Appendix A. Tips for Handling Your Broker, Financial Adviser, or Financial Planner

A survey of more than 200 affluent investors, defined as those with more than $500,000 of investable assets, showed that 26 percent were considering changing their investment adviser in the summer of 2002 because he or she was affiliated with an investment banking firm. The study, by consulting firm Spectrem Group, also showed that two thirds of those surveyed believe there is a conflict of interest when a company acts as both investment adviser and the underwriter of securities recommended by that adviser. Add those concerns to the knowledge that a broker’s main job is to get you to buy shares you don’t own and sell shares you already do so that he or she can generate ...

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