Big financial services companies have a lot of overhead. They also have layers of managers and executives who are paid seven and eight figure salaries and bonuses to maximize revenues and profits. These companies' financial advisors have to gain control of your assets and generate as much revenue as possible from your assets to achieve corporate goals.
The reality is companies make more money doing what is best for them versus doing what is best for you. This is a major conflict of interest that tests the integrity of financial service companies on a daily basis. Unfortunately, many companies fail the test. You have seen the headlines. The most prestigious companies in the financial services industry have paid billions of dollars of fines for cheating investors. The most recent example is buying AAA ratings for junk mortgages and selling them as safe investments.
Fines are not a deterrent. They are a cost of doing business.
There is an alternative. You can select an independent Registered Investment Advisory firm that is owned by the professionals who provide services to you. Not only are you dealing with principals, you are not paying for layers of additional overhead. And, because the companies are privately owned they do not have the extra pressure of producing profits that maximize stock prices.
They can actually provide advice and services that are in your best interests. Hiring the right financial advisor to manage your financial future is one of the most important decisions you'll make. Don't fall victim to overdone sales pitches!