It’s Monday and I have a question.
Today my question is really an informational one. So much happened in the financial world in the past week that I hardly know where to start. One of the big things that happened was that the a new Fiduciary Rule went into effect.
The fiduciary rule basically states that advisors, brokers, insurance agents, etc who deal with retirement accounts must put the interests of their customers ahead of their own. Raise you hand if you thought they already had to do that. Well, they didn’t and many didn’t that’s why the new law.
Even though the new rule requires advisers making recommendations on retirement accounts, and on rollovers from workplace plans into I.R.A.s, are required to charge reasonable fees, and they are not permitted to make misleading statements about investment transactions, their compensation or any conflicts of interest, don’t get too comfortable because they have already found a way around it.
The big brokers are ready and they want to shift clients from individual accounts to advisory accounts where they charge quarterly fees. If you make a lot of trades, this may not be bad, but if you are buy’em and hold’em kind of person, you could see your fees rise. They should contact you before they make the shift and if they do carefully weigh your options and the fees. There is a lot more to this but I’m running out of time.
It should be noted that this is only the first part of the law and the other parts have been delayed until January or never. In fact, the House has already passed a law to repeal it. Seriously! And, that’s why minding your money is so important – no one and I mean no one is going to care as much about keeping your money in your pocket as you are.
And, that’s the minute for today. Let me know what you think. Write me at firstname.lastname@example.org.
Thanks for listening and as always remember that minding your money really is the path to a richer life!