Beware of the hidden government agenda.
In this episode, I'm going to address the question, "What is the fiduciary rule in financial services?"
It sounds good on the surface, but it can have some hidden dangers that most Americans
are not aware of.
Stay with me and I'll share them with you.
My name's Doug Andrew and I've been a part of the financial services industry now for
more than 4 and a half decades.
When I was helping my own clients optimize their financial assets, minimize taxes, save
for retirement, not outlive their money, you know, I always held myself to a fiduciary
standard, which means this.
You want to put your clients' best interest first ahead of your own.
Now, I've actually seen financial planners and advisers that almost put their wife and
kids ahead their clients' wife and kids, so to speak, that's very unfortunate.
And so, that's called a fiduciary standard and recently, the Department of Labor under
the Obama administration was wanted to change and define what the fiduciary rule really
means and I'm gonna share with you why they were doing that and what was up their sleeve
because there's a lot of financial advisors who do not understand this and I'm very concerned
because now we have a Biden administration and Joe Biden was Vice President under the
Obama administration.
When Trump came in to office, he got rid of what they were planning and so I'm afraid
Biden may very well bring this back.
Here's why.
You'll hear financial advisors of times on radio or their websites say, "Hey, come to
us because we're fiduciaries."
And so, they want to set themselves apart, meaning that they hold themselves to a fiduciary
standard, which is good, that they're gonna put your best interest ahead of their own.
That's great, it sounds wonderful, right?
What they don't know is the Department of Labor had a hidden agenda when they were proposing
to change what that meant.
So, let me share with you what was up their sleeve and what I think may be coming back.
Before I do that, let me simply ask who is the best one to look out for your best interest?
You, okay?
This is why I've always empowered my clientele to be their own best fiduciary, to take ownership
and educating themselves making their own decisions instead of just turning money over
to an advisor and say, "Take care of the money," and the advisor goes, "Yeah, I'm a fiduciary,"
and so forth because there's some dangers here.
I'll give you a couple of examples.
In 2008, what happened to most Americans who had money in traditional IRA's and 401k's
in the market?
Most Americans lost an average of 40%.
Many times I will ask audiences when I go out speaking, "How many of you lost money
in 2008 or know somebody, like your parents, who lost money in 2008?"
A sea of hands go up.
I go, "Okay.
Next question.
How many of you think that is going to happen again?"
90% of the hands go up.
"Okay, so do you want to have happened to your money next time when it happens what
happened last time to your money?
Lose 40%?"
No.
"So, what are you doing differently to make sure that doesn't happen?"
And they just sit there and go, "It's in the same place."
So, who's looking out for your best interest?
I could show you how to protect yourself to never lose again when the market goes down,
so you can be your own best fiduciary in that example.
Let's talk about taxes.
Most people believe that in the future taxes will not be lower.
They're not gonna be the same.
When I ask, "How many of you think that in the future taxes will be higher?"
A sea of hands go up.
I go, "So, why are you putting money in tax-deferred IRA's and 401k's in the market to some future-perceived
unknown advantage and growing your money to this and then you're gonna withdraw your money
down the road when taxes are going to be higher?"
Is that in your best interest?
Then, why is your advisor, your fiduciary keeping your money in a tax-deferred account
when the writing's on the wall.
I can tell you right now by looking at your finances, you are not gonna be in a lower bracket.
So, are they looking out for your best interest or is it the government's best interest?
People go, "Wow.
I never thought of it that way."
So, you are your own best fiduciary.
And so, I've helped empower many people to convert their money to tax-free vehicles,
get it out of the market, make themselves and their money immune from market downturns
and also protect themselves by converting to tax-free by becoming their own best fiduciary
because most asset managers, most financial planners have your money invested in the market
in tax-deferred accounts and at the end of the day, you're gonna get clobbered with taxes
and Wallstreet was not built to create predictable income.
You cannot get predictable income.
You ask a financial advisor to show you predictable cashflow and income out of money in the market,
you'll be lucky to be shown more than a 4% payout because of the 4% rule.
Most people only average 3 and a half percent with their money in the market during the
up's and down's, okay?
That's called the 4% rule.
So, what can you do better and what is this hidden agenda I've been referring to?
So, before I share with you the hidden agenda with the DOL, if this is intriguing you, be
sure to share, click like, post a comment, subscribe to this channel.
Why?
Because it's free and I post an in-depth answer to a financial question like this almost on
a daily basis.
Click the little bell so you'll be notified when I do, but stay with me because I want
to gift you a copy of my most recent best-selling book that will help you understand what's
far better than IRA's and 401k's money in the market and where you can be your own best
fiduciary, okay?
So, what was the hidden agenda?
See, back in 2008 to 2012, the first term of the Obama administration, President Obama
decided he needed to go out and get some money.
He wanted to borrow from the general public and where is a lot of money?
It's in people's IRA's and 401k's.
In 2012, he brought in a gentleman by the name of Richard Cordray and he put him in
charge of the congressional budget office, the Consumer Finance Protection Bureau, okay?
This was a new organization under the auspices of protecting consumers.
Now, it was Richard that said, "Oh.
We don't have a 20 trillion dollar debt problem in America," now, yes we did.
He said, "No.
We have," at the time, "23 trillion dollars in yet to be taxed IRA's and 401k's and I
have an idea how to get that money before people retire."
How?
See, they were setting the stage for the next major crash because it's not a matter of if
but when.
Their plan was the next major crash, when people would say, "Oh.
Enough already."
The government was going to swoop in and save the day.
We want to protect you from losing money when the market goes down.
So, fiduciaries, and by the way, the fiduciary rule under the Department of Labor was that
any advisor who managed money in IRA's and 401k's, at the time, 23 trillion dollars,
now there's probably about 30 trillion.
Folks, they want fiduciaries managing money in those to be told what is in people's best interest.
During the next crash, they wanted to say, "Well, a fiduciary must take maybe 30, 33%
of your money and invest it in U.S. treasuries."
What?
They want to borrow 10 trillion dollars from you.
Do you know they're already looking at doing this?
They want to have people be forced to put money into U.S. treasuries and one of the
ways to do it is by saying, "Oh, under the fiduciary standard, we want people to have
their money in IRA's and 401k's, 10, 20, 33% or more into U.S. treasuries and we will guarantee you 3%.
Now, they're not paying that right now but folks, do you want to loan your money to the
government and rely on them to pay you 1, 2 or 3% to save you from market loses?
That's the hidden agenda behind the fiduciary rule.
I don't appreciate that and that's why I have never advised anybody to have money in the
market or in IRA's or 401k's.
No, you can do something far better.
What's better than an IRA or a 401k where you can take ownership?
It's called the laser fund.
So, folks, I hope this doesn't happen but it looks like it likely will.
I'm already seeing signals of the government maybe helping out pensions that are in trouble
or whatever.
They are wanting to require that a 3rd of the money is invested in U.S. treasuries because
the government is borrowing your money when they do that.
And so, heaven forbid, if you have your money tied up in qualified plans like IRA's and
401k's, 403B's, 457's, those are all qualified plans, beware.
The fiduciary standard may require a licensed fiduciary to force you to invest 10, 20, 30%
or more into U.S treasuries at a pathetic 1, 2, or 3% rate of return to protect you
from losing money.
Folks, I don't like that, that's why I have always advised people not have qualified accounts.
If you established what I call a laser fund, it'll knock the socks off of an IRA or a 401k.
It's totally tax-free.
It actually helps out America more than just rolling over and paying unnecessary tax.
It allows you to accumulate access and transfer your money tax-free.
I have average returns between 7 to 10%.
Every million dollars can generate 70 to 100,000 a year tax-free income.
This book will show you how to diversify and create the foundation for a tax-free retirement.
I would recommend 40 to 60% of your retirement income come from a portfolio of laser funds.
You'll see why when you read and study this.
It retails for $20 but I want to gift you a copy.
Here's how you can claim your free copy.
Simply go to laserfund, l-a-s-e-r fund.com or click on the link below.
You contribute adnominal amount towards the shipping and handling, I'll cover the rest
of that cost.
I'll fire out a hard copy to you free.
I will pay for the book.
There's also options there to listen and learn, watch and learn.
It's actually 2 books in 1.
This one is 200 pages without the charts and graphs and explanations.
If you learn more by stories, you flip it over and read this one.
This is 100 pages, 12 chapters with 62 actual client stories.
I want to empower you one way or another, whether you are right-brained or left-brained
or you want to use the whole brain, okay?
But this is to your brighter future and as you read and study, you'll have opportunities
to be able to have a professional help you implement any of the strategies that you learn
about in this book, but it's more important that you look out for your best interest,
you become your own fiduciary because no one is better qualified than you when you're educated
to look out for your brighter future.