Ethics
ETHICS COUNTS
CHARACTER
MATTERS
KNOWLEDGE IS THE
KEY
"Being ethical is professional but the gesture goes beyond the mere
compliance with law. It means being completely honest concerning ALL FACTS.
It means more than merely NOT telling lies because an incomplete answer can
be more deceptive than a lie."
"Never forget that a half truth is a whole
lie."
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For as long as I can remember, I have commented on ethics- and the lack thereof.
I am disheartened and saddened by the lack of knowledge and ethics evidenced
in literally all aspects of the investment, insurance and the planning fields.
As an instructor in most fields- and most importantly as
an instructor in ethics- I have tried
to provide the insight that these
industries- as well as the governmental agencies of the NASD and SEC-
need to correctly identify risk and reward to the investing public. However,
I have been repeatedly rebuffed by the training, B/D, insurance firms and
planning organizations in that such commentary was detrimental to sales (whether
commissions or fees were involved) or that such constraints would rock the
boat of the "old boys" network (both true, however).
I also belong to several organizations and know a lot of the supposed "heavy
hitters" in the investment industry. To many, ethics amounts to "It's a lot
easier to talk about your ethics than to live up to them". They are consciously
circumventing the issues of ethics by applying unique rationalizations and
their own simplistic codes. (See Moral Egoism
herein.) Regardless, I have continued such practice of ethical review
since numerous agents and consumers have said "thank you" for being told
what the risks of various products actually are.
Are these comments simply cynical diatribes and unsupported railings at an
industry for the sake of making press? Well, I have also acted as an securities
arbitrator and expert witness and have counseled untold consumers. I can
tell you that until you have reviewed such activities and recognize what
should have- and could have- been done with proper knowledge, you can't realize
how embedded the situation is. Until you have sat with someone's mother who
bought penny stock- for that matter any stock- on which she knew nothing,
counseled a grandfather who bought bonds at Lincoln Savings and Loan, tried
to help a 77 year old widow who was sold a five different annuities (non
rated), ad infinitum, then you don't really know what is going on.
I do wish to make clear that, unfortunately, I am actually NOT referring
to direct scam artists. I AM referring to your golf buddy, your next door
neighbor, your friends at your church and others who simply do not
have the requisite knowledge to help you- and
should have known better. (I give each
new licensee two years of time in which to recognize their responsibilities-
up to that point, the firms may be primarily responsible for inappropriate
behavior and unsuitable investments. After that, however, and the focus
may turn more directly to the agent, since, by that time, they should
have some idea they don't know enough or have enough expertise to adequately
counsel anything but the most rudimentary of concerns. Of course, the firm
is also aware of such continued inadequacy.)
To provide a couple real life examples, just how competent is a life insurance
agent who is very proud of his service to his 2,500 clients, yet doesn't
even know the policy proceeds will be included in someone's estate for tax
purposes? He is obviously "well liked" in order to generate that much business,
but the end result of his extremely limited knowledge is poor planning for
his clients and lost money. What about a financial planner who touts his/her
sophistication and status and deals with the elderly, yet has never taken
a continuing education course in long term care and therefore dismisses the
subject- all the while charging a fee for retirement and estate planning?
Are these clients properly counseled and protected? Of course not. Yet, in
both instances, the agents clearly stated they were competent and ethical.
But that is little consolation since, with insufficient education on what
they SHOULD be doing (and where a reasonable person knew they should have
known), the end result can be a loss of money/dignity for these clients and
be just as financially and emotionally devastating as if someone simply stole
money from them. Actually, in viewing these types of situations, the
psychological trauma is even more devastating since they may have liked the
person they dealt with and are uncomfortable about proceeding against a "friend".
But, intentioned or not intentioned- the loss is there nonetheless and will
forever impact you, your family and/or your beneficiaries.
Knowledge is the key to proper planning and products. An ethical person will
recognize their limitations and seek to increase competency. If they do not,
they are unethical (or maybe stupid).
If you think my commentary is too extreme, I suggest you do like the television.
Turn me off. Otherwise, read the supporting definitions and real life examples
and make up your own mind
The list below includes all articles and specific links in alphabetical
order with accompanying description. The listings in the column to the right
are separate sections for articles and links
BIOETHICS
LINK1: This a site containing links to other areas review the issues
of all types of medical ethics- cloning, fertility, death, etc. Many of you
will be confronted with such dilemmas for your parents and other family members-
particularly if you are a trustee on a living will.
BIOETHICS LINK 2: This site
by Maurice Bernstein, MD provides articles and discussion on many of the
topics addressed above. You have the opportunity to provide your own input.
CIVIC "LEADERSHIP" LINK: This site
called CivicSource was established by the Burns Academy of Leadership to
link individuals, businesses, communities and movements with the resources
to meet the needs of a new century of civic activism and "transforming
leadership". It offers, in part, a directory of on-line and off-line resources
to support and promote public leadership.
So why is this here? Because I have not and still do not find the personal
responsibility and integrity in the people that are in the financial planning
industry or that even run the national organizations. Leadership is not just
telling people what to do and rationalizing how to get around laws, rules,
codes and ethics. A strong leader- and nation- is identified by a conviction
to high morals and ethical standards. As such, this site provides some of
the lessons we all need to adhere to and to teach our children.
ETHICS ARTICLES: Miscellaneous commentary
specifically regarding the planning, insurance and securities industries
ETHICS
LINK: Web sites and articles
ETHICS DEFINITIONS: Good overview of
current teachings in ethics and that which will be used frequently in other
areas of my material.
ETHICS GLOSSARY LINK: by
Lawrence M. Hinman
ETHICS GLOSSARY LINK 2:
Pay particular attention to this: Ethical Egoism. A moral theory
that, in its most common version (universal ethical egoism) states that each
person ought to act in his or her own Self-interest.
ETHICS LINK 1: Direct link
to extensive commentary on many issues of ethics.
ETHICS AND SUICIDE
LINK: Extensive commentary on all areas of suicide- assisted suicide,
grief, research. Very extensive
ETHICS TEXT: Commentary regarding real life examples
of ethical problems in the industry. (It's not pretty)
EUTHANASIA AND ETHICS
LINK: Extensive resources including court decisions, legislation, basic
documents, statistical information and web sites dedicated to euthanasia
issues
LEGAL ETHICS
OPINIONS AND RESOURCES LINK: I don't think it is used much.
Integrity means avoiding any communication that is deceptive, full of
guile or beneath the dignity of people. "A lie is any communication with
intent to deceive." Whether we communicate with words or behavior, if we
have integrity, our intent cannot be to deceive.
Stephen R. Covey
Moral behavior is the product of training, not reflection.
Honest people don't have to think how to answer under oath.
Professor Michael Levin
Property may be destroyed and money may lose its purchasing power; but,
character, health, knowledge and good judgment will always be in demand under
all conditions
Roger Babson
Integrity is the first step to true greatness. Men love to praise it,
but are slow to practice it. To maintain it in high places costs self-denial;
in all places it is liable to opposition, but its end is glorious, and the
universe will yet do it homage.
Charles Simmons
THE ONLY THING NECESSARY FOR EVIL TO FLOURISH IS FOR GOOD MEN
AND WOMEN TO SAY AND DO NOTHING
Edmund Burke
The TRUTH is Incontrovertible. Malice may attack it and Ignorance
may deride it, but in the end...there It is.
Sir Winston Churchill
Being truthful when you know it will cost you is the true test of
honesty.
Dave Weinbaum
"Integrity is the foundation upon which all of your other values
are built."
Brian Tracy
Men occasionally stumble over the truth, but most of them pick themselves
up and hurry off as if nothing ever happened.
Sir Winston Churchill
"Facts do not cease to exist because they are ignored."
Aldous Huxley
In the End; we will remember not the words of our enemies; but the
silence of our friends.
Martin Luther King Jr.
Our lives begin to end the day we become silent about things that
matter.
Martin Luther King, Jr.
Honesty isn't any policy at all; it's a state of mind or it isn't
honesty
Eugene L'Hote
It is always easier to fight for one's principles than to live up
to them
Alfred Adler
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