“The [fiduciary] rule is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.” This quote came from Gary Cohn, the White House National Economic Council Director as a reason to repeal the Fiduciary Rule.
This statement sounds like a great reason to rescind the Fiduciary Rule. Until you realize that the statement is completely erroneous.
Rescinding the Fiduciary Duty Rule isn’t at all like adding unhealthy food to a menu as Gary Cohn suggests.
It’s like your dietician recommending you eat Ding Dongs rather than eating healthy food because Hostess offered the dietician kickbacks and incentives to recommend those Ding Dongs.
Can you imagine your doctor getting away with that kind of behavior? Then defending it by claiming he or she didn’t want to limit your choices or infantilize you by telling you what you could or couldn’t eat?
Cohn’s quote is no different than that doctor being quoted saying “Why should a dietary recommendation be limited to healthy foods? A calorie is a calorie, right?”
Retirement investors pay advisers to recommend investments, just as your dietician is paid to provide nutrition advice.
It’s pretty simple. If you want a conflicted adviser that puts their interests ahead of yours we can certainly recommend some firms for you to talk to.
If you would like a fiduciary with no conflicts to advise you, give us a call at 303.725.7086. Or email Michele Suriano at MSuriano@CastleRockInvesting.com. We will be happy to provide advice that puts your interests first and we don’t accept payments from Ding Dongs.