Financial author William Bernstein said it best: “…there is a third type of investor– the investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends upon appearing to know.”Actually, there is a fourth type of “investment professional.” They definitely know they don’t know. They make a living conning you out of your money by offering you the lure of outsized returns without meaningful risk. Their con is more blatant and despicable than the conduct of your typical retail broker, but both have the same goal: Enriching themselves at your expense.
The debate on the fiduciary standard for all recommending investments will continue because many in the financial industry want the conflicts of interest to continue. The investor must come first if we are to regain the trust of the American people.
Please comment or call to discuss.
- Hidden fees: Ask for the full picture (business.financialpost.com)
- The True Enemy of Every Investor. (401kplanadvisors.com)
- The risks of being a small investor in a private company (cdixon.org)