Orman often jokes that a financial broker will “make you broker.” Her biggest pet peeve with financial advisors is that most are only looking to sell products.
But even Orman admits that not all financial advisors are bad.
Bad vs Good financial advisors
Suze Orman warns that working with a financial advisor who earns all of his or her money through commission on the investments you buy and sell will never have your best interests in mind. These advisors will only be interested in getting you to do a lot of buying and selling.
Whether you realize it or not, many financial advisors still get hidden kickbacks” from their brokers. This means that a large portion of your commission is given to them from their broker. So, even if advisors don’t explicitly work on commissions, they may still receive these hidden kickbacks. That’s why Suze Orman recommends working with advisors who only charge an upfront, flat fee.
Suze Orman is a award winning certified financial planner and author of several books including 'The Road to Wealth'. She went from being a waitress at age 30, making $400 a month, to now having her own TV show and a net worth of $30 million dollars.
