The Secret Wall St. Doesn't Want You to Know By Keith Hawk
I pride myself in being an honest person and doing the right thing no matter what the situation is. I will always be this way due to how I was raised and taught by my mom and dad; the values ingrained in me: always strive to do the right thing, and when you can, help others. Unfortunately, not everyone shares this same viewpoint, especially in the industry I have chosen as a profession, the financial industry. I felt like shedding some light on a taboo subject that isn't too widely known: how do Wall St. and the big brokerage houses actually work, along with how everyone in the financial industry gets paid and why.
In the financial industry, not all "financial advisors" are created equal. Everyone calls themselves a "financial advisor", "wealth manager", or "financial consultant". Even a CFP® (Certified Financial Planner®) has bias and conflict of interest depending on who he works for. Don't be fooled by titles because titles can be deceiving. The reality is that there is bias and conflict of interest due to how someone is licensed in the financial industry. I can't stress this enough.
There are typically four relationships you can have in the financial industry: a relationship with a banker, an insurance agent, a commissioned broker, and a fee-only investment adviser. The banker and insurance agent handle safe money... money "out" of the market, whereas the commissioned broker and fee-only adviser handle risk money... money "in" the market.
