Words as Weapons: The Power of Euphemisms

Words are powerful tools. They can persuade, manipulate, comfort, or even deceive, shaping our actions and beliefs in subtle ways. Take, for example, the recent election cycle—words were used as weapons to sway public opinion. If you needed proof, just look at how words were strategically deployed.

One of the most enduring phrases we’ve all heard is:
“The pen is mightier than the sword.”
This idea was first recorded by the Assyrian sage Ahiqar in the 7th century BC. According to Wikipedia, his writings from about 500 BC included a version stating, “The word is mightier than the sword.”

In today’s world, one of the most effective and often overlooked weapons is the euphemism.

What is a Euphemism?

A euphemism is a term or phrase used in place of one that might be considered offensive, harsh, or unpleasant. It’s often used to soften a difficult truth, make something unpleasant sound more acceptable, or avoid offending anyone.

For example:

• “Collateral damage” is a euphemism for the unintended death or injury of civilians or damage to non-military property during an attack.

• “Friendly fire” is another euphemism used to describe when allies accidentally harm each other during combat.

Euphemisms are a clever way to make something negative sound less harmful—or, in some cases, even positive. It’s a trick that can be used to downplay the harsh realities of a situation, especially when you need to sell something.

The 2018 Fiduciary Standard Exemption: A Euphemism in Action

Now, let’s turn to something that directly affects your finances: the Fiduciary Standard. Starting in 2018, a rule was set to require financial advisors to act in your best interest when recommending investments. Sounds straightforward, right? Well, not so fast.

To circumvent this rule, the financial industry introduced the Best Interests Contract Exemption (BIC). At first glance, it sounds harmless—or even beneficial. But let’s break it down:

• The BIC allows financial advisors to sell you products that may not be in your best interest, all while claiming to act in your best interest.

• The name itself is a euphemism. The term “Best Interest Contract” sounds reassuring, but it leaves out the word “exemption”—which is crucial. By omitting “exemption,” it hides the fact that this document allows brokers to bypass the Fiduciary Standard.

Why the BIC is a Problem

If the product was truly in your best interest, why would you need a contract saying otherwise?
The BIC is essentially a legal loophole that permits advisors to sell financial products that are not the best choice for you—products that help line the advisor’s pockets instead. It’s like giving a license to sell “garbage” while calling it gold.

Think of it like this:

• Option A: The advisor is either incompetent or unwilling to face legal consequences (i.e., getting sued).

• Option B: The advisor is knowingly selling you a subpar product for their own financial gain.

So, when the time comes in 2018 and you’re asked to sign the Best Interest Contract, be aware of what you’re agreeing to. It’s like walking into a war zone where you might end up as collateral damage or friendly fire.

The Bottom Line

If you don’t want to become collateral damage, consider working with a true fiduciary—someone who is legally obligated to act in your best interest at all times. At Gainplan, we are fiduciaries, and we’ll help you navigate these complex financial decisions with your best interests at heart.

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