TOM CARLSON'S TAKE ON FINANCIAL ADVICE

To Trust Wall Street’s Finance Advice or Not?

Intro To Wall Street

Wall Street is comprised of extremely smart and savvy financial professionals who have graduated from top-tier colleges and universities

Many of these professionals are financial advisors, whose job it is to consult and advise investors on financial decisions

Here in lies an interesting dilemma: Interest Alignment, Stockbrokers, The Bottom Line, and Income post-retirement

Interest Alignment

Definition: An arrangement or relationship in which all parties stand to benefit from one particular outcome

Example: A company that rewards its employees with shares of stock or opportunities to buy shares at a discount This method aligns the interests of the employees with

those of management and shareholders All parties benefit directly from an increase in the

stock price

Advice on Interest Alignment

Investors have to be sure they comprehend the incentives these professionals have Often this means getting your dollars first and put

your investment success last

Stockbrokers

Interest alignment problems also exist with respect to stockbrokers

Stockbrokers benefit when you make transactions, simply put the more you trade, they more they earn This can be detrimental relationship as someone could

be encouraging you to trade in order to benefit from you

Advice on Stockbrokers

Investors need to understand that the interests in the stockbroker business are not aligned with those of investors and that they might not get the best advice from such professionals

The Bottom Line

Investors with relationships to Wall Street institutions need to get a thorough feel for the underlying reasons which govern Wall Street's business practices

Be positive that anybody who wants your money is properly incentivized to work for YOU

Investors should only listen to Wall Street's financial advice if they can be sure, that client interests will be put first or, better yet, that their interests are aligned with the interest of the advisor

Acquiring More Income During Retirement

Social Security: Major role in one’s financial security

However its not the only way to boost your retirement income

State/Occupational PensionsPurchasing AnnuitiesRental Property Income

General Advice

Make well informed decisionsIf you use an investment advisor and/or a

stockbroker, be sure that their plans align with yours

Always do your research and don’t be afraid to question the professionals