Recently there have been much talked about proposals to shift from commission based financial planning to fee based financial planning. We have heard a lot of propaganda that it will not work well in our context. I will like to give a little bit of my thoughts on this. I am quite certain the majority of the people will not go for fee based.

Commission based Financial & Insurance Planning Is Filled with Economic Bias

A commission based insurance advisor has to sell in order to get paid. There are economic bias to it. What is economic bias? This video below explains it pretty well:   Not all insurance agents are bias, but with a structure like that, its hard to sell plans that people need yet pays little commission.

The psychology of paying a large fee upfront

When I get to know that for a fee based financial planner ......