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Is BAD Advice Better than NO Advice?
By JLP | September 18, 2006
Liz Pulliam Weston thinks so. I’m not so sure. As Liz states in her article, the “advice-givers” had to pay fines for:
Allowing favored big investors, including hedge funds, to trade after hours at the ultimate expense of smaller investors.
Touting stocks to credulous investors while quietly dumping those same equities at fat profits.
Pushing high-cost products, such as variable annuities, on vulnerable seniors and others for whom the investments were clearly unsuitable.
This doesn’t give me a lot of confidence in the “advice-giver” doing what’s best for the 401(k) participant.
Topics: 401(k), Retirement Planning | 1 Comment »
September 18th, 2006 at 12:33 pm
It’s also amazing what people are willing to put up with in terms of their risks for their 401(k)’s. It just goes to show that most investment advisors are sales people first, advisors second – its the one thing that really bugs me about the industry.