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Yeah, yeah, yeah, 401 funds, Hitler, Nazis, Fascists, racist,,,yeah, yeah, yeah.
DONALD TRUMP’S FEBRUARY 3 executive order enabling financial advisers to continue ripping off their clients could prove a lifeline for a surprising beneficiary: the private equity industry.
The Obama White House estimated in a 2015 report that conflicts of interest cost retirement savers $17 billion annually, though that figure has been challenged.
And to break into the 401(k) market – especially with financial products that are high-risk, high-cost, and often make their money from ripping established companies apart and selling the pieces –
private equity funds would need a lot of help from the advisers who guide ordinary investors in the process. And that would require the ability to offer those advisers considerable perks and kickbacks.
On the same day that he issued his fiduciary rule executive order, Trump met with his White House jobs panel, headed by Steven Schwarzman, CEO of the world’s largest private equity firm, Blackstone.
“We’re getting rid of your regulations,” Trump told Schwarzman and his colleagues on Friday.
Late last month,
Schwarzman stressed his craving for Blackstone to get into the 401(k) market. “In life you have to have a dream,” Schwarzman said on an analyst call, “and one of our dreams is our desire and the market’s need to have more access at retail to alternative asset products.”
private equity wants to crack the 401(k) market to unlock trillions of dollars in potential capital.
Americans hold $6.8 trillion in individual retirement plans like 401(k)s. The Wall Street Journal describes this as “something of a Holy Grail quest” for the industry.
Large firms like Carlyle, Blackstone, Partners Group, and Kohlberg Kravitz Roberts (KKR) have developed a series of 401(k)-friendly products over the past couple years.
If plan advisers take this up, it would flood more money into private equity. “Five percent of the estimated $6.8 trillion and growing in 401(k)s is $340 billion – a nice chunk of change,”
these investments are far riskier than most 401(k) offerings. Contrary to popular belief,
private equity firms do not outperform the market.
Fees are also often opaque and much larger than those in passive funds, usually extracting 1-2 percent of the total capital invested and 20 percent of the profits.
A 2014 SEC study found that
over half of the private equity firms examined shifted costs to benefit themselves,
like billing investors for legal and compliance costs without their knowledge, or
forcing investors to pay for “consultants” who are actually former employees of the companies.
Giant fees guarantee private equity profits regardless of the performance of their portfolio.
According to a Harvard Law School study last October,
plan advisers routinely present limited choices to 401(k) investors, to steer them into unnecessary or risky options.
This favoritism benefits affiliated funds, and with private equity perks in the waiting, advisers would have yet another incentive to tout their products.
https://theintercept.com/2017/02/06/...ain-your-401k/
Another way America is ed and un able
Yeah, yeah, yeah, 401 funds, Hitler, Nazis, Fascists, racist,,,yeah, yeah, yeah.
^shining example of why trump fellators are re ed
hurr durr who cares about how this affects me at least he speaks his mind hurr durr
Yeah, yeah, yeah, Hitler, 401, billionaires, Nazi's, Fascists, racists, re s, Putin, Hitler, and Nazi's again,,,yeah, yeah, yeah.
except the topic wasnt about nazis or hitler or fascists
And don't hide by posting under me without quoting me. That's chicken , JK.
Uh, you Nazi, you.
How would it affect you?
because i have a 401k
My ass. You have change jar on your clothes dresser.because i have a 401k re
just because your poor mayo loving ass entire net worth is based on his collection of change you found beneath the couch doesnt mean other people dont have money invested in their 401k
Ironically that is exactly what it means. Now, go stand on the off ramp of the nearest freeway.
Boo acts like people are going to be forced to put their 401ks into risky investments.
So you're going to move your 401k money into riskier investments because of this?because i have a 401k
lol i love how you chumps always find some way to spin it...
"mexico is paying for the wall!" ...."ok well i guess we are but i dont mind since illegals cost us money anyway!"
"trump's gonna help the working class guy!" ..."i dont mind that he appointed nothing but billionaires to fix the system that made them billionaires, he's gonna do right by me!"
"at least he's not meddling in international affairs!" ..."good job stepping in and butting into international affairs!"
"trump is gonna fix the econmy!" ..."i dont mind paying extra for imported goods not like i needed that money anyway!"
lol claiming climate change is made up by china. lol "alternative facts." lol getting asshurt and tweeting incessantly about "fake news" lol getting his pushed in by the courts, lol claiming NYT is losing subscribers but he's only giving them more. lolmuh crowd size
you'll turn on him eventually.
- "No sir, you couldn't drag me away."
- "Sgt. Al Powell" - "Die Hard"
can someone explain how it is a bad idea to require retirement counselors to sit on the same side of the table as their (relatively unsophistcated) clients when they buy compicated financial products?
Fake news
Do you think the lowest fee fund is always the best investment?
No. But the point is that the person advising you should not be in a position to recommend investments that he otherwise wouldn't if not for the incentives.
Do trumpettes reflexively say this when the don't understand the subject matter? Or do you understand it but don't like it? There is nothing fake about it.
p/e hasn't been in the retiail investment business, dumb
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