Tag Archives: finance matters

Finance Prompt Two

In reading “The Public Interest Research Group’s Tutorial on John Oliver’s Retirement Income Episode and the Fiduciary Rule” I understood it more compared to that of the “Investment Advising Company’s Debunking of the Arguments Against the Fiduciary Rule.” According to The Public Interest Research Group’s Tutorial on John Oliver’s Retirement Income Episode and the Fiduciary Rule, “fiduciaries is the legal term for a broad group of professionals who are required to put customer’s interest’s first” (The Public Interest Research Group’s Tutorial on John Oliver’s Retirement Income Episode and the Fiduciary Rule, 2016, para. 1). As a consumer I believe that it does help explain what the positive and the negative aspects of the fiduciary rule. In reading the article I found that if brokers were to act solely in the interests of the client without compensation of any sort they will not work as hard to assist the consumer in reaching his or her financial goals. In this case according to the article The Public Interest Research Group’s Tutorial on John Oliver’s Retirement Income Episode and the Fiduciary Rule, “advisors aren’t currently bound to act in your best interest, they can steer you to make investments that benefit them but might not be the best choice for your retirement savings” (The Public Interest Research Group’s Tutorial on John Oliver’s Retirement Income Episode and the Fiduciary Rule, 2016, para. 2).  Do to the conflicted interests that advisors have with their consumers they make little profit without regard for their clients interest. The Department of Labor attempted to come up with a rule requiring that all advisors handling consumers accounts be bound by the fiduciary rule to act in the consumers best interest. In this case this article provided useful information in regards to the fiduciary rule and how it could potentially have beneficial benefits to consumers but the catch is that the advisors will no longer be able to collect compensation from these accounts which will in turn change the amount of effort they apply to these accounts.

References

4 Arguments Against the Fiduciary Rule Debunked. (n.d.). Retrieved July 16, 2017, from http://www.truemeasure.com/blog/2016/4/14/5-argument-against-the-fiduciary-rule-debunked

Blog. (2016, June 14). Retrieved July 16, 2017, from http://www.uspirg.org/blogs/blog/usp/last-week-tonight-john-oliver-retirement-industry-minefield-here%E2%80%99s-answer