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Showing posts from April, 2016

Your investment manager might soon be legally obligated to actually give you good advice!

The U.S. department of labor is doing something awesome: Proposing new rules that might actually require investment managers to do what is best for you, the client, not just what is best for their own wallet! Source

When you use the services of a real estate agent to buy a home, they have a "fiduciary duty" to you. That means that they are "obligated at all times to act solely in the best interests of the client to the exclusion of all other interests, including the broker’s own self-interest."

And even with the fiduciary duty, you will still find realtors who subtly (maybe even unconsciously) will recommend a buyer takes a deal for $5,000 less. They know it will let them close the deal faster, get their commission, and move on to the next sale to bring a paycheck home to feed their kids and provide their spouse with the best they can.

Imagine the conflict of interest in the investment arena, where there is currently no requirement for fiduciary duty!

Suppose a fi…