AuH20
03-01-2015, 11:25 AM
http://nypost.com/2015/02/28/white-house-looking-to-creep-into-401ks/
https://********************************/2015/02/464268286-e1425183212825.jpg?w=720&h=480&crop=1
However, what the president surely knows is that a vast majority of retirement plans — IRAs and 401(k)s — are in simple fee-based products like mutual funds. The commission-based accounts are for those who prefer to direct their brokers in certain purchases inside some of their retirement products.
The key to the White House’s interference is in its nuanced language.
Currently, a broker may make a recommendation that must be “suitable” for retirement account assets such as 401(k)s and IRAs.
However, the president wants to take it a step further and mandate that it be in an investor’s “fiduciary best interest.”
The administration surely knows that commission rates and fees on Wall Street have never been better for the consumer, and to pretend to be able to offer even cheaper rates seems disingenuous.
It also opens a huge can of worms.
What if an investor who has been successful with Apple wants to buy 100 more shares of the tech giant for his or her self-directed IRA?
Does the administration really want a broker to interfere because in the broker’s opinion it isn’t in the “best interest” of the investor?
It’s all about control. It’s your money, America. The system functions quite well. Adding more pages of red tape will not improve performance, but it just may get your broker to drop your account, just as many credit lines were closed after Dodd-Frank passed.
Many on Wall Street and non-political economists feel one of the things holding back our economy is the ever-increasing creep of socialism and added regulation into our finances.
Just look at the mandated, innocuous-sounding Affordable Care Act, a k a ObamaCare. At its passage in 2010, we were promised a savings of $2,500 per family.
https://********************************/2015/02/464268286-e1425183212825.jpg?w=720&h=480&crop=1
However, what the president surely knows is that a vast majority of retirement plans — IRAs and 401(k)s — are in simple fee-based products like mutual funds. The commission-based accounts are for those who prefer to direct their brokers in certain purchases inside some of their retirement products.
The key to the White House’s interference is in its nuanced language.
Currently, a broker may make a recommendation that must be “suitable” for retirement account assets such as 401(k)s and IRAs.
However, the president wants to take it a step further and mandate that it be in an investor’s “fiduciary best interest.”
The administration surely knows that commission rates and fees on Wall Street have never been better for the consumer, and to pretend to be able to offer even cheaper rates seems disingenuous.
It also opens a huge can of worms.
What if an investor who has been successful with Apple wants to buy 100 more shares of the tech giant for his or her self-directed IRA?
Does the administration really want a broker to interfere because in the broker’s opinion it isn’t in the “best interest” of the investor?
It’s all about control. It’s your money, America. The system functions quite well. Adding more pages of red tape will not improve performance, but it just may get your broker to drop your account, just as many credit lines were closed after Dodd-Frank passed.
Many on Wall Street and non-political economists feel one of the things holding back our economy is the ever-increasing creep of socialism and added regulation into our finances.
Just look at the mandated, innocuous-sounding Affordable Care Act, a k a ObamaCare. At its passage in 2010, we were promised a savings of $2,500 per family.