How do Financial Advisors Make Money

Beware of advisors who promise too-good-to-be-true returns or make guarantees about investment performance.

Steer clear of advisors who require you to sign a long-term contract.

Watch out for advisors who charge high fees, commissions, or hourly rates.

Be suspicious of anyone who tries to sell you insurance or investment products that aren't necessary.

Be skeptical of advisors who aren't registered with the SEC or your state's securities regulator.

Fnancial advisors also typically charge an annual fee, which is either a percentage of your assets under management or a flat fee.