Written by Rod Holt
Posted by Mike Sauers
July 11, 2024
I would just like to share a recent article from Bloomberg News and add a few comments from this retired Chef and small business owner; a small restaurant owner. ( translate that to middle class economic level).
House Republicans advanced a measure to overturn the US Labor Department’s rule governing investment plan advisers that has been opposed by many on Wall Street. On Wednesday, the Committee on Education and Workforce voted 23-18 in favor of a resolution brought under the Congressional Review Act. The rule, which would extend strict fiduciary standards to more retirement plan advisers has drawn the ire of both congressional Republicans and business groups, particularly in the life insurance industry.
The vote was mostly along party lines with Rep. Lori Chavez-DeRemer (Ore.) as the sole Republican who voted against the resolution.
Committee Chairwomen Virginia Foxx (R-N.C.) called the rule a “reckless overreach” by the Department of Labor. “It will eliminate options for working class Americans, reduce their ability to retire and limit their access to financial advise,” Fozz said.
As I said I was a business owner, a successful business owner. My wife and I were partners. She ran the front of the house. I was the Chef and ran the kitchen. We both graduated from college with degrees in education and psychology which helped us in our field. Excuse me, that’s my old man humor.
It took me about 15 times reading the above passage to fully understand, who, Democrats or Republicans, were for or against the rule. Let me give you my take in English.
Republicans, Wall Street, Insurance companies and other big corporations would like to limit or stop the extension of fiduciary requirements, rules, accountability or laws they would be required to follow managing yours and my retirement accounts.
What does that mean, “fiduciary” requirements, rules or laws? Simply, it means they have a legal responsibility to look out for their clients best interests. They cannot sell you, or put you in retirement plans where they benefit regardless if it’s a good or safe choice. Said another way, they can find the retirement annuity or account that pays them the biggest commission regardless if it is good for a client or their family.
That’s why every financial planner or advisor you chose should have a legal “fiduciary” responsibility to you. Read what Committee Chairwoman Virginia Foxx, (R-NC) said when she called the rule “reckless overreach”. “It will eliminate options for working class Americans, reduce their ability to retire, and limit their access to financial advise”.
Quite the opposite is true, it will eliminate shisters from selling bad retirement choices to Americans. It will increase our chances for a successful retirement and it will not limit our access to good fiduciary advise from honest licensed money managers and financial planners.
I asked myself, why would Congresswoman Foxx say this to her constituents and fellow Americans? Just Google her biggest re-election fundraising donors and then dig into who funds her PAC’s. This is no easy job!