House Evaluates 401(k) and IRA Financial Advice Rules

allowing investment advice

As an investment advisor I resent the implications and statments that impugn my integrity in advising clients. Yes, I get paid to do my work, helping clients align their investment accounts to their time horizons, tax control needs and risk tolerance, but that doesn't mean I 'slant' the recommendations to favor investments on which I get paid more! I make the best advice for each client that I can, and my rewards come from their loyalty, contiunuing business and referrals. The current state of affairs prohibits me from advising my clients on their 401(k) account because it can be contrued that I ama cting as a fiduciary - but thsat leaves cleints without asistance. So they are free to make all the mistakes that un-counseled people often do : owning too much employer stock, fail to diversify, sell low and buy high, and many more!. If the rules would allow me to advise clients on their 401(k) plans I suspect they would a] save more, b] diversify better, c] avoid using these assets for alternative spending, d] enjoy retirements that are more fiscally sound. And if all that costs them some fees along the way then I beleive they are getting a fair value for the expense.

mike morger of OH @ Mar 30, 2009 14:43:23 PM

401K Financial Advice Concerns

Once again, our "friendly" Federal politicians want to extend their protectionist invasion of our civil liberties into our ability to make our own decisions about our investments. Since when did this country grow up on "risk-free" decisions.

Actually, this so-called concern for the employee investors is just a smoke screen designed to enable these bureaucrats to get their hands on our 401K savings accounts to further their rape of the country's finances. They want to try to position themselves as the "unbiased" advisors who will provide healthy and objective investment advice. Talk about a conflict of interest!!!!!

The next time a Federal politician trys to tell you he or she is here to help, ask them about their own cushy retirement and health care plans. They have no concerns since they will be taken care of for the rest of their lives by us.....the taxpayers.

So keep your greedy hands off of our 401K plans, Washington. I'll make my own decisions about my investment plans and accept the risk that goes along with it.

I. Pardon of NJ @ Mar 26, 2009 17:40:20 PM

401k

My experience with a 401k is not a good one. Many years ago, the company that I worked for had a pension plan and life was normal. Put away a little money each paycheck and the money would be there when we chose to retire. THEN the snake oil salesman came to our company and convinced the company owners that it would be better if the employees could save a dollar and the company would match the dollar. Wow, what a neat deal, save a dollar and you now have two dollars. Sounded great and no more pension plan. Instead, we now had a 401k plan that we could manage ourselves!!!!! I will never invest in a 401k and roll the dice on the 12 allowed investments again. They all tumbles and we were fools for getting into this mess. Our stock price went from $30 to $3 dollars a share. All I can say is beware of the snake oil salesman who comes to sell the 401k. Thank goodness I still have my social security check each month and that President Bush was not able to get his hands on that program.

2021 of TX @ Mar 25, 2009 21:39:28 PM