New DOL Rule May Shut Down Ramsey's Advice

[Cash]

Surprised no one posted this article yet

Forbes Welcome

It didn't say anything about Clark Howard, he is the one that sounds like a rat and oddly enough looks the part

It would be funny to me if Howard had to shut his mouth over this new rule since he is always squeaking (mouses can't scream) FIDUCIARY! when it comes to life insurance agents.

Thoughts?

 

[DHK]

No, it won't shut Ramsey down. He has his legal disclaimers that states his show is for "informational and entertainment purposes only".

My prediction would be that he may simply need to add to his disclaimers that he is not acting in a fiduciary capacity with any advice given and encourage his listeners to work with advisors who are fiduciaries ONLY and he may promote others to AVOID SIGNING A BIC (Best Interest Contract) "because they're setting you up to buy high commission insurance products for your retirement plan."

A few months ago, I was watching a webinar with someone who was promoting an investment trading strategy. He was selling tickets to live training in Georgia (I can't remember his name, but Brian Tracy was promoting it). Anyway, in the beginning of his webinar, he stated explicitly that while they are RIAs, they are not giving advice in the webinar and they are not legally bound to be fiduciaries without a signed client engagement agreement.

So I don't think much will change, other than his disclosures at the beginning and end of the show.

 

[Mash]

Neither Dave Ramsey nor Clark Howard are licensed by the Insurance Commissioner .. . ..at least not in Georgia anyway. So why have they not been sanctioned and fined for giving insurance advice with no license?
Are the commissioner's afraid to do their job?

They say that their advice is for "entertainment purposes" so they skirt the law. The commissioner needs to grow some gonads.

 

[Newby]

Neither Dave Ramsey nor Clark Howard are licensed by the Insurance Commissioner .. . ..at least not in Georgia anyway. So why have they not been sanctioned and fined for giving insurance advice with no license? Are the commissioner's afraid to do their job? They say that their advice is for "entertainment purposes" so they skirt the law. The commissioner needs to grow some gonads.

What law are they skirting? They are not selling insurance.

Your mom can say anything she want to also as long as she is not an agent.

 

[Cash]

What law are they skirting? They are not selling insurance.

Your mom can say anything she want to also as long as she is not an agent.

They are making money from their advice. Under some of the proposals any form of compensation can make you a fiduciary.

Also they are being compensated for recommending certain insurance agencies.

 

[Newby]

They are making money from their advice. Under some of the proposals any form of compensation can make you a fiduciary. Also they are being compensated for recommending certain insurance agencies.

His question was "Why have they not been" meaning under current law.

 

[BusinessOwnerGuy]

This I know: Ramsey either owns piece of Zander or they pay him unusually high ad fees. He makes as much selling life insurance as any MDRT Top of the Table producer.

 

[scagnt83]

Cash is right guys. The new DOL Fiduciary regulation is not just for agents or advisors or banks.

It is covers ANYONE giving advice to a participant in a Qualified Retirement Plan, and receives compensation for doing so "FROM ANY SOURCE".

So if CNBC is paying a talking head to tell people what to do with their IRA or 401k, then that person will be considered a Fiduciary under the new regulations.

Lots of lawyers have weighed in on this and testified about it to the DOL and Congress. The majority of them say it will extend to paid "financial entertainers" when they are talking to someone about their IRA/401k/403b/Pension/etc.

 

[AboutThatLife]

Cash is right guys. The new DOL Fiduciary regulation is not just for agents or advisors or banks.

It is covers ANYONE giving advice to a participant in a Qualified Retirement Plan, and receives compensation for doing so "FROM ANY SOURCE".

So if CNBC is paying a talking head to tell people what to do with their IRA or 401k, then that person will be considered a Fiduciary under the new regulations.

Lots of lawyers have weighed in on this and testified about it to the DOL and Congress. The majority of them say it will extend to paid "financial entertainers" when they are talking to someone about their IRA/401k/403b/Pension/etc.

What if you aren't telling them what to do with it? I dont understand if this law affects me selling UL's to clients for supplemental retirement.

 

[DHK]

It only applies to IRAs and advice around qualified retirement plans.

However, if you were recommending that someone discontinue funding their IRA or qualified retirement plan, and instead fund a permanent life policy, one could say that counts as retirement advice.