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Robin Powell: Clients need protecting from advisers' ignorance

“Solving the problem,” argue researchers, “would instead require improved education or screening of advisers”. Such a move would doubtless go down like a lead balloon. Alas, it is, I agree, a necessity. ....

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ETFs are healthier retirement options, so why don't more advisers use them?


The Globe and Mail
Andrew Hallam
Published January 12, 2021
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When I was in elementary school in the late 1970s, many of my teachers smoked. I remember knocking on the staff room door at lunch and, as the door opened, a wall of smoke hit my face.
These days, teachers can’t smoke in schools. Even if they could, few would. It’s medically proven to shorten people’s lives. The medical community was likely among the first to butt out: They probably saw the science first.
You might think financial advisers have the same forward thinking when it comes to what’s good for them in their own industry. But if they did, why would so many still recommend actively managed funds when index funds and ETFs are healthier retirement options? They perform much better because of their lower fees. ....

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