In this volatile financial climate, it's vital to find avenues of investment that will not only maximize your profits but also lay the groundwork for future revenue. While many brokers will tell you that they have the secrets to finding quality assets with stable returns, the reality is that they're seeking investment options that not only generate revenue but also justify large commissions and fees.
Many investors in today's market turn to financial guidance to spare themselves from potential losses. Yet most of these firms function as a form of monetary daycare, keeping an eye on your investments to justify their rates but failing to significantly grow or improve your positions.
In this article, we'll look at some of the motivations behind brokers and investment consultants that, while certainly not universal, look after a significant portion of individual investment accounts.
In many companies, commissions form the bulk of a trader's or analyst's income. Therefore, professionals tend to gravitate their advice and guidance toward assets that will generate quick profit, an avenue that isn't always beneficial to their client. Most financial advisors charge around 1 percent for trading expenses, which in addition to their bonuses, commissions and miscellaneous fees can take a big chunk out of your monthly revenue. According to industry analysis group Oil Trading Info, finance counselors made an average of $6,900 per client in 2009, which for some represents a substantial portion of their potential revenue.
So what can you do as an alternative to paying these high commissions for broker serving investments? One solution is setting up a "Self directed, checkbook LLC, retirement account." With this service, you, not a broker, make the investment choices.
There are market options available that can help people establish independence and gain complete control over their income with low-risk investments and all you need to do is learn about them. While it may result in more work on your side, the rewards for doing so greatly outweigh the effort.
One place to start is with GreatWealthStrategies.com. By working with us, you get a "Free Game Plan Report" and may sign up for our Wealth Academy, which gives you access to the attorneys, realtors, and certified advisors that can guide you through the process of giving your broker the boot!
Cash flow real estate involves purchasing homes in competitive housing markets and generating revenue through affordable rent structures. Whether you're trying to find a safe asset class or investing for retirement, you should consider this new opportunity.