Did you ever wonder exactly how financial advisors get paid? Well, I'm about to explain in this,

the 11th episode of the Retirement Planning Education Podcast.

Welcome to the Retirement Planning Education Podcast, where you can learn all about

IRAs and Roth IRAs, employer retirement plans, taxes, social security, Medicare, portfolio withdrawal strategies,

annuities, estate planning, and much more. And now here's your host, Andy Panko.

All right. Welcome, everyone. Thanks again for listening and definitely appreciate it.

We're going to take a little departure today from the typical retirement-specific information discussed. Today I want to

talk about how financial advisors are paid. This is a fun one. It's a little off the beaten path,

like I said, not the typical sort of IRA and Medicare type stuff we usually talk about,

but nonetheless interesting. And it's a question that comes up a lot. And I think it's important to break down and explain because there's a lot of

misunderstanding, misinformation, and confusion out there about what exactly a financial

advisor is, let alone how he or she is paid.

So that's what I want to get into.

Let me start by saying that part of the problem is there is no single standard definition of financial advisor.

And it's the industry's fault because there's multiple different regulatory bodies that all come into play.

And these regulatory bodies don't have a lot of overlap necessarily.

They often don't jive and connect with one another. So there's really kind of three main,

broad, and distinct regulatory bodies that come into play that depending which form of regulation

this person, you know, the advisor is under, that'll dictate

what he or she sells, you know, what product or service they sell, how they're paid,

the standard of care, whether or not they have to act in your best interest or not and things

like that. So for now, I'm going to use the term financial advisor generically, but just know

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