Just as important, commissions introduce conflict of interest between the service provider and the client. Let me illustrate. A stockbroker once told me that variable annuities were the best investment anyone could make. Since I taught investments at a university, I knew scientific studies did not support his contention. When I asked him why he believed this to be true, he said it was because they paid the highest commission. It was obvious that he was pursuing his interests and not those of the client. Financial services should be delivered by hard working educated professionals who provide their service for a fee, not a commission.

Think of your local accountants. They charge you for the services they deliver. They don’t sell you products; they answer questions and perform tasks. One easy way to spot a salesperson is if they tell you that you don’t have to pay them. If you do not pay them who does and why would someone else pay your bill?