How to get financial advice worth your money — Antoinette Schoar

From WSJ MarketWatch and MIT Sloan. Innovation@work Blog

In an effort to create a successful retirement portfolio, investors often find their way to professionals who loosely call themselves “advisers” or their services “financial planning,” even though they are de facto sales agents paid commissions by their company. This compensation structure can lead to conflicts of interest between financial professionals and their clients.

Yet, despite numerous anecdotes that pay structures influence investing advice, there is little reliable evidence about the quality of advice that financial professionals actually provide. Do financial professionals help retail investors make better financial decisions and educate investors? Or do they put their own interests first and attempt to generate more commissions and fees? Read More »