New fiduciary rules for advisors on IRAs

[FIREd_2015]

"...Americans will get new protections for the trillions of dollars that moved out of their 401(k)s and into individual retirement accounts, under Labor Department regulations released Tuesday...The new regulation would extend Erisa’s fiduciary requirements to all advisers...who provide advice on IRAs, including rollovers. The change starts going into effect on Sept. 23, though it might face legal challenges. The industry will then have another year to fully comply...In 2022, investors moved $770 billion into IRAs from 401(k)-type retirement accounts, up from $404 billion in 2013...There might be another wave of lawsuits to block the effort...

https://www.wsj.com/personal-finance/retirement/retirement-advice-401k-ira-fiduciary-rule-e87bd95b?st=peng42972pdk6sr&reflink=desktopwebshare_permalink

 

[OldShooter]

Good news for the many people who are routinely cheated by insurance salespeople and Series 7/Registered Reps. But it will be heavily gamed in the interest of protecting salespeople's income.

I think the crowd here is largely knowledgeable and resistant to the hucksters that DOL is trying to shut down.

 

[Rianne]

Yep, I remember megacorp riddled with hucksters, advising to buy many products, annuities, funds that did not work out well for us. We were young and naive. That was back in the early 90s. We started listening to Bob Brinker on the radio. We changed our direction to S & P and total stock market mutual funds with low expense fees.

 

[Al18]

It was a non-event for me - all mutual funds transferred in kind between 401K and IRA except one.

 

[OldShooter]

It was a non-event for me - all mutual funds transferred in kind between 401K and IRA except one.

I think the DOL issue was that the hucksters have been talking people into converting 401Ks so that they had access to the cash and could sell dodgy products.

 

[aja8888]

Yessir, I'm your new fiduciary and I'm here to help you!

 

[Koolau]

I'm guessing it will be pretty simple to defeat any such rule. The lobby for the industry is strong.

Full disclosure: I hope I am wrong.

 

[Route246]

Yep, I remember megacorp riddled with hucksters, advising to buy many products, annuities, funds that did not work out well for us. We were young and naive. That was back in the early 90s. We started listening to Bob Brinker on the radio. We changed our direction to S & P and total stock market mutual funds with low expense fees.

I started listening to Bob Brinker on KGO-AM in SF back in the 80s when he started the Marketimer syndicated show. He pushed low expense ratios, diversification, no-load mutual funds (favoring Vanguard). He drilled this mantra week after week after week. My wife and I have amassed a nice critical mass (Bob's favorite watch words) or what is referred to investable assets here and I attribute 98% of the strategic credit to Bob Brinker. He steered me away from high fees, annuities, insurance companies, commission sales and other things which he referred to as shark attacks.

That said, I'm taking the path to further simplification. Target would be to die with a single Vanguard account presence with a few SPY/VTI-like mutual funds and ladders of zero coupon treasury instruments for fixed income. Haven't gotten there yet as we hold significant positions in 4 stocks with substantial capital gains attached.

Will be facing RMD in six years, hopefully the current planning I'm doing now will make that as tax efficient as possible.

 

[jazz4cash]

Another student of Bob Brinker here.

As for the new rules it seems to be much ado about nothing to me. I just think the people that need this protection will remain vulnerable to the bottom feeders