Is Your Investment Broker Independently Wealthy?

The job of an investment broker is to recommend certain products. The products they recommend depends on the company they work for (or have arrangements with). Whatever broker you go to, they'll recommend products which will earn them commissions - and some products earn higher commissions than others. It stands to reason that the broker will recommend products which will earn them higher commissions - after all they have bills to pay as well as you - unless you broker is independently wealthy...

It is important to realize this when you go to a broker for advice about where to invest your money. You're better off educating yourself about your options and making decisions based on the outcome of your own research. If you then decide to go to a broker to implement what you have decided after researching - well that's your prerogative. I argue that once you've conducted your own research, you're better placed to make decisions regarding where your money is invested than a broker. After all - I'd much rather control my own money than hand over the power to make those important decisions to someone else.

Investment brokers:


* Often don't need any qualifications to work as an investment broker beyond limited company training.
* Receive company training which is limited in that the broker is trained to recommend certain products.
* Are well versed in products which are unlikely to earn you a decent income, and the brokerage firm have a vested interest in recommending.
* Aren't typically independently wealthy - if you want to be wealthy I wouldn't recommend putting your investments in the hands of someone who isn't wealthy themselves.
* Are looking for the best way to make themselves money - and that doesn't necessarily correspond to your financial interests.

Sure, investment brokers provide a service - they allow people to invest their money without the hassle of learning how to do it themselves. I say it's time that we educated ourselves, and made the conscious effort to teach ourselves about finance and investment - it's an area of knowledge largely ignored in our schools but taught to the rich, by the rich. There are plenty of tools out there which can make obtaining this knowledge so easy - make use of them. These are often provided by wealthy people who wish to share the knowledge they have gained and implemented in order to place them in the comfortable position they find themselves today.

Isn't a wealthy person the best person to get financial advice from? Can a broker who works for a salary deliver you a source of wealth from your investments? If that were true, wouldn't the broker be wealthy themselves? Before you decide to place your investments in the hands of a broker, ask them if they are independently wealthy.