Betterment accidentally pulls an inflamatory blog post

According to an article on RIA Biz, BettermentLLC, an online investment adviser, has removed a post from its website after RIAs expressed “outrage” over a picture that appeared to equate pigs and advisers.  However, Betterment’s founder said it was a technical glitch – and not public pressure – that resulted in the post begin removed from their website.

The title of the post was “Financial Advisors are Bad for your Wealth” and it was originally posted on April 12th.  The post, in part, cites a study by the National Bureau of Economic research that found that many advisors will reinforce harmful behavior of their clients because it is in their interest to do so.  The motivation for this, according to the post, is larger commissions, which results in the “advisor/broker encourag[ing] bad behavior like frequent trading and higher-fee funds.”  The original post was updated a few days later on April 17th to clarify the term “financial advisor” meant advisors who receive commission payments for brokering products, and Betterment “respect[s] and appreciates[s] the work of good investment advisors”.

Amidst all the backlash against Betterment, Steve Lockshin offered support of Betterment, who he said can serve unsophisticated and smaller investors through their “fantastic” technology.

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