Most investors do not realize the conflicts of interest they have with the brokers and agents that sell them financial products. In most cases these products benefit the broker or agent and their companies. Investors would be much better off seeking an adviser who is willing to serve as a fiduciary to them. A fiduciary adviser must put the interest of the client first.

Advisers who get paid for the products they sell tend to harm their clients’ portfolios, two studies suggest. These advisers appear to make our biases worse.Unbiased financial advice exists. But investors who need it most don’t seek it, a third study shows. Investors who do rarely follow it. And those who do follow it need the advice the least.I’m not sure what to say about all this other than it’s time we all woke up. Regulators, employers and advisers can do more to protect our savings from biased money managers. But a whole lot of our success hinges on us.

Investors should look for advisers who are willing to be a fiduciary to them. In other words they will only recommend what is in the best interest of the client.

Please comment or call to discuss how this affects you and your investment portfolio.