Most US financial advisors are not required to act in the best interests of their clients. And most clients do not realize this. Did you?
A new rule — the Fiduciary Rule — was going to change that situation, at least when it comes to retirement accounts — IRA, 401(k)s, etc.
The Fiduciary Rule was to finally go into effect this year. It would require the people giving advice on retirement accounts to act in their client’s best interest. Even if the client couldn’t care less, say Johnny Depp, who was evidently blowing $30,000 a month on wine and buying small villages in France.
The Fiduciary Rule, though, now looks like a no-go. Today, the Trump administration said the Fiduciary Rule will be reviewed. Likely, it will not be implemented. Why? The Fiduciary Rule is “a bad rule for consumers,” according to Gary Cohn, former Goldman Sachs president and now head of the White House National Economic Council. “This [the Fiduciary Rule] is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger,” Cohn is quoted as saying in The Washington Post. Say what?
Here at LNWM, we have always acted in our clients’ best interest. Actually, we are required by law to act in our clients’ best interest. That’s because we are a Trust Company and a Registered Investment Advisor regulated by the Securities & Exchange Commission.