Bank finance articles and tips

Financial advisers, and the financial institutions which they are affiliated with, are helping themselves to your money with your full consent. It's called trailing commissions. (Sometimes it maybe described as ongoing fees paid on a percentage basis). Every financial product from superannuation, home loans, managed funds, life insurance and investment loans, pay out trailing commissions. These fees and commissions come straight out of your investment portfolio. Initial commissions are relatively large amounts. Renewal or 'trail' commissions are usually paid as well as or instead of Initial commissions; these are regular monthly/quarterly/annual payments. Each payment of trail commission is a relatively small amount in itself but as they are paid throughout the life of the policy they become substantial in totality.The Australian Government has identified through recent cases and surveys the impact of commissions on investment decisions. With high profile cases of investors losing significant amounts of wealth due to commission driven practices, it is important for the public to be aware of the amounts paid.