Investment Advice: How Well Do You Know Your Sources?
When it comes to finance, how do you avoid information overload? When sifting through the wealth of information and opinions out there, always consider the source. Do they have your best interests at heart? Or do they answer to their own best interests and bottom line?
A fiduciary advisor, such as my independent wealth management firm LexION Capital, is legally required to act in your best interests. In my ideal world, all of Wall Street would work this way. Unfortunately, the exact opposite is true: the vast majority of Wall Street advisors are brokers, who are only held to the lower suitability standard. This lower standard enables an advisor to be paid on commission for the investments they place in client portfolios. Unless you work with an independent fiduciary, you can’t be sure that the advice you receive is intended to benefit you, not the firm or broker.
Similarly, it is in the interest of the media to get you to “tune in.” The latest sensational “news,” trends, and fads may create more headlines than simple strategies that are vetted and timeless – but those simple strategies, like a well-diversified portfolio, will help you build a smart financial foundation. As a savvy and critical consumer of information, you can stay above the hype and make smart financial decisions that are right for you.