Quick question: when your bank gives you financial advice, are they giving you the best advice for you… or the best advice for the bank?
That’s the question being raised by CARP, the Canadian Association of Retired Persons.
The concern is that some financial advisors can be influenced by sales targets, compensation, or the products their institution offers.
In fact, a recent regulators’ report found that nearly one in four in-branch advisors admitted they don’t always put the client’s best interests first because of sales culture.
Now, that doesn’t mean your bank advisor is out to get you.
But it does mean you should ask questions.
Like: “Are you able to recommend investments from outside your bank?”
And: “How are you compensated for recommending this?”
Because when you’re dealing with retirement savings, even small differences in fees or returns can add up to a lot of money over time.
The bottom line?
Don’t be afraid to ask what you’re actually paying for—and whose interests are being served.
Because when somebody says, “Trust me, I’m your financial advisor,” it’s perfectly fair to ask:
“Okay… but who are you working for?”
