{"id":291,"date":"2014-12-29T16:33:28","date_gmt":"2014-12-29T21:33:28","guid":{"rendered":"https:\/\/paddenfinancial.com\/?p=291"},"modified":"2014-12-29T16:33:55","modified_gmt":"2014-12-29T21:33:55","slug":"on-the-right-side-of-history","status":"publish","type":"post","link":"https:\/\/paddenfinancial.com\/on-the-right-side-of-history\/","title":{"rendered":"On The Right Side of History"},"content":{"rendered":"
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John \u201cJack\u201d Bogle, founder of the $3 trillion Vanguard Group and the world\u2019s first index mutual fund, spoke to the Alliance of Comprehensive Planners (ACP) recently in Philadelphia at our annual conference.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Why did one of the investment industry\u2019s \u201cGiants of the 20th\u00a0Century\u201d choose to speak to us for free? He summed it up succinctly: \u201cWe are on the right side of history.\u201d<\/p>\n

Bogle appreciated our commitment to comprehensive financial planning based on a fiduciary relationship with our clients. \u201cI\u2019ve always liked the financial planning field, particularly the fee-only field,\u201d he said.<\/p>\n

Bogle was well aware of ACP\u2019s emphasis on client service. \u201cUltimately, clients have to be served\u2026groups like yours, people like you, are perfectly capable of being a great place to begin all that,\u201d he said.<\/p>\n

He also stressed the need for long-term relationships and a long-term investment perspective. \u201cYour clients and our clients are or should be investing for a lifetime\u2026investing for 80 years,\u201d Bogle said. \u201cThink of active management this way\u2026the average portfolio manager lasts for seven years, and 50% of mutual funds go out of business every 10 years.\u201d<\/p>\n

He observed that the possibility of outperforming the market over that time is \u201csubstantively zero.\u201d<\/p>\n

And these plans need to be implemented in a way that keeps costs low, such as a passive, low-cost index approach.<\/p>\n

\u201cTrading is murdering,\u201d Bogle said. \u201cThe more you trade, the less you make.\u201d<\/p>\n

His prescription for a better financial world fit right in with the ACP philosophy. When asked what he would do to change the financial world for the better, Bogle called for three things: 1) a federal standard fiduciary duty for investment advisors, 2) investor education, and 3) a change in corporate focus.<\/p>\n

He explained his views on the fiduciary duty owed to customers very simply: \u201cAnybody who touches other people\u2019s money is a fiduciary. \u2026Did I make myself clear there?\u201d<\/p>\n

Bogle said he saw investor education as one of the key services provided by ACP advisors. \u201cYou all are accomplishing this every day,\u201d he said.<\/p>\n

He also stated that the knowledge and hand holding provided by financial planners is invaluable. Bogle particularly noted the importance of understanding cost \u2013 lifetime cost.<\/p>\n

Finally, he issued a challenge to current management in the financial industry. \u201cDirectors have to wake up and make sure their companies are run in the interest not of their managements, not in their political contributions, and not in their executive compensation, but in the interest of their stockholders,\u201d Bogle said.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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His lifetime of achievements in the financial services industry adds heft and credibility to his opinions. We were honored to have Bogle address our group and endorse our approach.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

John \u201cJack\u201d Bogle, founder of the $3 trillion Vanguard Group and the world\u2019s first index mutual fund, spoke to the Alliance of Comprehensive Planners (ACP) recently in Philadelphia at our annual conference. [More]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[8,9,6,7],"_links":{"self":[{"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/posts\/291"}],"collection":[{"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/comments?post=291"}],"version-history":[{"count":0,"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/posts\/291\/revisions"}],"wp:attachment":[{"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/media?parent=291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/categories?post=291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/paddenfinancial.com\/wp-json\/wp\/v2\/tags?post=291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}