Ben Oberg walked me through something most people investing through a financial advisor have never heard of.
Independent advisors write their insurance business through something called an IMO, an insurance marketing organization. Think of it like Sotheby's for real estate agents.
The IMO takes a wholesale commission, two to two and a half percent, on every dollar of production across hundreds of advisors, which adds up to hundreds of millions a year.
Then they use bigger commissions as a recruiting tool. You're getting seven percent on this annuity, come over here and get eight for the exact same work.
Meanwhile your advisor is telling you, we're a licensed fiduciary, we have to act in your best interest, while getting incentivized behind the scenes to sell you the same handful of products regardless.
Send this to the friend who thinks their advisor is picking products based on what's best for them.