Financial Planners & the Death of the “Fiduciary Rule”

This topic really fires me up! Here is a little humorous video to lighten the mood. Warning its going to be 20 minutes so better put the sign on your desk saying you are “away at the toilet” or “away at lunch.”

I’m not a fan of Suze Orman/Dave Ramsey because of their scarcity/fugal money saving ideas but for some people who can’t seem to save two pennies to save their life, I guess it is better than nothing. 

Suze’s WTF face @4:41 when the caller says their financial planner recommended buying an annuity. (that would net a 5% commission!)

@4:00 – Financial advisors make commissions and often put you in investments that are best for them.

Obama tried to do a good thing and pass a law where all financial professionals (like brokers and insurance agents) had to adhere to the “fiduciary” standards—meaning they’d have to work in your best interest if they were advising you on your retirement investments. But this died recently and there is no more fiduciary rule – https://www.wsj.com/articles/fiduciary-rule-dealt-blow-by-circuit-court-ruling-1521164915

Federal Department of Licencing discussion on conflicts of interest or kickbacks to the tune of $17 billion – https://www.dol.gov/newsroom/releases/ebsa/ebsa20160406-0

I don’t recommend any financial planner because I don’t take financial advice who is still working for a paycheck and not out of the rat race (lives in their parent’s basement) but if you must go with one of my friends or a flat-fee one – http://www.fpany.org/

I have heard of these guys/gals do their sales pitch and use fear-based words like “diversity”, “security” and “risk” where the 25-year-old kid is trying to sell random investments to me. And don’t get me started when I tried to tell them about the being your own bank concept. #FacePalm They just tried to sell a higher return (6% whoop-ti-doo) with no liquidity. Totally not what I was going for. Not saying these guys are bad people, they just don’t know and products of the Wall Street institutions.

“It’s like a lawyer who only sets you up with only a will (and not a living trust) because they know you will come to them for probate which will cost on average 10-30k for most people. Talk about BS!”

Note: When I call out financial planners I am also calling out brokers and insurance salespeople. Repeat never listen to a broker!

Share this with your co-workers & friends/family that still believe in the Easter Bunny (happy pre-Easter!) and have a false sense of security in what this financial planner says.

Who took all my money?!? We are living in the best time to be alive with all this information at our fingertips.

Why do people still choose to follow the advice from financial planners working for a commission or so-called low-cost index funds that have about a million middlemen taking the majority of your returns? Who knows, probably why 10% of people in this test are still using the “pull out method” as their form of birth control?

A little off topic but just making sure you are still awake there because financial education is very important.

Check out this podcast with a CFP telling us of the insider secrets in the industry. Link

Speaking of less know tricks… Last year I learned this cool financial hack utilized by the smart money. By being your own bank and using the “Infinite Banking Concept” you can create a dividend-paying whole life insurance. Its called life insurance but its just a tax code loophole to make a tax free yield in an account that is sheltered from lawsuits and creditors. I can assure you this is another thing you financial advisor or life insurance sales guys just does not get… likely because they are still working for a paycheck and it actually decreases their commissions.

Go to SimplePassiveCashflow.com/banking for more info.

And for you high net worth folks still dabbling in paper assets you won’t want to miss this other trick that I will reveal on there too.

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