One of the first places to seek transparency with investing is in the kind of relationship your advisor or broker has with you. There are two distinct standards of care that divide our industry:

• Suitability, which means your broker can sell you anything that they think is a reasonable fit for your situation, and
• Fiduciary, which indicates a relationship where your interests are placed above those of the advisor.

For a brief, entertaining look at the difference, watch this video: Butchers vs. Dietitians.

A recent editorial in the St. Louis Post-Dispatch discusses the topic, and highlights the conflicts of interest present not only for the advisors, but also for the politicians debating calls to impose the fiduciary standard on traditional brokers. To quote this editorial, “It would put some financial services advisers out of business. That’s OK. In fact, it’s good. The ones it puts out of business should go away and the ones that remain should be those who want to put their clients’ needs and desires above their own.”

At Hill Investment Group we believe all financial advisors should be held to a fiduciary standard and think the proposed changes are good news for investors.

Jim Gallagher of the St. Louis Post-Dispatch included both Larry Swedroe and Matt Hall in a recent piece about the 5th anniversary of the market bottom in 2009. Jim offers this advice: “Stay calm and ignore the so-called market gurus. Nobody can predict the market.”

Click here to read the full length article and to see a special video recording of Jim Gallagher and David Nicklaus exploring lessons from 2009.