With the Department of Labor’s proposed changes, a lot of firms have changed the way that they do business. This is, in theory, is a good thing, as financial advisors now must act in a Fiduciary capacity.
In other words, they should put the client’s interests before their own. Ironically, there has been an unintended consequence for some: the lack of ongoing advice and the ability to analyze a client’s entire financial situation.
Some firms can no longer roll over funds into qualified accounts. For the majority of my clients, who work or have worked for employers that don’t have pensions, Qualified funds are the majority of their portfolios! With employers passing the burden of providing a retirement income stream onto the employees, these accounts potentially represent a large portion of a future retirement income stream.
I believe, these institutions don’t want to provide advice or management of funds that will make up the majority of future retirement income streams for these clients. When most Americans potentially running out of money per most studies due to lack of saving, longevity, lack of pensions, and poor planning, this is an area that can’t be ignored.
My job as an advisor is to tell it how it is, not what my clients want to hear. I have been in the business long enough to see success and failure. Failure rates have the potential to be higher if an advisor does not help with qualified funds. There is no magic retirement income plan. There is no static rate of withdrawal that will guarantee success. Retirement income plans need to evolve and change over time based on performance of the portfolio, inflation, taxes, and changes in circumstance. This requires an advisor to be looking at a client’s entire picture, not merely providing a client 4 different options where they get paid the same regardless of what the client chooses.
Otherwise, just let Skynet take over to plan your retirement.
If you are beginning the process of looking for an advisor who works on the behalf of ALL of their clients, look no further then myself and my team at Wealthnest Planners. Contact me today for a free financial physical 480-699-5275 or visit us www.wealthnest.com
Michael McGinley, CFP ®
Comprehensive Wealth Manager | Tax Advisor
Chandler, AZ 85226
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. No strategy assures success or protects against loss