financial advisor.