Tax Tip Tuesday Financial Blog Post
Data Protection Tips to Help Taxpayers and Businesses
November 28, 2017
income for life
Income for Life Retirement Strategy #4: Pulling Income from Your Investments
December 1, 2017
Show all

Why the Fiduciary Ruling Matters

fiduciary ruling

The much talked about Fiduciary Ruling expected from the Department of Labor has been delayed until July 1st, 2019. Now, I understand some of the reason for the delay. I even have a client who is an attorney for a major insurance company, and this person is leading the task for the company in dealing with DOL alternatives. Obviously, there are some issues when it comes to this ruling. After all, we have FINRA, the SEC, and now the DOL already involved. So when you add the 50 states with various interpretations of the rules of all three different regulatory bodies, what we really have is a mess. Here’s why I’m on a rant about it though.

There are basically three types of “Financial Advisors” —Insurance Agents, Stock Brokers, and Registered Investment Advisors. See notes below to understand who a fiduciary. Now here is what makes me mad!

Why I am mad

According to the Insured Retirement Institute, a trade association that represents over 150,000 financial professionals including insurance companies, asset managers, broker-dealers. Since the June 9 implementation of the new rule, the number of consumer accounts no longer overseen or serviced by an adviser increased significantly. That is according to a comment letter the IRI submitted in response to a Department of Labor request at the end of June.

“In a July 2017 survey of IRI members, a number of IRI distributor members reported that approximately 155,000 of their clients have already been orphaned, with far more accounts expected to be impacted as implementation of the rule proceeds,” according to the letter.

So basically, IF you don’t have enough money, your not important enough for us to care about! According to this ruling, I’m not even important enough for them to deal with despite having a multi-million dollar net worth! This is coming from the very group of people who are fighting the Fiduciary standard!

At my company, we have a $5,000 minimum to open an account. Many of our clients don’t have any investment accounts at all. Some are business owners. Others own and manage rental properties. A few have patents, and they are coming to me and saying, “Justin, help me!” I believe everyone should have access to a quality financial advisor that is a fiduciary. It is a disgrace to our industry when we are kicking valuable clientele to the curb.

So if you’re working with someone that says you aren’t worth it. Move on. Find someone that cares. It is your money, and no one is going to care more about your money than you! Find someone in your camp that will fight for you—someone that will worry about your bottom dollar and not their own. Money can be frustrating, but it doesn’t have to be. If you are looking to make your life financially simple, we can help! Contact us.

Comments are closed.