Tag Archives: Fiduciary Rule

Finance Prompt #2

Fiduciary Rule: “Fiduciaries is the legal term for a broad group of professionals who are required to put customers’ interests first. They cannot accept compensation or payments that would create a conflict of interest.” (Lee, Kathryn) That quote came directly from the article on U.S. Pirg, written by Ms. Lee about the interview (I am assuming) with John Oliver about retirement and what comes with retirement.

Lets just start with, I know nothing about retirement funds, how to get one, who to talk to, where to start, how to start, what else to do to increase your retirement, nothing. What I do know is, most jobs offer a 401k, it is important to start at a young age, and investing in your future is probably the best thing you can do in your youth.

Okay, so the fiduciary rule now defined by me: Those that are in the financial advisor positions are not out for their best interest, but are out for the best interest of their client. Meaning, they must do what they can to ensure that their client is receiving the best advice and pointed in the best decision making direction specific to their customer (the person receiving the financial help). This is what it means to me, and I gathered that meaning from the article on U.S Pirg, by Kathryn Lee. I felt, compared to the other article about the 4 arguments by Patrick Tucker, Lee did a much better job at defining and applying that definition of the fiduciary rule to the point that an ignorant consumer, like me, was able to come up with their own definition. She did this my specifically defining the word, then going on to explain again what Mr. Oliver was speaking on in his interview. She elaborated on what it means to have high fees and low fees when choosing a retirement plan, what it meant for those who did not have to go by the fiduciary rule, and an actively managed fund. Each of these topics she spoke on were quick, but to the point and it had enough basic information to clearly understand what she was talking about. On the other hand, the article written by Tucker, I had no idea what he was even saying. He was speaking about things I knew nothing about, and didn’t offer very much background knowledge for me to “catch up” to his article.  This made is difficult for me to quite understand the fiduciary rule and what these myths meant that he was talking about. This doesn’t mean he had written a bad article, because I am sure to those that knew what he was talking about appreciated the shortness and to the point the article was. Just for me, between the two articles, Ms. Lee did an excellent job on explaining and providing clear understanding for the fiduciary rule, what it meant, and where it applied.

Finance: Prompt 2

Personally, both articles were easier to read than I thought they were going to be but for some reason 4 Reasons Against the Fiduciary Rule Debunked was a little easier for me to understand and grasp the concept of what we are supposed to be learning about this week. The Fiduciary Rule is basically all financial advisors helping there clients save money need to have the clients best interest in mind instead of there own.

What I don’t really understand is how someone can be so cruel in there job. No matter what your job is whether it is a teacher, CNA (Certified Nurses Assistant), social worker or even a manager at Walmart, you ALWAYS have someone else best interest in mind because it is part of your job! The second you put yourself first is when you lose your job. How can someone keep there job when they aren’t even doing the main portion of it which is help there client save money.

If I had to chose one of the articles that was easier for the consumer to understand it would be 4 Reasons Against the Fiduciary Rules Debunked because the lay out was easier to read, the main points they wanted to explain were very much in detail with words that were easier to understand and it explained everything as you read along. It was a tad bit longer but only because it had more explanations. I liked both articles and I really like how Last Week Tonight with John Oliver: The Retirement Industry is a Minefield — But Here’s the Answer had five main points at the end that they thought were necessary to include sort of as a reminder.