I had the pleasure of speaking to Kerry Mayo a Financial Planner from Clifton Park, NY. Kerry and I talked about how there are three different types of compensation methods for financial planners.

The first compensation method is by commission where a broker will sell you some type of stock and then receive a commission from this sale.

The second type of compensation is fee only where a financial planner will be compensated on an hourly basis for there time or be compensated for the assets that they manage. The assets under management or A.U.M. model is a method of compensation where a financial planner or planning firm will charge a certain percentage of the total assets to manage them.

The third type of compensation method is a hybrid model where there is a fee based income and also commission on some type of investments, say a commission for selling a mutual fund.

Kerry and I also discussed what he thinks the market will do moving forward and some of the things that will positively or negatively impact it in the coming year.

If you want to find out more to Kerry Mayo please click on this link.

Why should you listen to this podcast episode?

You should listen to this podcast episode to learn more about how your stock broker gets compensated and how to pick one whose interest are more in line with yours.

Podcast: Play in new window | Download