The wheels of public policy are spinning in Washington DC as the Department of Labor, the SEC, and the Congress scramble to figure our how to cure the financially sick patient: the baby boomers streaming toward retirement who will live longer than any generation before them.
Conflicts of interest between asset management businesses and financial advisors continue to be an important theme. It is noteworthy that Fidelity Investments announced yesterday that the company was being reorganized into two separate businesses: distribution and asset management.
Okay, this may be boring stuff to you. But I have one question for you: what hat does your financial advisor wear: fiduciary or sales? If it’s the latter, be aware that they are not expected to put your interests before theirs. Only “suitability” matters. It’s like having a doctor more interested in his revenue than your health. Would that be okay?
