Warrenlm
03-06-2016, 09:02 AM
This all may be coming to an end thanks to the recently issued "fiduciary rule."
Courtesy of Forbes (http://www.forbes.com/sites/maggiemcgrath/2016/02/11/elizabeth-warren-slams-financial-firms-two-faced-responses-to-dol-fiduciary-rule/#2e8048d9443e), here is some background on what this rule is:
In April, the Department of Labor issued a fiduciary rule proposing that a “best interest standard” be applied across a broader range of investing advice such that any advisor getting paid to provide personalized investment advice — on things like what assets to buy or whether or not to roll a 401k into an IRA — be considered a fiduciary and have to put their clients’ interests first. Currently, brokers and advisors must only comply with a "suitability standard," which means that they must make recommendations that are suitable to an individual’s investment needs, but they can also consider their own and their firms’ interests.
In the months since the DOL put forth this fiduciary rule, Republicans and financial firms have excoriated the proposal as being bad for America and placing an undue burden on firms’ business. It turns out that putting your clients' interests ahead of your own is practically impossible, and here is, according to Wall Street, why: Is This The End Of CNBC As We Know It? | Zero Hedge (http://www.zerohedge.com/news/2016-03-06/end-cnbc-we-know-it)
I've often thought when I have heard an advisor advise, "and just where is YOUR money, son?" Especially when the TVTOUTs talk.
Courtesy of Forbes (http://www.forbes.com/sites/maggiemcgrath/2016/02/11/elizabeth-warren-slams-financial-firms-two-faced-responses-to-dol-fiduciary-rule/#2e8048d9443e), here is some background on what this rule is:
In April, the Department of Labor issued a fiduciary rule proposing that a “best interest standard” be applied across a broader range of investing advice such that any advisor getting paid to provide personalized investment advice — on things like what assets to buy or whether or not to roll a 401k into an IRA — be considered a fiduciary and have to put their clients’ interests first. Currently, brokers and advisors must only comply with a "suitability standard," which means that they must make recommendations that are suitable to an individual’s investment needs, but they can also consider their own and their firms’ interests.
In the months since the DOL put forth this fiduciary rule, Republicans and financial firms have excoriated the proposal as being bad for America and placing an undue burden on firms’ business. It turns out that putting your clients' interests ahead of your own is practically impossible, and here is, according to Wall Street, why: Is This The End Of CNBC As We Know It? | Zero Hedge (http://www.zerohedge.com/news/2016-03-06/end-cnbc-we-know-it)
I've often thought when I have heard an advisor advise, "and just where is YOUR money, son?" Especially when the TVTOUTs talk.