We've talked a lot this year about the importance of a fiduciary relationship, which wealth managers such as myself are bound to. Washington has been taking steps to make stockbrokers also take on the fiduciary duty, which means they would always be required to put the interests of their clients first. There's a full article about this topic posted on the Echelon Wealth web site.
Stockbrokers have resisted that responsibility, but now there's a new pocket of resistance coming as well from the insurance industry. A representative for an insurance lobbying industry claims that the fiduciary duty could limit the avenues for mid-tier customers to receive quality financial advice.
But clearly, anyone who is giving you financial advice without acting in your best interests is not giving you the best possible advice. Whether it's a financial advisor, a stockbroker or an insurance agent, the people you rely on for financial guidance must keep your needs first and foremost. If one of your financial experts chooses not to adhere to a fiduciary standard, you have to ask yourself: Why not?
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