TRUMP WANTS TO ROLL BACK INVESTOR PROTECTION

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Re: TRUMP WANTS TO ROLL BACK INVESTOR PROTECTION

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GailL1 wrote:
There is nothing wrong with using a broker/agent who does not have a fiduciary standard. But this sort of relationship should be for those who monitors their investments closely and kind of know what balance they should have at any given time in their life for maximum safety or who knows they want to take more chances or who don't need management and only use their services when they want to conduct a transaction. 

Why would anyone need, & especially pay a commission to, such a broker/agent?  What useful service do they provide?  Easy enough for our knowledgeable investor to conduct their own transactions...right?  Faster too...or do I misunderstand the point?

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ChasKy53 wrote

And exactly who is the all in "costing us all more"?

----------------------------------------------------

Everybody who uses a financial advisor because it will require more school time, 

more recertification time.  We would be changing a salesman who only has a suitability standard to one that has a fiduciary standard.  If they are not going to work off of commission, they will have to work on a fee base which maybe more costly to the client. More time in reviewing portfolios based on periodic scheduled reviews with their clients.  

 

There is nothing wrong with using a broker/agent who does not have a fiduciary standard. But this sort of relationship should be for those who monitors their investments closely and kind of know what balance they should have at any given time in their life for maximum safety or who knows they want to take more chances or who don't need management and only use their services when they want to conduct a transaction.

 

Anybody that is beginning to invest via a financial advisor needs to know who this person is and their "standards" requirement.  The salesmen type only have a "suitability standard" - meaning they don't really have to know you and the investments they make for you today won't send you into financial despair tomorrow.  Much different than those who are ruled by the fiduciary standard.

 

The only thing that a new investor needs to know and ask is "are you an advisor ruled by the fiduciary rule" and get proper validation of this - shown in the agreement.  Past that, it is similar to picking a doctor - meaning some are better than others in their professional practice but still work for their patients best benefit.  

 

Ya know - I don't mind government oversite but sometimes I just feel that instead of helping us get smarter in this world we live in, that government wants to jump over that part and make a rule that relieves people of having to learn anything.

I consider this to be a dumbing down of America.

IMO

 


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: TRUMP WANTS TO ROLL BACK INVESTOR PROTECTION

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@GailL1 wrote:

 

 

Once again, government instead of teaching or even warning, wants to dictate, costing us all more.  

 


The Right amazes me. They harp on individual responsibility and want even poor people to invest and save. Then when the government wants to put protections in to protect the most vulnerable, the Right jumps in to preach that this is government intrusion.

 

And exactly who is the all in "costing us all more"?

 


"The only thing man learns from history is man learns nothing from history"
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President Obama attempted to expand the "fiduciary standard" to all levels of investment handlers; some are ONLY salesmen.  The "fiduciary standard" already existed in those, usually fee-based, advisors.

 

 FIDUCIARY

 

"SUITABILITY VS. FIDUCIARY STANDARDS

If your investment advisor is a Registered Investment Advisor, he or she does share fiduciary responsibility with the investment committee. On the other hand, a broker, who works for a brokers-dealer, may not. Some brokerage firms don't want or allow their brokers to be fiduciaries.

 

Investment advisors, who are usually fee-based, are bound to a fiduciary standard that was established as part of the Investment Advisors Act of 1940. They can be regulated by the SEC or state securities regulators. The act is pretty specific in defining what a fiduciary means, and it stipulates a duty of loyalty and care, which simply means that the advisor must put their client's interests above their own. For example, the advisor cannot buy securities for his or her account prior to buying them for a client, and is prohibited from making trades that may result in higher commissions for the advisor or his or her investment firm."

 

The "fiduciary standard" exist  in many different types of relationships between a trustee and a beneficiary.  Guardians have a fiduciary responsibility to their wards.  See the link for more -

 

There are professionals and amateurs or even scammers in many occupations.

We all have to exert due diligence to find the best for the job.

 

People, especially when it concerns their money, should know the difference in these financial handlers but many times they are only looking for the cheapest route.

 

Once again, government instead of teaching or even warning, wants to dictate, costing us all more.   We could solve this just with some big bold writing on a paper given to them and acknowledged before the investment discussion starts.

 

 

 

 

 


* * * * It's Always Something . . . Roseanne Roseannadanna
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afisher wrote:

    Apparently the supporters of less transparency seem to believe that a certificate on the wall instantaneously makes an advisor  only do good for consumers and not themselve.  Or better yet - do your own research on each and every investment that is placed in a 401K / IRA, etc.   

 

Exactly my thoughts.  Maybe we can fit that in after researching our medical issues so our doctors aren't responsible for their advice or doing construction research so the home builder isn't responsible for the integrity of the building they're being paid to build.  etc., etc.,

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    Apparently the supporters of less transparency seem to believe that a certificate on the wall instantaneously makes an advisor  only do good for consumers and not themselve.  Or better yet - do your own research on each and every investment that is placed in a 401K / IRA, etc.   

 

      As it is Annual Meeting time in the investment world, time to read all the statements that are sent to shareholders each year.   The average report is approx 1/3 inch thick, about 200 pages in length and anyone not in the business is lost.    To measure that challenge - read any of the FDA rules and then try and make someone with a wealth of experience in the field to test their knowledge.   

 

       Back in 08, I called a broker about one of my investments and he said Sell....and no he wasn't quite as fanatical as seen on TV.   But he warned, if there is part of the business that smells bad, then the entire business is suspect.  

       Fast forward and I received a call from him regarding Wells Fargo - which wanted my business.   I repeated the sales pitch he gave me in 08.   .....   And then my account was transferred to another financial manager.    HMMMMMM

 

       Some dude once called and asked me if I wanted to invest in derivates....I querried - why would I buy something I don't understand?    End of phone call.     Do your homework - that is a truly bad idea if most of what is written in a language that is not meant to be comprehended by the average person.   

 

         I just opened one of the Stock Reports - and it shows a graph with lines going horizontally.   Weirdly, there is no Y axix to determine if the horizontal line is valuable.  

 

      All of those examples are why President Obama put those rules in place - to protect consumers who have little time and/or expertise, but are attempting to make their savings work for them.  

 

       Republicans are against those rules.   Now why is that?    

PRO-LIFE is Affordable Healthcare for ALL .
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Mandm84 

 The housing bubble, all those loans made to people who couldn't afford them when banks knew that they would end up in default-  those things that led to a near depression-gone.

 Helps people like trump and all those swampland creatures he surrounded himself with in the White House.  sure doesn't do anything for the average American, other than risk any savings that he or she might have. 

 And really,  why should trump have a clue? Anytime he's needed money he  has swindled people, asked daddy for it, or declared bankruptcy.  this has to be the most out of touch president we have ever had .

 

And yet,  those on the right who will also be adversely impacted by his ridiculous EOs and proposed laws,  keep cheering this fool on.

 I guess that to outages that we've heard all our lives are true the first pertaining to Trump-" there's no fool like an old fool."

and to his supporters,  PT Barnum's famous adage, "there's a sucker born every minute." 

Unfortunately all of this is at the detriment of our country.

 

Gee, I miss having a real President!!
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Message 8 of 10

The fiduciary rule seems like a good basis for nearly any business agreement; that all signatories know the true situation, and are due disclosure. Why should fiduciaries, who are being paid to work in a client's interest be against such a rule?

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He signed a memorandum back in Feb. 2017 halting the implementation on April 01,2017.  The only thing he is doing now is delaying it again, most likely to get rid of it cause it would cost every investor more.

 

BTW, we already have Fiduciaries - want one, all you have to do is find one and pay their fees.  Look them up in an area near you; their credentials should be proudly displayed in their office.  

 

If you are not savy in the world of investing - take a course, do some reading -'I think AARP actually sponsors some of these type classes.  

 

People le need to take some responsibility FOR THEIR MONEY and understand where it is hanging out to make more.

 

If you need a fidicuary - hire one.

 

 


* * * * It's Always Something . . . Roseanne Roseannadanna
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TRUMP WANTS TO ROLL BACK INVESTOR PROTECTION

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At President Trump's direction , his Department of Labor is considering whether to revise or roll back an Obama - era measure called " Fiduciary Rule ". President Obama put that rule in place to Protect retirement savers like us from self interested , greedy brokers giving us poor advice and losing our money.

 

Oh Yeah More Swamp Draining to help the Middle Class ???

 

 

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