Families That Cheat Investors Together, Stay Together

When you are performing your due diligence on a financial advisor the first question should be, do you follow the fiduciary standard? Any other advisor will not put your interest first. Their employer comes first.

WASHINGTON -  FEBRUARY 25: Chief Financial Off...
WASHINGTON - FEBRUARY 25: Chief Financial Officer, GMAC Financial Services, Robert Hull testifies before a Congressional Oversight Panel during a hearing on GMAC Financial Services and the Troubled Asset Relief Program on Capitol Hill February 25, 2010 in Washington, DC. The Panel heard from the U.S. Department of Treasury, GMAC Financial Services, and industry analysts about their perspectives on GMAC's current and future financial stability, the structure and staging of Treasury's investments in GMAC, the rationale behind that support, and GMAC's strategic initiatives and plans to repay the taxpayers' investment. (Image credit: Getty Images via @daylife)

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.

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