Professor Ron Rhoades, my esteemed colleague (he’s esteemed, I’m certainly not) at Garrett Investment Advisors, has written prolifically about the need for a true (Bona Fide) Fiduciary Standard for investment advisers. His efforts and those of many others are starting to move the needle. Both he and Sheryl Garrett have recently testified in Washington D.C. in support of the Department of Labor’s proposed rule that ALL financial advisors providing retirement advice act as a Fiduciary.
Currently, only Registered Investment Advisory firms and their advisors act in this capacity. Brokers and registered representatives are merely required to follow a suitability rule. As long as the investment, insurance product or portfolio is suitable, it can be recommended, regardless of cost or whether it is best for the client. As you can imagine the Wall Street firms, whose huge profits depend on this double standard, are throwing large sums at lobbyists and slick advertising to thwart this sensible rule change.
Washington needs to hear from all of us if we hope to counter Wall Street’s big money and win one for middle income Americans. But, I don’t have Ron’s energy or gift for writing and I suspect few of us do. So I was excited when he recently pointed me and my fellow Garret Planning Network members to a great website that makes it really easy for all of us to write to our elected officials about the proposed DOL rule change. I hope you’ll join us in telling Washington how important this is for all of us. As Ron simply stated:
“I urge you to use this simple online tool to contact both of your U.S. Senators, and your U.S. Representative. TODAY. Because next week, or next month, may be too late.”
For more information, here’s Ron’s latest article: Stop Wall Street’s Sacking of America: Take This Simple Act, Today!