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Subject:  Re: Retirement brokerage account Date:  9/24/2001  12:55 PM
Author:  jrr7 Number:  31967 of 88763

There is a legal definition of "advice" but I don't think your salesman falls within the definition. In my opinion, he's using the law as a shield to give you less service.

The problem is not him, it's the compensation structure. He only gets paid if he generates commissions for his parent company.

I would rather have my advisor being paid directly by me, for the time and effort he puts in on my behalf, than to have an advisor paid indirectly through a brokerage firm who has to do what the brokerage says if he wants to get paid.

Are his interests in line with your own, or are they opposed? Several research studies show that frequent trading tends to lower individual investors' returns. The more you trade, the more your advisor gets paid, whether you do well or not.
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