Manonthestreet
Diamond Member
- May 20, 2014
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The Labor Department's fiduciary rule is aimed at stopping the $17 billion a year the government claims investors waste in exorbitant fees. The idea is that the regulation will stop advisers from putting their own interests in earning high commissions and fees over clients' interests in obtaining the best investments at the lowest prices.
The final rule contained several important concessions to the advice industry that will make implementation easier for financial advisers. But there still appears to be enough meat to the rule that advisers will have litigation to fear if they can't prove their retirement advice prioritized the client over themselves.
The DOL fiduciary rule will forever change financial advice, and the industry has to adapt
Have a 401 thru my employer that engages a major financial house to administrate. You can hire them or go self directed. Choice of investments in the fund are weighted slightly in favor of the major. I have chosen to make my own decisions with zero of my money being in their funds. Talked to several at work on what they were doing seems most are leaving it up to the major who puts all or most of their money in their funds. Now the best performing choice has been the company stock over the last couple yrs with over a clean double, yet the major has not bought any for the guys entrusting them to make the best choices.
According to the article the biggest effect will be to force mergers......doesn't seem like they really gave a damn about the avg investor who could have filed suit anyway without this if he thought he was purposely given bad advice to collect fees.
The final rule contained several important concessions to the advice industry that will make implementation easier for financial advisers. But there still appears to be enough meat to the rule that advisers will have litigation to fear if they can't prove their retirement advice prioritized the client over themselves.
The DOL fiduciary rule will forever change financial advice, and the industry has to adapt
Have a 401 thru my employer that engages a major financial house to administrate. You can hire them or go self directed. Choice of investments in the fund are weighted slightly in favor of the major. I have chosen to make my own decisions with zero of my money being in their funds. Talked to several at work on what they were doing seems most are leaving it up to the major who puts all or most of their money in their funds. Now the best performing choice has been the company stock over the last couple yrs with over a clean double, yet the major has not bought any for the guys entrusting them to make the best choices.
According to the article the biggest effect will be to force mergers......doesn't seem like they really gave a damn about the avg investor who could have filed suit anyway without this if he thought he was purposely given bad advice to collect fees.