JUlrich, Author at Campbell Area AARP Chapter

Legislative Report…Daniel Nnorth and Claudia Schott

May 16, 2017 by JUlrich

Let’s talk about the Department of Labor’s (DOL) Fiduciary Rule delay. Apparently, then-President Obama asked that the DOL set up a rule that made retirement advisors put the needs of their clients first, before any financial gain to themselves. (Huh, go figure.) This rule was written, approved and signed by April of 2016. It was supposed to go into effect this month. However, during the first session of congress this year, Representative Joe Wilson (R, S.C.) introduced a bill that would delay the Fiduciary Rule by two years.

This was probably due to more protests from the financial industry groups. They had already protested vehemently back in 2010, stating regulatory costs, liability costs and client concerns were going to be a problem. Especially since the Fiduciary Rule set a much higher standard than the suitability standard from 1974. (This was way overdue to be overhauled, folks.)

Many industry groups have already jumped onboard with the new plan, including the CFP Board, the Financial Planning Association (FPA), and the National Association of Personal Financial Advisors (NAPFA). Supporters applauded the new rule, saying it should increase and streamline transparency for investors, make conversations easier for advisors entertaining changes, and most of all, prevent abuses on the part of financial advisors, such as excessive commissions and investment churning for reasons of compensation. A 2015 report by the White House Council of Economic Advisers found that biased advice drained $17 billion a year from retirement accounts.

However, the legislation has met with staunch opposition from other professionals, including brokers and planners. Financial advisors would rather be held to a “suitability” standard than a “fiduciary” standard because the latter will cost them money – in lost commissions and the added expense of compliance. The stricter fiduciary standards could cost the financial services industry an estimated $2.4 billion per year by eliminating conflicts of interest like front-end load commissions and mutual fund 12b-1 fees paid to wealth management and advisory firms.

Now this delay is costing us money and we need to do something about it, since the main impact is on retirement accounts and IRA’s. Three lawsuits have been filed against the Fiduciary Rule and it can be stopped. Not something we want. I believe we need to talk to our representatives and Senators and get the ball rolling again to keep the new standard from falling through the cracks.

President…Ken Schieck

November 28, 2017May 16, 2017 by JUlrich

It is my sad duty to pass on the sad news that Sheila Gold died on Tuesday, April 25; she had been in hospice care for almost three months due to the recurrence of cancer. Sheila had a vibrant personality, and she was one of the most enthusiastic museum supporters you could ever meet. As our Community Service rep, she was very active in seeking our support for the services at Sacred Heart ministries. After she retired from teaching Spanish and French to high school students, she spent volunteer hours in a local program called Reading Partners, where she taught reading skills to below grade level students. If you wish to make a contribution in her memory, Reading Partners was her first choice. She will be missed. A memorial service is scheduled for Sunday, May 7, at 2 p.m. at Temple Emanuel, 1010 University Ave, San Jose, a few blocks east of the Alameda.

When he was California governor, Gray Davis, a Vietnam combat veteran, designated May as Veterans Appreciation Month. During this month, government agencies such as the Veteran’s Administration, county Veterans Services Offices, the California Employment Development Department and veterans organizations such as the American Legion, Vietnam Veterans of America and Veterans of Foreign Wars pool their resources to provide an afternoon of celebration for veterans who served both in wartime and peacetime. Along with the celebration, companies interested in hiring veterans are invited to attend and provide job-seeking veterans with information about their companies and allow the veterans to interview with them. Because of logistical difficulties, this year’s event has been re-scheduled for the month of June at the San Jose Vet Center. If you know of a company that wants to hire veterans, please have them call Juanita Morales-Euresti at the San Jose Vet Center, 80 Great Oaks, San Jose at 408-993-0729. The expected date is either June 17 or June 24.

If you are a veteran who wants to attend the celebration, of course feel free to do so; there is no charge. Also, look for local celebrations on Memorial Day, May 29. And don’t forget to thank a veteran for their service.

Legislative Report…Daniel Nnorth and Claudia Schott

April 21, 2017 by JUlrich

Let’s talk about the Department of Labor’s (DOL) Fiduciary Rule delay. Apparently then-President Obama asked that the DOL set up a rule that made retirement advisors put the needs of their clients first, before any financial gain to themselves. (Huh, go figure.) This rule was written, approved and signed by April of 2016. It was supposed to go into effect this month. However, during the first session of congress this year, Representative Joe Wilson (R, S.C.) introduced a bill that would delay the fiduciary Rule by two years. This was probably due to more protests from the financial industry groups. They had already protested vehemently back in 2010, stating regulatory costs, liability costs and client concerns were going to be a problem especially since the Fiduciary Rule set a much higher standard than the suitability standard from 1974. (This was way overdue to be overhauled, folks.)

Many industry groups have already jumped onboard with the new plan, including the CFP Board, the Financial Planning Association (FPA), and the National Association of Personal Financial Advisors (NAPFA). Supporters applauded the new rule, saying it should increase and streamline transparency for investors, make conversations easier for advisors entertaining changes, and most of all, prevent abuses on the part of financial advisors, such as excessive commissions and investment churning for reasons of compensation. A 2015 report by the White House Council of Economic Advisers found that biased advice drained $17 billion a year from retirement accounts.

Now this delay is costing us folks money and we need to do something about it, since the main impact is on retirement accounts and IRA’s. Three lawsuits have been filed against the Fiduciary Rule and it can be stopped. Not something we want. I believe we need to talk to our representatives and Senators and get the ball rolling again to keep the new standard from falling through the cracks.