Started to read “Freakonomics”, totally recommend it (Buy at Amazon)
Which is more dangerous, a gun or a swimming pool?
What do schoolteachers and sumo wrestlers have in common?
How much do parents really matter?
These may not sound like typical questions for an economist to ask. But Steven D. Levitt is not a typical economist. He studies the riddles of everyday life—from cheating and crime to parenting and sports—and reaches conclusions that turn conventional wisdom on its head.
Freakonomics is a groundbreaking collaboration between Levitt and Stephen J. Dubner, an award-winning author and journalist. They set out to explore the inner workings of a crack gang, the truth about real estate agents, the secrets of the Ku Klux Klan, and much more.
Through forceful storytelling and wry insight, they show that economics is, at root, the study of incentives—how people get what they want or need, especially when other people want or need the same thing.
A financial advisor is a professional who renders financial services to clients. According to the U.S. Financial Industry Regulatory Authority (FINRA), terms such as financial adviser and financial planner are general terms or job titles used by investment professionals and do not denote any specific designations. FINRA describes the main groups of investment professionals who may use the term financial advisor to be: brokers, investment advisers, accountants, lawyers, insurance agents and financial planners.
Role
Financial advisors typically provide clients/customers with financial products and services, depending on the licenses they hold and the training they have had. For example, an insurance agent may be qualified to sell both life insurance and variable annuities. A broker may also be a financial planner. Put simply, a financial advisor is a financial products salesperson.
Compensation
A financial advisor is compensated through fees, commissions, or a combination of both. For example, a financial advisor may be compensated in one or more of the following ways:
An hourly fee for advisory services
A flat fee, such as $500 per year, for an annual portfolio review or $2,000 for a financial plan
A commission on the securities bought or sold, such as $12 per trade
A commission (sometimes called a “load”) based on the amount invested in a mutual fund or variable annuity
A “markup”: when one buys “house” products (such as bonds that the broker holds in inventory), or a “mark-down” when they are sold
A fee for assets under management, such as 1% annually of assets managed
Advisor vs. adviser
Adviser and advisor are not interchangeable in the financial services industry, since the term adviser is generally used “when referring to legislative acts and their requirements and advisor when referring to a practitioner. Since a financial advisor’s practice is never described as an advisery practice, advisor is preferable when not referencing the law.”
