I wish he would push to change the Great Depression era law that started this fixed fee nonsense. There should be no fees, and certainly no fixed fee as a percentage of portfolio size— this gives NO incentive for the investment professional to earn money for their client— just find the rich and ignorant (elderly often) clients and kick back and retire early. They should ONLY get paid when they make money for their client, as before the “Great Crash”. For example, for every percent you can beat inflation and taxes, you get a fixed percentage of the net capital gains. I have yet to meet a financial advisor who would be comfortable with this, they love getting a fixed percentage of your assets regardless of how your portfolio performs; wish my job were like that.
Just saw this about Ezekiel Emaneul-
“Rather, it requires anyone who sells retirement advice for a living to plainly state their fees upfront and to point out to clients when two funds achieve the same purpose but one is cheaper.
“Like most Americans you probably think, “Well, isn’t my advisor already doing this for me?” The answer, unfortunately, is almost certainly “No.”
“hat’s why the fiduciary rule is so important. The new regulation requires your advisor to be clear about where he or she stands. Naturally, some of them don’t like that.”
The rule is a good one, like requiring ingredients and the point of origin to be listed on food labels. What would be the motivation of not making this information known to the consumer? The rule should be implemented.
The writer totally misrepresents the facts around the fiduciary rule - the article is garbage.
“Delaying implementation of the Labor Department rule is the first step Republicans and the finance industry are eyeing as part of a broader overhaul of the measure. GOP Lawmakers have argued that the Securities and Exchange Commission, not the Labor Department, should oversee and regulate any changes related to financial firms.
Banks, asset managers and insurers have been fighting the fiduciary rule ever since the Labor Department approved it last year, saying the regulation could raise the costs of providing advice and make it harder to serve lower-income clients. Business groups including the U.S. Chamber of Commerce and American Council of Life Insurers have sued to try to block it.”
Went to my broker yesterday (Edward Jones). Due to this new rule and the worry about keeping it to a T, they are going to get rid of the 3-5% ONE TIME cost to invest with them, and are going to charge 1.35% a year EVERY YEAR... Thats about 40% over 30 years instead of 3-5% (of a smaller amount)...
.
HORRIBLE result of the bill....