Topic: How To Invest

What is Pat’s commentary for the week of September 17, 2013?

Article Excerpt

Friends of mine who work as brokers sometimes say, “You must have an awful opinion of brokers, judging by the terrible things you say about us.” That’s a misconception. Brokers are human—some are people of high integrity and others aren’t. But I do have a low opinion of many of today’s investment products and services. The core of the problem is that the financial industry offers its salespeople incentives to give clients bad advice. A broker can sell his or her clients a wide variety of products and services that will bring the broker a wide range of fees and commissions, from high to low. As a general rule, the more income a broker can earn from selling a particular investment, the poorer the match between the investment and the interests of the client. As you know, I feel your best way to profit in the long term is to buy a portfolio of well-established stocks and make changes only when…

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