It’s official, we are into the fall, and it’s nice to see some sun. It’s not all rain (yet)! Reflecting back on the sunny days this summer, I was lucky enough to be in Salt Lake City with one of my mentors, Lee Brower, who heads up Empowered Wealth. I was grateful to receive certification as an Empowered Wealth Ambassador (see a recent blog at http://gwmteam.com/be-empowered/
It’s unusual that I pick up a newspaper during the day but during a break in our sessions, I happened upon an article in the Salt Lake Tribune business section about the Ex-New Orleans mayor Nagin being given a 10 year sentence for inappropriate actions during his two terms spanning 8 years. When Nagin was elected in 2002, he was quite vocal about his intent to break the city away from its sleazy past. Three years later, Hurricane Katrina hit. Nagin was yelling about how everyone from America was taking advantage of New Orleans during this tragic disaster.
Ten years later, this summer we learned about how this government official is supposed to be a fiduciary, serving their community’s best interest, supposedly the only standard for a government official, versus how he actually was providing “service, and is now in jail. This is not a political comment. It is a comment to note the following; when our elected officials whose only option is supposed to be serving the public with the best interest of the public in mind, we still see the public’s best interest take a back seat.
When comparing the government’s public service standards (where there is no confusion on the stated goal and rules) to a system like our country’s’ financial services system which gives the option for two standards, the Suitability standard where a client’s best interest does not have to come first, and the fiduciary standard where the clients interest is the only interest considered, it gives cause for concern. Obviously, at GWM we work for you with a fiduciary standard, using best in class subject matter experts to help you navigate the complexities of today’s financial world. (See some interesting thoughts by one of our money managers, Hanlon, in the attached article ”Why is the Average Investor’s Investment Return So Low? 4/24/14).
As much as I am proud to be American, frankly I feel our country’s financial services system is a bit broken because the actual rules provide an option for a financial services person not to choose the best interest of their client, the public, as is the clients best interest is not required. Most people are not aware that the seemingly sincere friendly professional they may have been speaking with for years has interest other than the clients own as the priority.
If you’ve checked out our website (http://gwmteam.com/
) you will likely have seen several articles from the last couple of years related to this topic. I encourage you to navigate around our site and check out the various resource articles, blogs and newsletters that are available as there is a great deal of informative and useful information available for your reference. Please make sure your friends see these articles.
Right now, even after a bit of a recent decline this week, we are at a very high level in the market. If/when the market comes down (another 2008 melt down?), those not appropriately informed (their advisor is not a fiduciary) may think they are in something conservative. Here at Goldbloom Wealth Management, we will give your friends a second opinion that has no cost to them and has high value. We provide an analysis done by our CFP’s and tell the people you refer exactly how much it actually costs them for the financial services relationship they are currently in(most times this is not already clear) . Likely more important, at this high level in the market, what would happen to their accounts if the sharp decline of 2008 were to hit again, or interest rates were to increase, or numerous other scenarios the future may hold occur?
We all receive a barrage of various financial information in the news we watch on TV or online, the newspaper, our mailbox, etc… I recently received a solicitation for a report from a not-to-be-named expert stating that in America, we have enough fuel for the next 400 years. I received another from a muni bond “expert”, and another for gold opportunities. Basically, what these experts are trying to do is sell investments, sometimes in real estate investment trusts and other types of limited partnerships. They send us very fancy colored, alluring brochures to either entice us to” buy 52 issues of their newsletter for $300”. Or, within their newsletter, they entice us to buy various shares from limited partnerships that have no liquidity and big front-end loads. If I was the typical person that didn’t specialize in or have all this financial knowledge and I received this enticing professional brochure, it might initially seem like a great idea that makes good sense. I get calls almost every week from a client who is reviewing a “special offer”….The problem is that many times these are not good investments because of several things: 1) the amount it costs, 2) the amount of risk, 3) the lack of liquidity, 4) etc...
Your friends are getting the same mail and the same offers. Most of them do not have a fiduciary relationship with their advisor. Please help them by making sure they know about our second opinion
service and refer them to www.gwmteam.com
or directly to our office for some peace of mind, and increased awareness about their holdings so they can make informed choices, especially in these times of so much uncertainty. We appreciate providing you, our clients, sleep at night “wealth preservation strategies, using the best in class fiduciary relationships so you can focus on what’s important to you and your family. You know you are watched for by me, a Trusted Advisor, whose goals are defined by each and every one of the people my team and I are grateful to be of service to.