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.

Resources

• Episode #251 of Self Directed Investor Talk available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

Next Episode

The next episode of Self Directed Investor Talk addresses one particular market for turnkey rental properties that we at SDI are proponents of... along with a case study of a particular investment opportunity to give you a good "taste" for the potential!

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