Betraying Bogle

At the top at the Institute for the Fiduciary Standard stands the towering figure of Mr. John Bogle.

For four decades he has been America’s great crusader for the fiduciary standard, for guiding investors in their best interests.

The very core of his message has been:

Invest in whole major asset classes, via index funds, to avoid other investments’ higher financial fees (and risks).

Look past the short-term ups and downs to focus on the longer term of your goals, to see the advantage of avoiding higher fees and risks.

However, others at the Institute appear to represent investment advisor training that’s just the opposite, and be working to brand that training as”fiduciary”:

Starting with asset classes, use the single-year view of modern portfolio theory and the misleading labels commonly used with it, especially “risk,” to divert the investor’s focus to short-term return-rate variations for the individual year, where he cannot see where he’s going or see the long-term compounded cost of financial fees;

Then for actual placement of the investor’s money, switch from investment in the investor’s chosen asset classes to pick from the casino of riskier higher-fee gambles within the asset classes, and do so under the false appearance of faithful investment in the investor’s chosen asset classes.

At the Institute for the Fiduciary Standard, there may be changes ahead. There certainly should be changes ahead.

 

 

 

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