Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • Debbie Young
  • Jimmy Buffett
  • Key West
  • Your Survival Guy
  • How We Are Different
  • Paris
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • The Great Reset
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • Joel Salatin and Alfie Oakes
  • World Gold Mine Production
  • Fidelity and Vanguard Since 1971

How Investor’s Are Getting Strong Armed

April 15, 2014 By E.J. Smith - Your Survival Guy

You need to sit up and pay attention. As if managing money weren’t hard enough already, there’s some fine print I want you to understand. The issue is whether your investment advisor/broker works under a fiduciary or suitability standard. There’s a big difference between the two.

When you work with a broker, he is guided by the weaker suitability standard. It basically means putting you into the best product suitable to you that’s he’s selling. Think of it like going to McDonald’s. You’re getting something your way, but it’s still basically a burger, chicken, or piece of fish.

But what if you’re a vegetarian? And you can’t possibly stomach another one of their so-called salads? You need to move on to another venue.

An investment advisor, on the other hand, must follow a strict fiduciary standard or diet, if you will. That means it’s the investment advisor’s responsibility to find the best investment for your situation, no matter what.

In my example, that may mean packing the fam back into the car to find a new place to eat.

Suitability versus  fiduciary standard is the fierce debate going on behind closed doors down in Washington. Guess who has the most seats at the table?

Big Wall Street brokerages depend on the suitability standard. They have the distribution network already in place with their army of brokers. All they need to do is shout the command and soldiers peddle the equivalent of the burgers, chicken, and fish to the uninformed prey.

But don’t take my word for it. “Those dealing with a broker are under the misconception that they’re dealing with a financial professional legally obligated to put their best interests first; that’s not the reality,” says Barbara Roper, director of investor protection at the Consumer Federation of America.

Related Posts

  • Getting It Straight
  • Americans are Getting Stronger
  • Activist Investor
  • Author
  • Recent Posts
E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith - Your Survival Guy (see all)
  • Stop America’s Zombie Apocalypse before It Starts - December 1, 2023
  • Locking In a Generational Opportunity in Fixed Income - November 30, 2023
  • It’s California vs. Florida in the Big State Debate - November 29, 2023

Dick Young’s Must Reads

  • Americans Fleeing High Tax States for Growth Corridors
  • America’s Silent Army with 423M Guns
  • Joel Salatin and Alfie Oakes, America’s Food Kings
  • Does Big Government Create Poverty?
  • Your Survival Guy: “Life on Main Street Hasn’t Been This Hard in a While”
  • Key West’s Best Burger
  • The Problem in America
  • TOP HEAVY: Focus on Big Indexing Could Cause Market Chaos
  • America’s Colleges Have Become Progressive Liberal Rat Holes
  • Thanks to America’s Worst President

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS Youngresearch.com

  • Stop America’s Zombie Apocalypse before It Starts
  • Connecticut Concedes the Fallacy of Banning Internal Combustion Engines
  • AI Running a Smarter More Efficient Inventory for Retailers
  • EVs Have 79% More Problems, and Biden is One of Them
  • $2 Billion Advanced Semiconductor Facility Planned for Arizona
  • Locking In a Generational Opportunity in Fixed Income
  • World’s Largest Container Shipper Sued for Exploitative Pandemic Behavior
  • First Class Mail Takes Backseat to Amazon Packages
  • It’s California vs. Florida in the Big State Debate
  • China Proposes Massive Integrated Super Port Across Islands

RSS Yoursurvivalguy.com

  • Stop America’s Zombie Apocalypse before It Starts
  • Survive and Thrive November 2023: A Word or Two about Your Survival Guy’s Money
  • Small Government Just Works
  • Locking In a Generational Opportunity in Fixed Income
  • RIP Charlie Munger: Keeping It Simple Never Goes out of Style
  • Explosion in Gun Ownership Creates Difficulties for Progressives
  • It’s California vs. Florida in the Big State Debate
  • Shiffrin Brings It Home with World Cup Win at Killington
  • Prepare for Solar Storms in 2024
  • Can the Supreme Court Stop Wealth Taxes Before They Start?

US Treasury Yield Curve: My Favorite Investor Tool

Five Year Treasury Yield

“The Economy Is Buried Under Trillions in Debt”

Too Late to Reform?

Stop America’s Zombie Apocalypse before It Starts

AARP Sponsors Latest Rolling Stones Concert Tour

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives