True independence is hard to find in the financial industry. Most advisors work not just for their clients but for the company that employs them and that creates an inherent conflict of interest.
For most institutions, activity creates revenue for the firm. Unfortunately higher activity usually correlates into lower returns for their clients. Some financial institutions create the products that they sell to their clients. For those investors they end up with an in-house product and not necessarily the one that fits their plan the best. And of course there are advisors whose companies are middlemen between a company client and an investor client. The informed client has to wonder whose interest is paramount in such situations.
A recent study by Biretti Associates, concluded that less than 5% of all financial advisors enjoy the true independence that allows them to work totally in their clients best interest. We are proud at Alport Group to be among those independents.
