How much are you currently paying your stock broker?  I’m willing to bet you have no idea.  Does the amount you pay for investment services have an effect on the returns in your account?  You bet your assets it does. And are you receiving any value for the expenses you incur on your investment accounts?  It’s not just cynics that are saying no.

Some people appreciate the car salesman that can talk them into buying a new car, but is that what you should expect from your investment guru at your bank or brokerage firm?  Imagine an accountant who worked on commission.  His pay would increase with every deduction he could convince you to take.  It’s an appropriate comparison to the way most investment firms operate and variable annuities are an excellent example of this point.  Despite being horrendously expensive and unsuitable to most investors, variable annuity sales have fast become the bread and butter of investment salesmen.  And investors shouldn’t be surprised to learn that commissions on variable annuity sales are not only higher than, but often dwarf those offered by mutual funds.

What is an investor to do?  Most investment professionals are salespeople with fancy titles, and I am convinced that an investor who is willing to educate himself will find more value in managing his own investments than he will find with a typical broker.

Some investors are lucky and have found competent and trustworthy investment counselors.  You can help yourself get lucky by finding a mentor, reading a book, taking some classes, and searching the internet.  Whether you want to do your own investing or pay a professional, educating yourself will only help in your quest for higher returns.

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