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Congress is ‘poised for its last stand against’ against a DOL rule that would raise investment-advice standards for retirement accounts (InvestmentNews)
“Congress is poised to make a last stand against a Labour Department rule” that would “require financial advisers to act in the best interests of their clients in 401(k) and individual retirement accounts,” reports Mark Schoeff Jr. The final rule is expected to be released publicly in March or April.
Last week, Speaker of the House Paul Ryan slammed the rule in his official blog, arguing that it “creates more paperwork and costly record keeping requirements…, restricting access to quality investment advice for upwards of 7 million Americans with IRAs” and “results in higher costs for people seeking financial advice, disproportionately hurting families with smaller bank accounts.”
Meanwhile, CEO at Ritholtz Wealth Management Josh Brown doesn’t see exactly see eye-to-eye with Ryan here.
“The logic here is astounding,” he wrote in a column for Fortune. “The argument is literally that some people need to be taken advantage of in order for them to be worthwhile clients. I believe Ryan is on the wrong side of this issue and on the wrong side of history.”
“But more than that, his argument — that somehow conflicted advice is better than none at all — is wrong for at least two reasons,” he continued. “For starters, it’s cynical to the point of being downright un-American. We don’t allow any other industry in this country to operate this way, openly or otherwise. The much bigger problem, though, is this: It’s a lie. A horrendous lie
On Monday, Obama met with the top regulators in the financial sector, including Fed chair Janet Yellen and SEC commissioner Mary Jo White, to check in on how regulators were implementing the Dodd-Frank financial reform law. At the meeting, he noted that his efforts to overhaul the financial system have been criticised by both sides, but argued that they “have worked.”
“I want to dispel the notion that exists both on the left and on the right that somehow, after the crisis, nothing happened,” he said. “We did not just rebuild this, we rebuilt it better, and we’ve rebuilt it stronger.”
The Bureau of Labour Statistics estimates that the population aged 65 and older will double by 2050 to 83.7 million compared to 43.1 million in 2012. Consequently, they note, understanding how people spend in later life will be crucial to understanding financial security in retirement.
Overall, expenditures decline as people age, with spending on clothing and transportation decreasing. However, healthcare spending increases.
A $150 million team just ditched Wells Fargo (Financial Planning)
A Wells Fargo team that oversaw $150 million in client assets joined US Capital Advisors, reports Andrew Welsch.
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