What Protects Investors More Than The Fiduciary

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Pam Krueger: CEO of WealthRamp Jun 9th 2017

Is your financial advisor acting in your best interest? Starting today, advisors who help clients invest for retirement must by law, adhere to the Fiduciary Standard.

Read my article on Forbes that explains what you need to know about financial advisors.

Comments

Not sure I really understand but I guess that's why it's so easy for them to take advantage of the average person.

Pam Krueger's picture

Hi Arianna,

For decades, the brokerage and insurance industry has been overcharging clients. Thanks to the internet, it's not as easy anymore to take advantage of people trying to save for retirement, or any other milestone in life. Now you can Google anything and find out the real story. Now people are demanding fees should align with services like advice, and advice should benefit you, not the broker.

The Financial services industry wants us to visualize this: you can walk into any brokerage office/branch in any town in America and you'll somehow, magically, find the financial advisor who fits your exact circumstances. In reality, you walk in and it's a salesperson who says he is an 'advisor'. I know, I was a broker. I did it for a living. Consider this: what if you're a mom who has a child on the autisum spectrum. You know your family is going to need a lot of help and guidance. Wouldn't it be nice if you knew the financial advisor has deep knowledge and expertise in special needs financial planning-- but will NOT try to pitch you a lot of insurance you may not even need?

How do you find these advisors who can fit your specific situation?

This is why I'm rolling out Wealthramp. To match you to the advisor whose other clients look like you. If you're a millennial who has saved $25k, and you want to get yourself properly set up with a holistic plan, you'd want to work with a financial planner who focuses on building wealth and getting you on the track. Very different from the client who is about to sell a business and has tax and estate issues. That said, there are many advisors I consider to be 'generalists' just like a family doctor, but when you need a knee replacement you're not going to call a cardiologist. 

I've stepped in to help make this search much easier and less stressful. I start with a curated list of independent advisors who work directly and only for you. Each has to be willing to accept full fiduciary responsibility. Then I learn about you and your preferences drive the algorithm that scores and ranks your answers to match you to the specific advisors who can help you the most. Advisors on Wealthramp are fiduciaries, not commission-driven salespeople.

 

 

 

 

I think they'll just find more loopholes, ways to work around the law without changing anything they're doing.

The only protection we as investors have is ourselves, unfortunately :(

Here's what protects the investor better than the fiduciary: the investor...

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