On Tuesday, May 12, 2020, David John Marotta appeared on Radio 1070 WINA’s Schilling Show with Rob Schilling to discuss government regulations which made it more difficult for the free markets to cope with COVID-19.
At stake is if the SEC is allowed to redefine what the phrase “best interest” means to make it mean something less than your actual real-world best interests.
These are four possible consequences of Regulation Best Interest.
The SEC is allowing financial professionals to hide in a lower legal requirement, not meet a fiduciary standard, and call it “Best Interest.”
On June 5th, 2019, the Securities and Exchange Commission (SEC) released their final draft of Reg BI, or “Best Interest” as it is called.
It is commonplace for special interest groups to use lobbyists to gain control of their own industry’s regulation. This failure where interests group seizes control of a governmental power is called “regulatory capture.”
That is a tremendous advantage for businesses in states with less regulatory burden.
From the blind eye of the law, this seems like a violation of SEC regulation.
It is illegal to sell contacts in the United States without requiring a prescription. A Federal Trade Commission regulation provides penalties of up to $11,000 per violation.
Listen to David Marotta discuss the dangers of government regulation, especially when invited by an industry to suppress competition in the name of “safety.”
Beware of government regulation, especially when a portion of the industry thinks it’ll be good for business.
To comply, most firms must archive and report massive amounts of information. Here are five of the more interesting regulations.
The coercive power of government is more dangerous than the free market. Special interests use it to circumvent both the law and economics.
Apparently, Never. The Dodd-Frank bill can be likened to giving the government unlimited powers and asking them to eliminate evil.
David John Marotta was featured on WINA 1070’s Rob Schilling Show on December 14, 2011. The topic was the high cost of regulation, leaning libertarian, and the roots of David’s leaning libertarian.
The United States has three sectors of the economy suffering under regulatory red tape: financial services, energy and now health care. I’m certain the financial services regulations have caused more harm than good.
Last year, eleven countries made our cut-off. This year, twelve do.
While the initial details sound promising, the downsides are many.
You can have an effectively uncapped state tax deduction if you have a high tolerance for paperwork.
This lie was PolitiFact’s 2013 lie of the year, but we dub it the lie of the century.
“And the now-20-year-old beneficiary who lost her father less than a year ago is supposed to navigate this mess on her own? No chance. This is madness.”
This notice did not offer the final guidance we were hoping for, but rather continued to push the decision further down the road.
Last year, thirteen countries made our cut-off. This year, eleven do.
We recommend waiting for the final guidance but being prepared for some sort of required distribution this year.
This amendment applies to 401(k) plans, 403(b) plans, SIMPLE IRAs, and governmental 457(b) plans.
Why create tax rules which expire so soon after they are made? The answers are as frustrating as the uncertainty the sunsets create.
Hopefully over all this amendment encourages employer plans to offer Roth options, which will be good for taxpayers, even if this additional wealthy discrimination is unwelcome.
Sophisticated tax planning can be effective at any age. However, with great complexity comes great opportunity.
With the help of Yahoo Finance and a one-cell formula, you barely need to do any work.
In 2019, the SECURE Act changed how inherited RMD rules work. After many IRS notices, we now aren’t sure how the new rules work.
In this article, I am defending the use of self-control in your financial habits.
With life insurance salesmen, life insurance often becomes the hammer and any client concern a nail.
If you’re thinking about buying an I Bond, make sure it fits properly into your financial plan, and you aren’t just chasing the high interest rate.
We advocate for billing traditional IRAs to themselves but billing Roth IRAs to a taxable brokerage account. Here is the math of why.
FRDM is interesting, but using our country specific funds plus a low cost Vanguard Emerging Market fund allows us to emphasize freedom for as low a cost as possible.
As always, it is best to confer with a tax professional on matters such as these.
One obscure way we bring value to clients is how we bill them.
While you may think that the account owner needs to stay the same, you can easily change the account owner.
This year, we decided to analyze the predictive power of these sub-scores on overall future investment returns.
At 4.0% inflation, cash will lose 82.88% of its value over 45 years. Such loss of value can ruin a retirement plan more so than any market returns. Your long term investments need to appreciate well over inflation. The best method to do that is to stay mostly invested in stocks.
If you are currently shopping for health insurance for 2022, consider getting an on-exchange health insurance plan. You may be surprised at how much subsidies you can receive.
You don’t need to know why an annuity is a bad deal to say no.
This was part of an intentional anti-ad campaign that my mother instituted to inoculate her children against the power of Madison Avenue.
Anthony Diaz was convicted on seven counts of wire fraud and four counts of mail fraud for investing in illiquid assets.
We believe these 26 companies will be an effective weight to add foreign healthcare to our portfolios.
The short answer is that most taxable distributions from inherited IRAs are taxed at the the child / beneficiary’s income tax rate. The longer answer is that there are multiple chances for inheritance to be taxed.
Avoid allowing the firm that has custody of your assets to also give you advice.
Having a financial advisor who has discretion over your accounts is only a good idea if your financial advisor is covered under the fiduciary duty and is fee-only.
Interestingly, being a fiduciary though is not a job description as much as it is descriptive of the kind of job that you do.
Roth conversions can only be performed during the IRA owner’s lifetime.