Posted by bad_luck on 2/5/2017 1:22:00 AM (view original):
One example, there are insurance agents who sell annuities. They aren't fiduciaries.

Insurance agents need a series 6 license to sell variable annuities which makes them a fiduciary so I assume you're referring to those agents that sell only fixed annuities. Fixed annuities are a low risk, tax deferred, principle guaranteed investment vehicle with a promised income stream at maturity.....

Big frickin deal!!! No one is getting screwed over with fixed annuities. The fiduciary rule was a worthless, well named, regulation that only burdens everyone with more sales steps and paperwork.

Bottom line is if you as a consumer don't think your agent/advisor is giving you the best advice, or you don't understand what they are selling.... Then find a new agent. That's the smart play.

Take a look at what happens when you greatly reduce commissions for professional advice/fund management....

Then ask yourself is this a good thing for people that don't have a lot of money (I.e under $250k) and want to invest for retirement?

Negatives of the new fiduciary rule include:

• Fewer products to choose from. A key way that financial firms likely will reduce product price differences is to eliminate products. Several firms say that is precisely what they plan to do. "In one case, the firm was considering decreasing the number of mutual funds and annuities available to its advisors by as much as 80%," Morningstar Inc. says in a report it has not yet posted online.
• More focus on passive products. If you like actively managed mutual funds, you may find fewer of them offered by your 401(k) plan or broker. Passive investments tend to be lower cost, and financial firms want narrower ranges of fees on comparable investments.
• Being forced into a fee-based arrangement. Fees on assets are not a bad thing per se. Unlike commissions on transactions, they avoid the possibility that your broker churns your account to generate fees. But being switched to fees can be negative if you're someone who does not like unsolicited change in your financial services arrangements or the menu of investments available to you or if the change is forced on you on a take-it-or-leave-it basis.
• Having your account closed. Firms ending or narrowing their reliance on commissions may close small accounts that don't hold enough in assets to be profitable on a fee basis.
• Being shifted to a robo-advisor account. If your brokerage or advisory firm decides it can't make money servicing your small account, it may offer you the option of being shifted to a robo-advisor. The robo-advisor may not be to your liking if it offers investments you don't want or limited contact with a human advisor.
• Having your investment management outsourced. If your financial firm can't handle your portfolio profitably on its own, it may outsource it. In turn, that subadvisor may cut costs by relying on less expensive money managers and research, which may not be as good as their in-house resources.

^^Every time the government gets involved in the marketplace there is a market reaction.... Here are the unintended consequences of the fiduciary rule because BL is mad that some insurance agents can offer fixed annuities without being a fiduciary.

Defense giant Lockheed Martin has agreed to sell 90 new F-35 fighter jets to the US Defense Department for $8.5 billion -- a deal that amounts to more than $700 million in savings over the last batch of aircraft delivered.

Lockheed Martin credited President Donald Trump for helping to "accelerate negotiations" and "drive down the price" of what is already the most expensive weapons program in history.


^^^Trump just saved taxpayers $700 million dollars. Much better negotiator than his predecessor.

Posted by wylie715 on 2/5/2017 3:11:00 AM (view original):

Posted by MikeT23 on 2/4/2017 7:34:00 AM (view original):

Posted by wylie715 on 2/4/2017 1:05:00 AM (view original):

Posted by MikeT23 on 2/3/2017 7:33:00 PM (view original):
You lean so far left that I wouldn't be surprised if you were the asswipe he pepper-spayed the teenage girl at UC-Berk.

Any opinion you state, or "point" you make, can't be taken seriously. You're nothing more than bizzaro world moy.

You think I lean so far to the left? Because it looks to me like every action Trump has taken has been to benefit Trump and everyone else can get ******? That makes me a liberal? So be it. Not that Trump is the only one. Every reasonably successful politician is the same to some extent. Trump just takes it much further.

Nobody is asking to take my opinion seriously. You don't have to even read them. I couldn't care less what you, or anyone else on this website thinks of me.

You're right. I'll place you in the "all3/bracco" category. Have a good day.

Okay, so we disagree, but that is a low blow!!!

High, low, whatever. Mike's known to love blowing any where, any way, any time he can.

I have been watching CNN and FOX for days now. Over at FOX they are doing a lot of Super Bowl stuff and real news including the violent destructive democrat riots in California and New York. Video on the attack on property and people including unaccompanied women and gays. CNN is almost exclusively Trump Bashing. I'm not kidding. They will only break for a minute or two to report world news then back to Trump Bashing. I have watched for DAYS NOW and have yet to see one bit of footage of the riots let alone even a mention of the fact it is taking place.

One of the top stories in all news national and worldwide. TOTALLY IGNORED BY CNN. If you only watched CNN, you would not even be aware the riots took place. Propaganda via exclusion. FAKE NEWS.

Posted by bad_luck on 2/5/2017 10:02:00 AM (view original):

Posted by moy23 on 2/5/2017 5:21:00 AM (view original):
^^Every time the government gets involved in the marketplace there is a market reaction.... Here are the unintended consequences of the fiduciary rule because BL is mad that some insurance agents can offer fixed annuities without being a fiduciary.

So now you admit that Trump is eliminating a fiduciary requirement?

He simple cancelled a stupid rule with a name all you libs would fall for that Oblunder thought would be cool. You should be happy because your advisor won't have to drop you now for a robo-advisor.

Posted by bad_luck on 2/5/2017 12:26:00 PM (view original):

Posted by moy23 on 2/5/2017 5:25:00 AM (view original):
Take a look at what happens when you greatly reduce commissions for professional advice/fund management....

Then ask yourself is this a good thing for people that don't have a lot of money (I.e under $250k) and want to invest for retirement?

Negatives of the new fiduciary rule include:

• Fewer products to choose from. A key way that financial firms likely will reduce product price differences is to eliminate products. Several firms say that is precisely what they plan to do. "In one case, the firm was considering decreasing the number of mutual funds and annuities available to its advisors by as much as 80%," Morningstar Inc. says in a report it has not yet posted online.
• More focus on passive products. If you like actively managed mutual funds, you may find fewer of them offered by your 401(k) plan or broker. Passive investments tend to be lower cost, and financial firms want narrower ranges of fees on comparable investments.
• Being forced into a fee-based arrangement. Fees on assets are not a bad thing per se. Unlike commissions on transactions, they avoid the possibility that your broker churns your account to generate fees. But being switched to fees can be negative if you're someone who does not like unsolicited change in your financial services arrangements or the menu of investments available to you or if the change is forced on you on a take-it-or-leave-it basis.
• Having your account closed. Firms ending or narrowing their reliance on commissions may close small accounts that don't hold enough in assets to be profitable on a fee basis.
• Being shifted to a robo-advisor account. If your brokerage or advisory firm decides it can't make money servicing your small account, it may offer you the option of being shifted to a robo-advisor. The robo-advisor may not be to your liking if it offers investments you don't want or limited contact with a human advisor.
• Having your investment management outsourced. If your financial firm can't handle your portfolio profitably on its own, it may outsource it. In turn, that subadvisor may cut costs by relying on less expensive money managers and research, which may not be as good as their in-house resources.

If all advisors are fiduciaries and the rule is stupid and doesn't change anything, how could it cause all these changes?

What you aren't reading because you are blinded by the cool name and the left spin is that it's more than just these insurance guys as you say need to be fiduciaries because they sell fixed annuities. There are very few unlicensed agents.... Even in the insurance industry (and really who seeks investment/retirement advice from their insurance agent?). It's an attempt to break up managed funds by labeling commissioned salespeople as the bad guy. Obama wanted to whack the big fund managers/companies and he was willing to take out the financial advisors and those people that don't have a lot of money to do so. I was just with my advisor for lunch last week and we were talking about this rule, the implications, and the changes his company were going to implement in April. Go read my car example. It's about getting the buyer to look at the price of the investment so they don't buy the explorer that fits their family of 5 comfortably and getting them into the escape because even though it's not really what the buyer wants/needs it'll do the trick (if you squeeze the family in).

If the Fiduciary Rule was to simply have all insurance agents serve as fiduciaries everyone would be on board, me included. You and I both know that's not how politics work. They package a bunch of **** together, stamp it with a fancy name that Americans can't say no to, and then cram it down our throats. The George Bush 'Bailout' bill for example was almost $600 million in pork (tax breaks for somoan products, money for field mice research, money to build an amusement park).... An economic Bailout? Really? The affordable Care Act.... Lol @ affordable!!! There's a reason pelosi said we'd have to pass the bill to see what's in it. Remember when the don't ask Don't Tell act was repealed and Lady Gaga was offended John McCain wanted to filibuster it? McCain wanted to filibuster because dems tried to slide a path to citizenship in the bill under the guise of repealing don't ask Don't Tell (an issue that even Republicans are amicable to).

Don't pretend the 'Fiduciary Rule' is just as simple as shouldn't all advisors be fuduciaries? It's 1023 pages in length.


The UK and Australia have each implemented similar 'fiduciary' changes in 2010 and the results were a decrease in investment advisors when the small firms collapsed or rolled into the larger firms. The remaining advisors would only take you on as a client of you had lots of money... Any # of studies have been done and can give you the specifics. The 'guidance/advice gap' got much bigger leaving most of the poor and middle class without any advice at all or understanding on how to invest for retirement. Dramatically more people were turned down because they didn't have enough assets to warrant the advisors time and advice.