How much do investors lose from conflicted advice?

Introduction

Investors worldwide turn to financial advisors when making key decisions such as whether or how they should convert an employer-based retirement account (such as a “401(k)” account in the U.S., an “RRSP” in Canada, “Super” in Australia) to an individually-directed retirement account (such as an individual retirement account or “IRA” in the U.S.). However, such financial advisors are typically compensated, directly or indirectly, in the form of fees and/or commissions from funds and other investment products. Not surprisingly, their recommendations are not always in the individual customer’s best interest.

A U.S. government report, released 19 February 2015 by the

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