Maybe it was spell check gone wrong, maybe he was just too quick to hit send or maybe it was just another idea on how to stoke the flames of the buzz machine. Whatever the reason, yet another POTUS Tweet has captured the attention of the nonstop media and news cycle. It almost certainly won’t be the last.
We may never know what he intended, but there are actually many things coming out of Washington that do merit some paying attention to.
One such item worthy of a few brain cells is the Fiduciary Rule, which is now scheduled to go into effect on June 9th, 2017. It’s quite possible that there may be twists and turns along the way, but holding financial advisors to the fiduciary standard is likely a long term trend that is here to stay.
Most simply, someone acting to the fiduciary standard must give advice and take action solely in your best interest. Practically speaking that means that I cannot recommend products and services to you so that I can draw a high commission, win a sales contest, meet a corporate profit directive or enjoy a lavish perk. Fiduciary advice has to be in your best interest.
It is surprising to many people to learn that the person giving them advice or selling them a product does not necessarily need to meet the fiduciary standard. Which to many, seems crazy. Why shouldn’t the person who you have entrusted with your life savings, do everything in your best interest? They should right?
And many in our Federal Government regulatory agencies also believe that financial advisors should act and be held to the Fiduciary standard. So on June 9th, a set of rules and guidelines will go into place for advisors helping individuals with retirement accounts, such as 401(k)s , ROTHs and IRAs. Those areas will have some amount of fiduciary protection.
Over time, many believe that all financial advice will eventually need to be given at, and held to, the fiduciary standard. In the meantime, you can ask your advisor if some or all of their business operates to the fiduciary standard, and if not, why not. You may be satisfied with the answer, you may not.
As you may have guessed, J. Bradford Investment Management embraces and operates to the fiduciary standard. We are a fee only practice and we do not sell any products on commission. Our recommendations are an unbiased view of our professional judgment.
If you would like help unpacking the meaning of “Covfefe”, try Buzzfeed. If you would like help unpacking the commissions, hidden fees and other potential pitfalls in your portfolio, please schedule time with us, we would be happy to conduct a free portfolio review.
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