Quarterly Thoughts – Q2 2011

Who is on your side? Insightfully, when asked what his profession was in the 1979 film “Manhattan”, Woody Allen’s character responded, “I’m a stock broker. My job is to invest people’s money until it is all gone… I’m frequently wrong, but never uncertain.”

Sadly, most investors still aren’t clear about the difference between securities salespeople, i.e. “brokers” or commission-based or fee-based “advisors” (i.e. accepts fees AND commissions, unlike fee-only advisors), vs. objective advisors who follow the fiduciary standard. The former are motivated to maximize their income by increasing the number of transactions and/or use of commission-paying (i.e. expensive) investment products, and are not required by law to act in the best interest of their clients. Conversely, qualified fee-only advisors are held to the highest standard of care. WealthStep’s parent company was one of the first firms in the industry to adopt this approach, and is proud to be one of the first to bring it to smaller- and mid-sized investors through WealthStep.

1) We act as your financial advocate and simplify your life, without a hidden agenda.
2) We accept fiduciary status, in writing, which binds us legally to act in your best interests.
3) We are paid only by our clients, with a transparent fee schedule and no hidden costs or incentives.
4) We are fully independent and completely objective, enabling us to access the best resources for you.