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Your broker is not your investment counselor

SolomonSuccess.comJason Hartman”s second Commandment for Successful Investing states that you should have a professional investment counselor. Note that this does not mean your investment broker counts, he likely doesn”t. The reason for this seems obvious to us at Solomon Success. Your broker is often part of a nation or world wide franchise. Their job is to make the corporation money. That means their “recommendations” should be taken with a spoon of salt.

Do you think there”s a chance that heartfelt advice from their lips might be a wee bit influenced by a memo from headquarters? We do. There”s nothing particularly evil about that. Every person or business who makes a living by sales is going to try to get you to buy what they”re selling by emphasizing online casino the best parts. The problem arises when the financial products your broker is pushing might not be great for your portfolio.

Plus keep in mind that repeated buying and selling, some call “churning” your account, makes more money for the brokerage in transaction fees. We would define counsel as “advice or guidance from a knowledgeable person.” Add to that the person should have your best interests at heart.

Your broker doesn”t likely fit this definition. He”s merely a transaction monkey and sales agent. To be successful in investing, you need to find someone who knows the kind of real estate investing you want to participate in inside and out, has no private agenda, and is willing to advise you plainly and honestly. Find such a person and your chances for success just improved dramatically.

The Solomon Success Team

Flickr / David Paul Ohmer

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