The media and Wall Street have a new campaign going on to save the intermediaries that the Executive Branch has clearly acknowledged are fleecing billions of dollars from American’s nest eggs. The intermediaries, the salesmen, who have distributed product since the advent of 401k’s and IRA, who call themselves “trusted advisors” have now been outed for what they are. As a January 13 White House memo wrote: “studies generally find that investors using financial advisors pay excess fees and that their returns are lower…” The White House memo estimates Americans could be losing in excess of $17 billion to these conflicted intermediaries.
We all know the phenomenal savings through direct models, from Expedia, to Amazon. Technology also eliminates the need for these conflicted “advisors” or salesmen that distribute investment product, but saveourretirement.com will not tell you about the more cost effective, prudent options that are now available, such as Not On My Nickel.
Bona Fide Retirement Advocacy Groups, such as The Derivative Project, Push for Real Consumer Transparency and Change with Cost-Effective Private Sector Solutions
After over six years working for retirement investor protections with the SEC, the Department of Labor and Congress, The Derivative Project realized Congress, the Department of Labor and the SEC are captured by Wall Street money. We learned the “advocates” work for Wall Street.
The only solution is for Americans to take charge, which they can, with the proper tools, direct platforms and transparency. The Derivative Project launched Not On My Nickel to empower every American to take charge to ensure their retirement was invested with the best money manager, who files regular performance with the SEC, at the lowest cost. “Advisors” do not file their performance with the SEC, but they take an annual fee, without any responsibility. Why pay twice for the same service? The White House memo is an alert, these fees are worthless and harming the average American’s nest egg.
“Save Our Retirement” Promotes this Notion “This is So Complicated You Must Have an Advisor”
Here is an excerpt from their website:
“With so many complicated investment choices to make, Americans need reliable advice they can trust.”
Not On My Nickel research demonstrates the retirement investor is fully capable of selecting a SEC performance filing money manager with the proper platform, education and tools. To counter act Not On My Nickel’s message, Wall Street began a media campaign, from the New York Times, to Huff Post, stating “everyone needs a financial advisor”, as the Saveourretirement.com website proudly displays, below.
What “Advice” Does the Average American Retirement Investor Need Concerning Investment Selection?
None: The average American needs independent, targeted education. The average American needs, like the consumer of any product, the transparency and the ability to understand what option is in their best interest. They need the tools, information and platform to make an informed choice. Workplace education on investment selection, provided by Wall Street, for a fee, is like hiring a Ford or Chevy car sales person to tell you what truck is in your best interest. 10,000 poorly performing mutual funds, that Wall Street and employers have stuffed full with American’s life savings, is confusing.
There are so very few top performing fiduciary money managers. They need to be transparent and accessible to every American. Competition must become robust, if the best cannot take on any more assets. New managers must evolve and be in the pipeline. Women must be encouraged to engage in this profession, not be a “financial advisor” that delivers no value to society. The trend, written about today in the Financial Times, “Female Fund Managers Decline”, should be the focus of retirement investor advocates, not promoting conflicted intermediaries that cost taxpayers billions to regulate and skim from American’s life savings, while adding no value.
Not On My Nickel has a message: End the “learned helplessness” Wall Street has created over the past forty years. If you want more money at retirement, take charge, spend a few minutes to learn how to empower yourself to go direct. You are very capable. Your fees will be lower, your performance will be better and academic studies estimate you will have at least $155,000 more at retirement.
Not On My Nickel Believes Every American Deserves Fiduciary Advice, From an Investment Company, Registered under the Investment Company Act of 1940, that files regular Performance with the SEC
There is a crucial difference on who is providing the “advice” and if the advisor files regular performance with the SEC, so the retirement investor can determine if the advice is any good. Without accountability as to performance and proper benchmarks, there can be no “fiduciary” relationship.
Not On My Nickel believes every American needs advice from a SEC fiduciary Investment Adviser registered under the Investment Adviser Act of 1940, however, that “Adviser” does the actual investing, files regular performance with the SEC, does rebalancing, picks the stocks or bonds. The investor knows first hand who their manager is, what their investment strategy is, and what their fees and performance are.
Saveourretirement.com – Wall Street’s Campaign to Save their Lucrative Business Model – Obsolete Intermediaries
Investment Company Act of 1940 Adviser or Intermediary Advisor, Salesperson
These conflicted advocates, operating in Wall Street’s best interest, have launched their latest campaign, a fervent attempt to save these redundant, costly intermediaries that serve to strip billions from the already stagnant wages of the middle class. Saveourretirement.com states:
“The reality is that—
1)Many advisers are providing investment advice that pays them handsomely but doesn’t serve their clients’ best interest;
2)Those conflicts of interest are taking a huge toll on the retirement savings of millions of workers and retirees; and…”
However, Better Markets’ solution simply perpetuates the excessive costs of the current situation: so-called “fiduciary advisors” who are not subject to existing securities laws. Just who is the “fiduciary advisor” that Better Markets proposes? Brokers that took a simple SEC test to say they are now a “fiduciary”, who sell a product, a Wrap Account, with high redundant fees and questionable legal recourse for the consumer. They have no additional experience, they have no higher standards, just a new filing with the SEC.
“Consumer advocate” Better Markets tweeted a recent Huff Post Money article by Paladin Registry:
Better Markets promotes a solution that is in the best interest of Wall Street, not middle class retirement savers.
Most Concerning Is a Consumer Advocate- Recommended Registry that Promote Advisers with Criminal Histories
However the most egregious push by Better Markets is promoting to retirement investors Paladin Registry’s listing of “fiduciary advisors.” Better Markets’ referral implies they are fiduciaries, ethical and will operate in your best interest, as the Paladin Registry states on their website.
A random selection of Paladin Registry “fiduciary advisors” and inspection of their SEC filings, shown below, revealed advisors that provide no transparency, charge excessively high fees and many who have criminal records.
The Solution -Transparency, Empowered and Informed Consumer, Robust Investment Company Money Manager Competition
Ask your employer to give you the opportunity to try Not On My Nickel’s tools, direct platforms and transparency. If they say “no”, what does that tell you about their concerns for your future retirement savings?
There is a better solution. Join us at Not On My Nickel.
A Paladin Registry Advisor’s Firm SEC Filings – “Felonies” are deemed Criminal Offenses
A Paladin Registry Advisor’s SEC Filings – Admits Fales Statements, Dishonest, Unethical Behavior
A Paladin Registry Advisor Firm Had Past Felonies and is Continuing to Be Subject to Ongoing Civil Proceedings