New Fiduciary Duty Rule a Good Idea?

[ERdoc]

Anybody have any thoughts on this new rule that is being debated?  Sounds like a good idea even though I do my own investing.  Wonder if they will add "other rules" to the law that might impact retirement accounts.  Should be interesting to watch.  Dave Ramsey sure isn't happy about it with his "investing advice".

 

http://www.huffingtonpost.com/2015/02/24/obama-401k-rules_n_6743646.html

 

Here is a link to Dave Ramsey's reaction.

 

http://www.huffingtonpost.com/entry/why-does-dave-ramsey-want-to-stop-you-from-saving-money_us_56ccb621e4b041136f188c21

[litovskyassetmanagement]

ERdoc wrote:

Anybody have any thoughts on this new rule that is being debated?  Sounds like a good idea even though I do my own investing.  Wonder if they will add “other rules” to the law that might impact retirement accounts.  Should be interesting to watch.  Dave Ramsey sure isn’t happy about it with his “investing advice”.

 

http://www.huffingtonpost.com/2015/02/24/obama-401k-rules_n_6743646.html

 

Here is a link to Dave Ramsey’s reaction.

 

http://www.huffingtonpost.com/entry/why-does-dave-ramsey-want-to-stop-you-from-saving-money_us_56ccb621e4b041136f188c21

Click to expand...

It is just another gimmick.  Is long as advisers have the right piece of paper, they can still do pretty much anything.  So for now some brokers might run for the hills, but after that they'll regroup and become 'fiduciaries' with the right 'holes' in their contracts to allow them to limit their liability.

Even now, there are plenty of 'fiduciaries' who would charge you 2% for assets for advice and who are not really fiduciaries in the spirit of the word.  This is especially true with retirement plans.  There are plenty of ERISA 3(38) fiduciaries who would charge 1% of assets (or more) and use high expense mutual funds (not low cost Vanguard index funds), and this is very much allowed as long as they have the legal counsel to tell them how they can make it happen without incurring the wrath of the DOL.