David1961
Thinks s/he gets paid by the post
- Joined
- Jul 26, 2007
- Messages
- 1,085
Probably over 20 years ago, my parents bought a load mutual fund from a financial adviser/salesman. (He called himself a financial adviser and I always called him a salesman). He is still listed on their statements as "financial representative" even though we have not heard from him in years! I know because I'm taking care of the mail and financial matters. In this particular fund, the dividends and capital gains are being reinvested into more shares. My question is, is this guy still getting paid for being the financial representative? Or is it usually a setup where he gets paid when the shares were bought? I've always wondered how their setup works, he gets clients to buy a mutual fund that has a load - does he get a portion of the load? He has to get a cut I would think. The "load" was a 5% and would have been the same had they bought it directly from the mutual fund company or going through the salesman. Either way, I'm probably going to remove him from the account.