In this episode, we break down one of the most misunderstood parts of the financial industry: the difference between financial advice and product sales and why it matters more than most people realize.

Most people seek out a financial professional because they want advice. They want to confirm they’re on track, want help building a comprehensive plan, or are seeking guidance for a specific financial decision. What many don’t realize is that the financial industry has historically been structured as a sales-based business. According to feeonlynetwork.com, fewer than 2% of the 295,000 financial professionals in the United States can be classified as Fee-Only for the advice they provide.

We explore how compensation, sales quotas, and limited product offerings can influence recommendations, often blurring the line between objective advice and a sales presentation. We end with a simple recommendation of how to quickly identify advisors who have prioritized advice and eliminated the sales-based commission and revenue sharing incentives from their practices.

If you want to better understand the incentives behind the advice you receive, this episode will give you a framework to ask the right questions and choose a financial professional that is right for you.

Thanks for listening!

For more details we recommend that you check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/why-financial-advice-vs-product-sales-matters/