Quote:
Originally Posted by fotze
And creating that fear is the best mode of generating business for you.  I love when the financial planner bumps the fear they have just created about not having enough money for retirement into a whole new level when they mention cancer (or "crititcal illness"), you'll be singing checks to the dude for the next hour for automatic withdrawls for all sorts of insurances and direct deposit into investmenet accounts. It is a mystery what they make in commisions on all this because it is never disclosed. |
While that creation of fear might be the easiest way to make a commision its still unethical in my mind. Quite frankly projecting a flat, consistent rate of return for the next 40 years and saying everything will be fine as a result is simply false and provides false security.
I know what you're saying on the insurance side of things. I don't get into the whole review of how likely you are to get cancer or have a heart attack or things like that with people. I figure that we hear enough of that everyday in the news...we all know that the odds are that one of these things will hit us, you don't need me to tell you that.
Lastly, if the commissions on products are not disclosed and you want to know you should ask. They absolutely should be disclosed, and I personally have no issue in discussing this at all.