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I've always found the conflict of interest of a broker or financial advisor to be glaringly obvious, but rarely brought up. I noticed in the prospectus for my Waddell & Reed mutual funds that the conflict of interest is even stated in there!
"If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and/or IICO and/or its affiliates may
pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the brokerdealer
or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial
intermediary’s web site for more information."
I guess at least they just come out and say it (although who reads the entire prospectus?) It is no wonder my soon-to-be ex financial advisor only pitches W&R products. With 5.75% front loads and expense ratios approaching 2% on many average funds....no thanks.
Anyone else see the problem here?
"If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and/or IICO and/or its affiliates may
pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the brokerdealer
or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial
intermediary’s web site for more information."
I guess at least they just come out and say it (although who reads the entire prospectus?) It is no wonder my soon-to-be ex financial advisor only pitches W&R products. With 5.75% front loads and expense ratios approaching 2% on many average funds....no thanks.
Anyone else see the problem here?
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