Hey everyone,
I'm not in finance or a realtor. I'm in the manufacturing industry. I'm just curious, and just want everyone's opionion on commission based charges/earnings when it comes to realtors and financial advisors.
Let's start with financial advisors. I've had bad experiences with them. They have obtained my business personally and also through my business. I've had at least three advisors over 16 years. After they obtained my business either way, they never really "advised" me on anything thereafter. They put my money into the larger corporations' portfolios and that was it for many years. Never had a call back. And these are advisors who represent the big companies that we all hear on radio ads. The portfolio returns are good... Around 10% year on year average, taking the world's poor economy into account. But my personal return average was 4.8% year on year. the difference is made up of all the fees between the corporate company and the advisor. This was over 13 years. The advisors in these big companies take a percentage/fee of your fund value, regardless of its growth. My first question is, is it fair that they charge such exhorbitant fees, nevermind if you actually had growth? And the second question is, is it better to invest in the modern companies such as 10x or Everest wealth for example... The 1% companies... Or maybe even Easy Equities.. either way, cut out the advisors/ brokers?
Lastly, real estate agents. Simple question... Should their commission be based on a percentage of the property or, should it be a flat fee? I'm really only talking about properties that sell reasonably quickly that are below, let's say, R2m which sell quite easily and don't require a lot of effort to sel. At the end of the day, the paperwork is the same for the transfers. T
My question also includes lawyers who also base their fees based on the value of the property for transfer fees.
I just think that the work is cut out for them in a lot of these industries in that they can earn big money based on values of the assets without performing any additional extra effort.
As mentioned, I don't work in any of these industries and so I probably won't understand the intricacies of them but, I'd appreciate to understand it.
I'm not in finance or a realtor. I'm in the manufacturing industry. I'm just curious, and just want everyone's opionion on commission based charges/earnings when it comes to realtors and financial advisors.
Let's start with financial advisors. I've had bad experiences with them. They have obtained my business personally and also through my business. I've had at least three advisors over 16 years. After they obtained my business either way, they never really "advised" me on anything thereafter. They put my money into the larger corporations' portfolios and that was it for many years. Never had a call back. And these are advisors who represent the big companies that we all hear on radio ads. The portfolio returns are good... Around 10% year on year average, taking the world's poor economy into account. But my personal return average was 4.8% year on year. the difference is made up of all the fees between the corporate company and the advisor. This was over 13 years. The advisors in these big companies take a percentage/fee of your fund value, regardless of its growth. My first question is, is it fair that they charge such exhorbitant fees, nevermind if you actually had growth? And the second question is, is it better to invest in the modern companies such as 10x or Everest wealth for example... The 1% companies... Or maybe even Easy Equities.. either way, cut out the advisors/ brokers?
Lastly, real estate agents. Simple question... Should their commission be based on a percentage of the property or, should it be a flat fee? I'm really only talking about properties that sell reasonably quickly that are below, let's say, R2m which sell quite easily and don't require a lot of effort to sel. At the end of the day, the paperwork is the same for the transfers. T
My question also includes lawyers who also base their fees based on the value of the property for transfer fees.
I just think that the work is cut out for them in a lot of these industries in that they can earn big money based on values of the assets without performing any additional extra effort.
As mentioned, I don't work in any of these industries and so I probably won't understand the intricacies of them but, I'd appreciate to understand it.
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