You may soon hear or have heard about a new DOL’s fiduciary rule and wonder what it means for your IRAs and 401(k) accounts. It’s in the news today with A Wall Street Journal report published overnight says that President Donald Trump will to sign a memorandum to repeal the fiduciary rule. Last Summer, John Oliver, an English comedian, writer, producer, political commentator, actor, media critic, and television host hosted a segment on the fiduciary rule. Where he got a lot of it right and a major part wrong according to Forbes Magazine.
How does this impact you and what do you need to do: nothing.
At least that’s true for the accounts we service for you. If you have retirement accounts elsewhere like a 401k, 403b or another outside retirement account, it might be a good time to discuss potential impact with us.
The new rule requires some financial services professionals to change their compensation structure to align with client interests. We already adhere to this high standard. Michael is an Accredited Investment Fiduciary (AIF®) and the remainder of the Tannery Team is working towards having the same designation.
You may hear advisers talking about a “new higher standard for retirement accounts.”
These firms may be new to the idea of putting you first. As an AIF®, I am held to a Code of Ethics and take an oath to uphold these principles.
In contrast, the nonfiduciary world is based on rules rather than on principles and ethics. If an adviser/agent has followed the correct procedures, has the paperwork in order and has client signatures on the correct disclaimer forms, no rules have been broken. The behavior can be called unethical, but it is not illegal. Thus additional rules do not necessarily translate into exemplary conduct. There are, of course, many commission-based agents with sound ethics who act with integrity, even if it is not technically required by law.
The differences between these two worlds are seen most clearly in the decision-making process. Fiduciaries can’t simply put your money into good investments. First, they must understand as much as they can about you and your goals. They must demonstrate undivided loyalty to help you meet those goals. Taking the time to understand your goals is simply part of their ethos.
We’ve always put you first and we always will. It’s built on our founding principles.
If you have any questions about your retirement accounts don’t hesitate to contact us. We’ll be happy to talk about your situation as always.
Michael Tannery CPA CDFA® AIF® ● CEO