Performance Compensation

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Many advisors have fee structures that have surcharges for higher levels of investment performance. 

Charging performance fees above the basic management fee as a % of assets managed is a sucker fee. 

Keep in mind comedian Chris Rock's line of "supposed to's."  No accolades, trophies, or bonuses for doing what you are supposed to do. 

Advisors are supposed to do the very best they can to achieve investment performance consistent with investment goals and risk tolerances of each client. 

Advisors are already compensated very well by commissions and by assets under management fees!

Performance compensation is an easy way for an advisor to use an investor's capital as a means for financing his/her own gambling habit. 

Advisors who have a performance compensation add-on will typically assume more investment risk than appropriate for a particular investor with the hope of being paid a performance bonus on top of what he/she will be paid regardless of performance.

Let these city slickers do themselves in with their own money. 

Besides, if they know so much, why do they need to share their "best" ideas with you? 

For any investor who is currently in such a situation, perform and get out of it today.