What is unethical as fuck, but is extremely common practice in the business world?

Upfront commissions on financial planning products. For example many life insurance plans, annuities, and other investment instruments pay out a large up front commission to the financial planner (salesman) who sells them to the client. This model can (not always) lead to the "advisor" selling you a plan that you didn't really need that is a more expensive one than your specific needs require so that they can get a bigger commission upfront. I much prefer the model that many other advisors use that is a small % up front and then yearly trailing commissions that are only made if you hold the investment vehicle with them still. This makes it so that I want to get you the best possible investment for your needs because if I don't then you'll leave as soon as your realize I didn't make choices in your best interest taking with you my future quarterly commission checks.

/r/AskReddit Thread