Two ways this work is paid for
Some advisers earn when you transact. The advice and the ticket are the same business. Others earn for the analysis, whether you then buy, sell, or sit still.
The second model is harder to run. It is also what most people think they bought when they heard the word independent.
Three tests we use on ourselves
We treat independence as three checks, not a tone of voice:
- We are not paid by the product, the execution, or the provider we mention
- We write options down, including doing nothing
- Anything that needs a license is done by a firm that holds one, and that split is on paper
Ask any adviser these three questions
How are you paid for this work, and for anything that follows it? What did you consider telling us not to do? Which parts of this need an authorization, and who holds it? Honest answers to those three questions sort a room faster than a credential list.
This publication presents analysis and perspective as of its date and does not constitute investment, legal, or tax advice. See our Risk Disclosures.