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“Look at this… Look at what they make you give!”
Those were the last words of “The Professor” from the 2002 film The Bourne Identity.
In the movie, Clive Owen’s character is sent to assassinate Jason Bourne, the hero. Both Bourne and the Professor have actually been brainwashed by a rogue government agency.
Thankfully, Bourne foils the assassination plot and as the Professor dies, he reflects on the incredible toll this agency took on his life and the life of those serving with him.
In the end, it’s a tragic and pointless death…
Look What Wall Street Makes You Give
The Bourne Identity clip got me thinking about today’s retirees, and the tragic price that so many are paying for “financial advice.”
According to the Labor Department, investors lose $17 billion each year to conflicts of interest on Wall Street.1 This is money that could be sitting in the accounts of hard-working Americans who planned ahead and saved money for retirement.
Instead, billions of dollars are being siphoned out of these personal accounts and paid to investment advisors, fund managers, and Wall Street executives.
Look at what they make you give!
The real tragedy, is that even though these wasteful fees have been well documented, precious little is being done about it. And retirees are being kept in the dark, or fed dishonest propaganda from the Wall Street establishment.
More than a year ago, the Labor Department amended the fiduciary rule in an effort to protect investors from Wall Street. But in typical Washington fashion, changes weren’t set to take place until April of this year.
Now, a new executive order has delayed implementation even further, allowing financial advisors to wait until June 9 to start implementing the rule.2
“Sorry retirees… We’ve got a few more months to fleece you” I can just hear Wall Street taunting.
So What is the Fiduciary Rule Anyway?
The fiduciary rule basically states that investment advisors must act in the best interest of their customers.
You would think that investment advisors would naturally act in the best interest of a customer as a matter of policy. But that’s just not the case…
Instead, many advisors charge hefty fees for offering cookie cutter “plans.” And then once they invest retiree’s money into funds, the advisors receive kickbacks and other incentives from the funds that they pick. Not to mention the ongoing management fees charged in plain daylight.
Unfortunately, most retirees have essentially no idea what it costs to receive financial advice. And according to a recent survey, only 32% of investors have even heard about the fiduciary rule.3
Wall Street is working hard to fight off this new rule. Their claim is that it is “too expensive” to implement. In other words, it costs too much for them to act in their customer’s best interest.
Are you kidding me??
Once upon a time, it was considered good business to act in your customer’s best interest. But today, it costs too much. Put more bluntly, investment advisors will be giving up too much in fees and kickbacks to justify implementing this new rule.
I even heard of two blue-chip banks that decided to require customers to sign “best interest contract exemptions” to try to sidestep this new rule.
This blatant stealing from hardworking savers and retirees makes me sick. I hope it makes you angry as well… Angry enough to pull your account away from your Wall Street investment advisor so that you don’t have to pay your share of $17 billion in hidden fees.
If you’re like many investors, you may feel you don’t know how to manage your own investments.
But that’s why we’ve been building a team here at Agora Financial, dedicated to helping you build and protect your wealth.
Lately, we’ve been working on a behind-the-scenes project that could make a big difference in helping you manage your own wealth. I can’t share too much right now as we’re still putting all the pieces together.
But suffice it to say, we’re extremely excited.
And unlike the Wall Street firms who are siphoning off billions from retirees accounts, we actually do have our customers’ best interests at heart.
More to come soon!
Here’s to growing and protecting your wealth!
Editor, The Daily Edge
1 The fiduciary rule is coming – Here’s how investors can prepare, Alessandra Malito, MarketWatch
2 DOL Fiduciary Rule Explained as of April 18, 2017, Investopedia
3 Still wondering what the fiduciary rule is? You’re not alone, Alessandra Malito, MarketWatch
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