Department of Labor Regulating Your 401K April 16th, 2017

[Lucille]

https://www.armstrongeconomics.com/...f-labor-regulating-your-401k-april-16th-2017/

The financial services industry is undergoing its greatest upheaval perhaps in more than 35 years because the government came up with a brilliant new idea to pretend there is a crisis that they need to step in to save you. I have warned that there has been talk about taking over 401K funds which are about equal to the total national debt. There have been proposals that they just take control of that and stuff it by mandatory investment in government bonds. Some countries already require pension funds to be “conservative” and 85% of all money must be in government debt. The one thing we know, whenever government claims it is doing something to protect you, you can be sure the end result will only put more money in their pocket.

As of 2017, what is yours, will begin the process to become theirs. The new ruling from the Department of Labor (DOL) affecting financial advice related to retirement plans is pretended to protect consumers against high fees which necessitates the government stepping in to monitor your 401K. Next, no manager will be seen as competent and the Department of Justice will start to target small retirement managers to expose them for fraud that they can then turn into a justification for government to take over ALL 401ks. This is how the whole thing will unfold all because the off-budget expenditure (Social Security & Medicare) are up 66% during the Obama Administration and go negative next year. One way to cope with all of this is to simple merge the failed government managed funds with the private funds. Consequently, thousands of advisers around the nation are already scrambling to change their practices to fit the new regulations, which start to go into effect next January (with the balance in 2018). This coincides with the new international G20 regulation whereby all countries will start report on everyone sharing that info among themselves to hunt for taxes.

The Office of Management and Budget’s $17 Billion Dollar number for the 401K industry is too tempting for politicians to ignore when they are in desperate need of cash. They justify this fake seizure claiming retired people are being ripped-off with exorbitant fees, which is one of the biggest lies perpetrated by The Obama Administration or any Administration in the past 100 years. This even beats the Global Warming scam to raise taxes. The Obama Administration doesn’t count in that figure any fees they regard as “reasonable” compensation. To Obama, they are all unreasonable.
[...]
The nightmare that will unfold is that advisers who are really only domestic oriented will suffer losses for their clients and then be sued. The mere threat of increased liability will push many small manager/advisers away from a long tradition of charging clients based on transactions, to a compensation method that carries lower liability risks, that of billing clients a set fee. This means that paying someone a performance fee may gradually fade away. However, fee-based accounts typically don’t make money for firms and thus offer little economic sense for firms. Advisers will be forced to drop undersized retirement accounts leaving the little guy stranded. This will even impact insurance companies who do have high-commission generating annuity products. We are most likely going to see earning from companies like Lincoln Financial Group, Prudential Financial Inc., and MetLife Inc, decline. The DOL rule will undoubtedly limit investor choice and this may be the end-goal. The DOL’s final rule is increasing the pressure also on the SEC to approve a uniform fiduciary standard. This could have a serious impact on proprietary trading of banks as well.

So here it comes. The first step in regulating 401K and they will be looking to prosecute people for conflicts of interest to make an example of them to justify a further takeover.

 

[goldenequity]

whoa... great graphic... the great bail-in...
is
coming.

=======================



He's coming. Bring out your ded.

 

[oyarde]

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[Zippyjuan]

New 401k rules have no impact on what you invest your money into. They do increase allowable limits on some types of accounts.

http://money.usnews.com/money/retir...tirement-account-rules-you-need-to-know-about

5 New Retirement Account Rules You Need to Know About

Contributing to a retirement account qualifies you for tax breaks and sometimes employer contributions. A new perk retirement accounts will soon have is a legal requirement for unbiased investment advice. There have been several other tweaks to these accounts that have an impact on who is eligible to contribute and how big their tax savings will be. Here's a look at several new features of 401(k)s and IRAs.

Advice in your best interest.

Beginning in April 2017, a financial professional who makes investment recommendations to you about your 401(k) or IRA will be legally required to provide advice that is best for your situation, not the funds that provide the most compensation to the advisor. "A fiduciary level of care means the advisor must act in their client's best interest," says Chris Draughon, a certified financial planner and director of financial planning at First Coast Wealth Advisors in St. Augustine, Florida. "The advisor will now be required to disclose their conflicts of interest." This new fiduciary standard will only apply to retirement accounts, and advice provided about other types of taxable investment accounts will not be held to the same standard. However, you can still ask a financial advisor if they are willing to act as a fiduciary on your behalf for these accounts. Your existing assets will be grandfathered in under the old standard, but any new advice will be required to be in your best interest, and recommended funds must charge only a reasonable amount of compensation.

IRA charitable contributions.

Withdrawals from traditional IRAs are required after age 70 1/2, and income tax is typically due on each distribution. However, if you donate part or all of your distribution (up to $100,000) directly to a qualified charity and you're over age 70 1/2, you won't owe any tax on the transaction. "If you are required to take a withdrawal from your retirement accounts this year and you don't need that money to live on, you can avoid the taxes completely," says Cristina Guglielmetti, a certified financial planner for Future Perfect Planning in Brooklyn, New York. IRA tax-free charitable contributions have been a temporary feature of IRAs since 2006, but they were recently made permanent by a December 2015 appropriations bill.

The myRA.

A new retirement account, the myRA, was launched nationwide in November 2015. Aimed at people who don't have access to 401(k) plans, savers can contribute up to $5,500 per year to this Roth account, or $6,500 if they are age 50 or older. There is only one investment option, a Treasury savings bond that pays a variable interest rate, but it is guaranteed never to lose value. However, once you hit the maximum myRA balance of $15,000 or the account turns 30 years old, your money will be transferred to a private sector Roth IRA.

Higher Roth IRA income limits.

You can earn an extra $1,000 in 2016 and still save for retirement in a Roth IRA. Roth IRA eligibility phases out for individuals whose adjusted gross income is between $117,000 and $132,000 ($184,000 to $194,000 for couples). Roth deposits are made with after-tax dollars, but the earnings are not taxed each year, and withdrawals after age 59 1/2 from accounts at least 5 years old are tax-free. "It doesn't help you with your current year tax picture, but it helps you in future years for every year your account is growing," says Danna Jacobs, a certified financial planner and founding partner of Legacy Care Wealth in Jersey City, New Jersey. "And when you retire, assuming you are of age to take the withdrawal, then you don't have to pay taxes on that money, so that's a real boost as well."

Expanded access to the saver's credit.

Workers can earn a little bit more and still qualify for the saver's credit in 2016. The adjusted gross income cutoffs are $30,750 for individuals, $46,125 for heads of household and $61,500 for couples. This valuable tax credit for low and moderate income workers is worth between 10 and 50 percent of the amount you save in a 401(k) or IRA up to $2,000 for individuals and $4,000 for couples. The saver's credit can be claimed in addition to the tax deduction for a traditional 401(k) or IRA contribution or for a Roth account deposit, including the new myRA.

 

[NorthCarolinaLiberty]

New 401k rules have no impact on what you invest your money into.

Not according to your article:

Beginning in April 2017, a financial professional who makes investment recommendations to you about your 401(k) or IRA will be legally required to provide advice that is best for your situation, not the funds that provide the most compensation to the advisor.

So who will moderate and judge "best for your situation?" Yes, a government court. One more reason to shut off advisors and transfer oversight to the government. Just one point supporting Lucille's OP article.

By the way, ZippyJuan, which ZippyJuan are you? The first ZippyJuan was UK. The second, US. Are you progressives posting as a committee on this forum now?

Oh yeah, neg rep. I don't know if you people are being disingenuous or just lazy now.

 

[timosman]

Not according to your article:



So who will moderate and judge "best for your situation?" Yes, a government court. One more reason to shut off advisors and transfer oversight to the government. Just one point supporting Lucille's OP article.

By the way, ZippyJuan, which ZippyJuan are you? The first ZippyJuan was UK. The second, US. Are you progressives posting as a committee on this forum now?

Oh yeah, neg rep. I don't know if you people are being disingenuous or just lazy now.

Zippy's performance today is terrible. Budget cuts? Was he replaced by a blow dryer?

 

[NorthCarolinaLiberty]

Zippy's performance today is terrible. Budget cuts? Was he replaced by a blow dryer?

LOL. Yeah, he now seems like those blow dried newz people on the cable tee vee. I am not on here nearly as much as before, but the few posts I read lately from the ZippyJuan account are sub-par. Maybe they got an intern?

 

[devil21]

LOL. Yeah, he now seems like those blow dried newz people on the cable tee vee. I am not on here nearly as much as before, but the few posts I read lately from the ZippyJuan account are sub-par. Maybe they got an intern?

It's becoming very hard for the disinfo types to maintain the facade and try to argue points now that shit is starting to change noticeably in many ways. So now it's just copy pasta from government sponsored sources like US News right after 'damaging' posts are made. From the crap economy to this complete and utter joke of an election to the media manufactured race/gender wars. The disinfo types aren't even trying anymore. It's just too obvious that something isn't right.

 

[Schifference]

 

[Brian4Liberty]

They justify this fake seizure claiming retired people are being ripped-off with exorbitant fees

Investors very well might be paying too much in various fees and commissions. They might also pay too much for a used car. Should the government regulate car sales so that everyone gets a "good deal"?

 

[timosman]

Investors very well might be paying too much in various fees and commissions. They might also pay too much for a used car. Should the government regulate car sales so that everyone gets a "good deal"?

They should also introduce regulations to prevent incompetent assholes from assuming public offices.