President Trump Takes Action For Benefit Of Self-Directed IRA & Other Retirement Account Investors [EPISODE #251]
The Big Idea
The Fiduciary Rule claims to benefit the "best interests" of retirement account investors, but will only serve to keep middle-income Americans away from alternative assets and from high-quality financial advice. Trump has delayed implementation of this new rule and may end it entirely... Bravo!
Points To Ponder
- In April 2016, the Department of Labor proposed new rules to expand the definition of "fiduciary" to anyone connected with providing guidance to retirement account investors
- The "suitability" standard had been in place - effectively - for many years, which required that advisors only make investment recommendations that are suitable to investors
- "Fiduciary" status raises the bar for advice from "suitability" to "best interests"... with stated motivation of eliminating "conflicts of interest"
- No evidence that "suitability" was an insufficient standard
- New "best interests" stndard will absolutely limit access to alternative investments and financial advice to all but the upper tier of retirement account holders
- Fundamental Effect of Fiduciary rule would be to limit the availability of financial advice
- Trump has delayed implementation of the Fiduciary Rule for 180 days so he can determine what to do with it. Seems likely he'll eliminate it entirely as it limits investor choice.
Bryan Ellis is host of Self Directed Investor Talk, America's #1 radio show and podcast for affluent self-directed investors. He's also an expert in self-directed IRA's, solo 401k's and turnkey rental property investing... at least, that's what his wife tells him 🙂 He's a contributor to well-respected publications like TheStreet.com, Entrepreneur and ThinkRealty. Bryan lives in metro Atlanta, Georgia with Carole Ellis - his wife, business partner and best friend - and his 4 children ranging in age from 2 to 19.