Topic: How To Invest

What is Pat’s commentary for the week of July 24, 2018

Article Excerpt

One crucial element in succeeding as an investor is that you have to stay alert for conflicts of interest in the information and advice you receive. Conflicts of interest vary widely in the risk they expose you to. Some are huge—others, barely worth mentioning. They are your greatest risk because they exist all around you. Today, many investors understand the conflicts of interest that brokers and other investment salespeople face when deciding what investments to sell to their clients. Brokers can sell a wide variety of investments; commissions and incentives vary widely as well. The general rule is that the commission on and incentives for a sale rise with additional risk—and/or—cost for the investor. Of course, in every industry, some salespeople routinely settle conflicts-of-interest in their clients’ favour—that is, they sell what’s best for the client. This means they make less money in their early years than they could if they focussed on month-to-month earnings. Instead they hope to profit in the…