Article: How Trump Hurts Workers and Wins Their Votes

A more urgent reason why worker pension funds should fire their money managers: there is an inherent conflict of interest. The money managers want to make the mostest the fastest for the sake of their commissions. They often invest in corporations that have been taken over by hedge funds. They know that these predators will strip the corporation by paying huge dividends and other tactics that will eventually put the corporation into bankruptcy. The corporate raiders will increase the amount available for dividends by underfunding worker pensions. (Note: they always fund the executive pensions).

The workers then have to make a claim on the state pension funds- which are now in jeopardy. Sears is a recent example where workers' pensions were sacrificed to dividends. I explain how the hedge funds do this in my article How Greedy Investors Looted Sears into Bankruptcy click here

Here's How It will Hit You

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Lawyers, accountants and doctors have a fiduciary duty. It's a simple concept . They can't use their professional expertise to take advantage of a client. The professional must put the client's interests above their own. For example, if an accountant knows that a client does not understand how to read a financial statement and so doesn't know the true value of their company, the accountant cannot buy the shares of that company below value.

You might expect if someone called themselves a financial advisor, like a stockbroker or a financial planner at a bank, they would have a similar duty but they don't. One of the reforms of Dodd Frank put such a duty on financial advisors but note this only when giving advice about retirement investments.

As one of Trump's first moves, he had Congress pass The Financial Choice Act which eliminated even this narrow fiduciary duty. Financial advisors once again have open season on unsuspecting clients. As these 'advisors' have no more obligations to you then a used car salesman, they can sell you products that yield the best commissions for them, not the best results for you.

Some financial advisors do accept a fiduciary duty, but you have to ask them if they do. It's such a minefield that one investment group put out an ebook on how to find a fiduciary in the financial advice field. click here

One way to check out an advisor, ask them about index funds. If they disparage them, leave!

How It Will Help Trump

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