The head of a high-profile broker-dealer became uncharacteristically upset soon after the passage of Dodd-Frank a few years back because of the law’s broad brush, which he said unfairly painted his reps .
He had a point—the specter of Rich Uncle Pennybags and his fat cat friends smoking cigars and laughing maniacally at the high rate of return gleaned from the exploitation of others is too easy to conjure, especially in an election year. “Taking on Wall Street” too often ensnares retirement advisors on Main Street, those active in their communities who possess honesty and integrity and are guilty of nothing more than shepherding their friends and neighbors through to an affordable quality of life in retirement.
It’s why populist political headlines about who attacked whom over close ties to big banks cause such commotion; it’s clear they have no idea what they’re talking about and view the issue through a subjective (and unfocused) lens. It’s also why arguments over the DOL’s fiduciary rule have become such a cluster.
More regulations mean more costs—period. They might be offset by the benefits gained, but the notion of an honest CBA on financial issues is about as antiquated as an abacus. Put simply, legislators and regulators engage in the same financial malfeasance of which they accuse others. The result is that they harm the very people they claim to help.
A piece on Vox.com (hat tip to Alison Hawkins of the Financial Services Roundtable) in the wake of the billion dollar Powerball bonanza is about what you’d expect from a millennial-powered website that broke with The Washington Post because it found its lefty credentials lacking. One section of the story, however, found that a significant portion of the populace feels Powerball is the only way to accumulate a significant amount of wealth (read that again, we’ll wait). A third of young people believe they’ll never have enough to retire, and the lottery is their only shot. As one mathematician noted, they’re more likely to get hit by lighting on a sunny summer day without a cloud in the sky.
The tragedy is that the demographic most down on their retirement prospects is the one with the most time, and therefore best chance, to succeed. They’re also the demographic most likely to swallow the politicos’ cynical message, and yet somehow it’s Wall Street that needs fixing.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
The 401k industry is filled with jokers who have no business in the field. How is that a complete moron with nothing but a life license is able to sell 401k plans? Why do they still sell fee-laden group annuity plans? Why does the industry wine & dine registered reps to sell their plans? It’s a joke and blaming people who want to implement common-sense reform to better serve the end-users (which is a lot of people!) is shameful on your end. I’ll be sure to make sure your publication goes where it belongs — in the trash bin.
The government is filled with jokers who have no business telling anyone how to run their business. How is it that a complete moron with nothing but an elective office is able to decide who should be giving financial advice and how they should be paid? Why do these jokers insist that government/force is always the answer? Why do these these jokers always forcibly extract money from the people they claim to be helping in order to enforce their ideas of what is right and wrong upon others? It’s a joke and blaming people who want to eliminate government interference with respect to human action that involves the voluntary exchange of goods & services in order to better serve the end-users (which is a lot of people!) is shameful on your end. I’ll be sure to make sure your reply goes where it belongs — in the trash bin.