April 27, 2013
I do not understand how it is possible to be a fiduciary... If I am going to put my client's interest before mine... how do I save for my children's education or my retirement.. it can not exist... it is like the Easter Bunny.. it sounds nice.. but it cannot not exist. then you all.. say, it can exist with disclosure.. well with disclosure.. it does not exist.
2. being a fiduciary changes the investments... Huge point. My friends who are fiduciary's say "If I see, I have to charge for it."... if the real, non regulated allocation is for 20% cash... the fiduciaries will not do that because the client is guaranteed to lose money on that 20%.... so they put the money at risk.. so it might make money after fees.. As a "salesman".. I leave it in cash.. do not charge on it..and don't get paid.
If someone is smart, lucky or able enough to have $500,000 to invest with me.. let them make the decisions if I am capable.. The government is becoming the advisor by default and it ends up costing everyone more money.