In support of articles I’ve written here previously, the WSJ put out an article today that tells us “Investors Turn to Independent Advisers“. Apparently, folks are beginning to understand that the “broker” isn’t working in their best interest.
“The reality is that the brokerage firms are set up for the brokerage of products,” says Ms. Rosenband (a former Smith Barney rep). And even though brokers’ titles may have changed over the years to “financial advisers and consultants,” she says the culture at the firms hasn’t. As a result, clients were often confused about what they were getting, she says, adding that she brought over about 20% of her clients, mainly those who were primarily interested in a long-term approach.
I agree with the article, the average investor/saver/future retiree can definitely benefit by utilizing an independent fiduciary advisor over a brokerage sales rep. I just hope this message is getting out to enough people to make a difference.