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Obama's Impact On Investing

Did you ever liken your financial advisor to a smarmy used car salesman? If so, you're not alone.

In a recently published article, Barron's discussed the impact the Obama administration has had on investing-suggesting it's forever changed.

For years investors were warned to be wary of financial advisors because in some cases, advisors were "more like salespeople, paid to steer you toward particular products and prone to charging huge, unnecessary up-front fees." Fiduciaries, while allowed to charge fees for their services, were required to put the interests of their clients first.

In 2015, the White House brought attention to the issue pointing out it cost American's approximately $17 billion each year due to "conflicted investment advice."

Under the Obama administration new regulations were put in place, old ones tightened, and the Department of Labor's rule was established, requiring the best interests of a client to be put first when dealing with retirement accounts. The DOL rule is set to go into effect in April.

It's unclear what, if any, impact the incoming administration will have on the DOL rule but it's unlikely that any administration will be able to completely do away with it. Like a bell that cannot be unrung, investors aren't likely to turn such a blind eye to unnecessary fees anymore.

You can find the full article here.

Read 853 times Last modified on Thursday, 19 January 2017 13:58
Friday, 20 January 2017 06:18

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