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Old 02-24-2015, 09:01 AM
Location: Tennessee
23,541 posts, read 17,535,380 times
Reputation: 27576


I can see why and how financial advisors were basically mandatory in the past, as many people also had their financial advisor double as a stockbroker who would take actions in the markets on their behalf.

Pretty much anyone these days can open an account with an online broker and do the mechanics of it themselves. What you pay the advisor for is information, and that is also widely available as well.

I think this addressing a diminishing profession.
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Old 02-24-2015, 10:30 AM
Location: Chicago area
14,364 posts, read 7,913,715 times
Reputation: 53461
Originally Posted by HappyTexan View Post
The best person to take care of YOUR MONEY is YOU.
And if you don't know about investments then you need to take it upon yourself to learn about them before you retire and have a boatload of money that you now need to manage.

All during my working years I came upon countless number of folks in my company that had no clue about investments and stuck all their 401K money into whatever the newsletter told them.

I don't have a 401K but I can guarantee that my retirement money is greater than most peoples 401K. It also pays me an extra $2550 a month that I've never used in nearly 20 years. Once I invest that money that income could double. Our retirement is going to be sweet There are too many people out there unwilling to do the leg work and research to guarantee their retirement. Those that have the take me by the hand mentality deserve what they get. That would never work in my universe.
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Old 02-24-2015, 10:55 AM
26,589 posts, read 52,257,058 times
Reputation: 20397
Originally Posted by froglipz View Post
As well they should. Watch the rats flee the sinking ship!
They already are... the big players that have been vying for the Hospital Retirement Accounts are no longer interested...

Follow the money...

Last edited by Ultrarunner; 02-25-2015 at 09:42 PM..
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Old 02-24-2015, 12:19 PM
2,014 posts, read 1,253,445 times
Reputation: 1921
My concern is that pretty quick 'fiduciary responsibility' would be limited to some kind of government paper or just folding your assets into Social Security.
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Old 02-24-2015, 12:29 PM
10,812 posts, read 8,056,502 times
Reputation: 17010
Originally Posted by golfingduo View Post
I am pretty sure I know that the prospectus tells the story. If a person gets a 401k or any other investment, I know it comes with it.
The prospectus doesn't provide information about the fees/commission paid to the broker or financial advisor recommending a fund/investment.
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Old 02-24-2015, 01:58 PM
685 posts, read 564,075 times
Reputation: 1004
Originally Posted by volosong View Post
From the Miami Herald

Obama to announce retirement account change | The Miami Herald The Miami Herald

Mandating that retirement financial advisers hold fiduciary responsibility for their clients. I can support that.
I think this is absolutely fabulous. I just don't know how he's going to do that. When 9/11 hit, our financial advisers had moved from NY to FL. I called them IMMEDIATELY to move funds out of the market. They were on vacation and ignored calls. I wanted to sue them for not being available as the world around us all came a tumblin' down. They're allowed to be on vacation and there are obligations they should have since they were dealing with much of our money. But we'll see. I'm not holding my breath.
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Old 02-24-2015, 02:22 PM
Location: WA
5,392 posts, read 21,385,099 times
Reputation: 5884

- no one know what the future holds,

- something for nothing does not exist,

- competence in any field can be charted with a normal curve (most are mediocre),

- government regulations require interpretation,

- most have needs that change over time...

I would not count on this action to make it much easier to get sound financial direction unless you educate yourself to a certain extent and stay involved in your own investment decisions.
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Old 02-24-2015, 03:23 PM
29,764 posts, read 34,851,819 times
Reputation: 11675
The proposals have pros and cons and as always the possibility of unintended consequences. Advisors need to make money and do so at the level they feel appropriate. If you don't have enough for their legitimate fee schedule they won't help you.
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Old 02-24-2015, 03:26 PM
Location: Staten Island
1,653 posts, read 1,792,949 times
Reputation: 2353
I think something like this is needed. My Father was steered towards a life time annuity at age 70 that he should not have taken out. His accountant scared him into taking it and than he died less than 2 years later, left 6 figures on the table and we aren't even sure if actually knew what he was doing when he took the annuity out. What was very upsetting to me was when I requested the break down of the annuity interest rate, fee's and commissions and nearly $26,000 was in commission and broker's fees and the rate was lower than the national average. That annuity was not a viable product, especially for a man my Father's age and for that amount of money. One money manager I spoke to told me that the word annuity is a bad word.
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Old 02-24-2015, 06:02 PM
Location: Maryland
282 posts, read 305,695 times
Reputation: 338
Originally Posted by volosong View Post
I totally believe in the advice of Clark Howard and he takes a dim view of financial advisers who sell stuff. He recommends getting advice from a 'fee-only financial adviser'.
I agree.
And these types of advisers already have a fiduciary duty to the person over the advisers interest, no new regulation needed. One of the problems with the wide brush of over regulation is that it will apply to brokers. They make certain products available at low cost, if you know what you want (from the fee-only adviser). So if you make regulation on brokers, the cost of those services/products go up since they will look for income elsewhere rather then the way they do it now from selling. Avoid buying products from the person that gave you "advice" to buy it.
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