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In support of articles I’ve written here previously, the WSJ put out an article today that tells us “Investors Turn to Independent Advisers“. Apparently, folks are beginning to understand that the “broker” isn’t working in their best interest.
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“The reality is that the brokerage firms are set up for the brokerage of products,” says Ms. Rosenband (a former Smith Barney rep). And even though brokers’ titles may have changed over the years to “financial advisers and consultants,” she says the culture at the firms hasn’t. As a result, clients were often confused about what they were getting, she says, adding that she brought over about 20% of her clients, mainly those who were primarily interested in a long-term approach.
I agree with the article, the average investor/saver/future retiree can definitely benefit by utilizing an independent fiduciary advisor over a brokerage sales rep. I just hope this message is getting out to enough people to make a difference.
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I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 20 years of experience in the industry. . Read more from this author
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And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
Jim,
I suffered a little from this type of confusion myself not to long ago. I was mistaken about what the role of my “financial adviser” was, and didn’t understand that they’re primary job was actually to sell me products. The confusion was undoubtedly the result of ignorance on my part, and that only made the whole revelation that much more frustrating.
It’s certainly understandable, Dave – and the “financial advisor” (aka broker) is counting on your confusion. Glad to hear you got the message though. I’m sure you’ll reap the rewards!