Investors Need Independent Advisors

In today's Wall Street Journal there's a very good article headlined "Wary Investors Are Seeking Out Objective Voices" by Anne Tergesen and Jane Kim. It essentially summarizes the merits of using independent financial advisors (like me) instead of people affiliated with financial institutions. The full article can be found at

http://online.wsj.com/article/SB10001424052970204423804574288130378749314.html#articleTabs%3Darticle

As noted in this article, Independent Registered Investment Advisors (RIA - again, like me) are held to a higher fiduciary standard to work in a client's best interests. They must fully and transparently disclose their costs and how their firm operates. Most provide a full range of financial planning advice for a percentage fee of assets under management and/or an hourly charge.

In contrast, brokers (affiliated people may call themselves financial 'advisors' or 'consultants' but in truth they are brokers) are in the business of selling their firm's preferred brokerage products to make commissions. They may not be working on a client's behalf but rather their own, and believe me, I've seen that happen dozens of times over the years. Of course, brokers do a great job of burying these commissions from sight through a variety of hidden fees.

I've said it many times: It will take an independent fee-based advisor years to make the same compensation that a broker makes with one product sale commission. Who do you think is more likely to want to establish a thoughtful, long-term client relationship?

The article also recommends people look for advisors who have the Certified Financial Planner credential (again - like me!) The testing, ethics, and experience required to obtain that designation are good indications that you'll be working with someone you can trust.

This article is a must-read and must-report-on for someone in my line of work. And to find out more about changing the way people invest, contact me at VW Advisors, West Des Moines, IA Phone 515-223-6068!

Vehicle vs. Pedestrian

Des Moines has recently seen a rash of transit bus-pedestrian accidents. In most of these the bus driver has (allegedly) been at fault, and both the driver and transit authority have been the objects of scorn and condemnation.

Without making judgements as to blame, it would seem prudent for people to simply heed the warning I've given my children since they were young: In the battle between the vehicle and the pedestrian, the vehicle always wins. So always assume the vehicle has the right-of-way.

Establishing fault in a vehicle-pedestrian accident might be an important future legal item, but it isn't a major concern to the victim lying in a hospital bed - or coffin.

The Idea

The world would be a better place if more people made their own decisions. Don't you agree? Whoops!

Too many people simply believe what others tell them, with the unfortunate consequence of allowing those who control the message to also control them.

Follow the idea, not person who communicates it. Think about it, then make up your own mind.

You can start with this blog.