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Who they are – How they get paid
Staff Writers
According to the Dictionary of Health Economics and Finance, a bond-broker derives her or his income differently than a fee-for-service financial advisor with assets-under-management [AUMs]; not necessarily unlike a stock broker.
www.HealthDictionarySeries.com
Transaction Driven Commissions
In other words, bond-brokers use transaction-driven sales, and earn commissions based on turnover in a brokerage account or portfolio.
No Quarterly Management Fees
Although the bond-broker takes no quarterly management fees like a financial advisor, the broker’s advice may be colored by the commissions associated with bond issues he or she recommends; which results in an inherent conflict of interest in the broker relationship.
Assessment
Thus, the physician-investor must constantly be aware of the potential for being sold debt-based securities that may be more advantageous to the sales broker than the doctor’s portfolio. Realize too, that the current Credit Default Swap [CDS] fiasco on Wall Street today was prompted in many respects by aggressive bond-brokers! So, always remember Caveat Emptor!
Conclusion
While a bond or stock-broker may offer advice, the physician-investor makes the decisions and therefore is accountable for them. And so, your thoughts and comments on this Executive-Post are appreciated.
Related Information Sources:
Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759
Physician Financial Planning: http://www.jbpub.com/catalog/0763745790
Medical Risk Management: http://www.jbpub.com/catalog/9780763733421
Healthcare Organizations: www.HealthcareFinancials.com
Health Administration Terms: www.HealthDictionarySeries.com
Physician Advisors: www.CertifiedMedicalPlanner.com
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Filed under: Financial Planning, Investing, Portfolio Management, Risk Management | Tagged: bond brokers, credit default swaps |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Hi all ME-P Readers
A first mistake is thinking that financial advisors, bond-brokers or investment consultant are professionals. Most of them are not.
I am a DIYer and am down in the market-too; but the errors are my own and without the fees and expenses of intermediaries.
Today, with the internet, most all the financial information is the same and transparent, anyway. But, it is suspect too.
Nevertheless, if you are uneducated, and have no marketable skills or special attributes, the best way to earn a living in American is by being a salesman. And, what you sell is not important; the selling skills are the same. These guys just sell financial products; not unlike used car dealers, real-estate and insurance agents, mortgage brokers, and other retail sales clerks.
Q: What’s the difference between a financial advisor, bond-broker and a Burger King clerk … a blue-suit!
Melvin
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