Like me, you need Wall Street. All of us do. Doctors, teachers, lawyers, nurses, government employees, carpenters and corporate execs. We require our savings–no matter what the size–to compound and grow sizeably over the rate of inflation so that we can fund our children’s education and provide us with some comfort in retirement.
Over the decades Wall Street has needed us even more. They’ve needed a captive audience to purchase their opaque and oftentimes weak performing investment products. They’ve also needed us for their own personal profit as we have engaged in relationships with investment professionals with little understanding of non-transparent and elevated fee structures. But this is about to change in at least one way.
Josh Brown points us to an article in the New York Observer about “the Suitability vs Fiduciary (or Broker vs Advisor) debate that’s been raging in the investment profession for years now.” It’s important to note that this debate has mostly been confined to the professional investment arena. Josh goes on to say, “Main Street is starting to take an interest in this decidedly Wall Street topic as they should – after all, nowhere is this standard of care issue more relevant than in the accounts of the clients themselves.”
It’s about time that this topic begins to hit the mainstream media. I’m truthfully shocked that there isn’t a greater understanding about the conflicts of interest that exist in the investment management industry. To find out more, check out the New York Observer article below.