House Evaluates 401(k) and IRA Financial Advice Rules

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Thank you for the free advice. I will try to apply this to my own personal plans.

Adam of FL 3:18PM May 30, 2011

Point and figure technical analysis represents chart formations graphically illustrating the price movement of any investment vehicle, specifically illustrating the battle between supply and demand.
The difference between supply and demand has been the controlling price factor throughout the ages of mankind. Only the medium of exchange is different. If you have something that nobody wants, we call it worthless. If everybody wants it we call it priceless...supply and demand. It is the weight of the public opinion backed by action or inaction that creates value. Fear, hope, facts, rumors and greed are all motivating influences. These are the creative powers of supply and demand. It is said that basically real values will eventually exert themselves. The question arises: What is the real value of a stock? The obvious answer lies in the current price, for it is here where the minds of both the seller and the buyer have met. It is here where supply and demand have both been satisfied. As long as these forces remain in balance the price remains constant. Whenever the balance shifts in favor of one or the other, to that extent the market price will rise or fall. In the final analysis, it is the balance of power and demand that creates market values. All other factors remain irrelevant. The point and figure chart is the only instrument that will accurately register the balance of power between these opposing forces.
One of the main premises of technical analysis is that prices tend to trend. Therefore, one of the main purposes of the chart is to help in the identification of the overall trend of the given stock, index, mutual fund, ETF or commodity and then point you in the direction of that trend for as long as it stays in force.
Those following the principles of the Point and Figure methodology were directed out of technology stocks in February of 2000 and into Real Estate and Utilities as the relative strength indicators reflected be asset class trends changing. Additionally, it directed its followers out of equities and into money market investment vehicles and inverse investment vehicles starting in June of 2008 thru September 11, 2008 and reentering equities starting on March 14th 2009. Charles Dow who first developed the Point and Figure methodology back in 1890 and Ernest Stabey who refined the Emotionless Market Risk Barometer in 1955 called the NYSE Bullish Percent provides the ability for every investor to stack more of the odds in their favor to avoid the kinds of market conditions that can devastate an investment portfolio and do well in the market on a relative basis. If you would like to learn more go to www.dorseywright.com or call me Craig at 561-296-3332

My 401(k) Risk Manager of FL 12:32PM May 31, 2009

As an investment advisor I resent the implications and statments that impugn my integrity in advising clients. Yes, I get paid to do my work, helping clients align their investment accounts to their time horizons, tax control needs and risk tolerance, but that doesn't mean I 'slant' the recommendations to favor investments on which I get paid more! I make the best advice for each client that I can, and my rewards come from their loyalty, contiunuing business and referrals. The current state of affairs prohibits me from advising my clients on their 401(k) account because it can be contrued that I ama cting as a fiduciary - but thsat leaves cleints without asistance. So they are free to make all the mistakes that un-counseled people often do : owning too much employer stock, fail to diversify, sell low and buy high, and many more!. If the rules would allow me to advise clients on their 401(k) plans I suspect they would a] save more, b] diversify better, c] avoid using these assets for alternative spending, d] enjoy retirements that are more fiscally sound. And if all that costs them some fees along the way then I beleive they are getting a fair value for the expense.

mike morger of OH 2:43PM March 30, 2009

Once again, our "friendly" Federal politicians want to extend their protectionist invasion of our civil liberties into our ability to make our own decisions about our investments. Since when did this country grow up on "risk-free" decisions.
Actually, this so-called concern for the employee investors is just a smoke screen designed to enable these bureaucrats to get their hands on our 401K savings accounts to further their rape of the country's finances. They want to try to position themselves as the "unbiased" advisors who will provide healthy and objective investment advice. Talk about a conflict of interest!!!!!
The next time a Federal politician trys to tell you he or she is here to help, ask them about their own cushy retirement and health care plans. They have no concerns since they will be taken care of for the rest of their lives by us.....the taxpayers.
So keep your greedy hands off of our 401K plans, Washington. I'll make my own decisions about my investment plans and accept the risk that goes along with it.

I. Pardon of NJ 5:40PM March 26, 2009

My experience with a 401k is not a good one. Many years ago, the company that I worked for had a pension plan and life was normal. Put away a little money each paycheck and the money would be there when we chose to retire. THEN the snake oil salesman came to our company and convinced the company owners that it would be better if the employees could save a dollar and the company would match the dollar. Wow, what a neat deal, save a dollar and you now have two dollars. Sounded great and no more pension plan. Instead, we now had a 401k plan that we could manage ourselves!!!!! I will never invest in a 401k and roll the dice on the 12 allowed investments again. They all tumbles and we were fools for getting into this mess. Our stock price went from $30 to $3 dollars a share. All I can say is beware of the snake oil salesman who comes to sell the 401k. Thank goodness I still have my social security check each month and that President Bush was not able to get his hands on that program.

2021 of TX 9:39PM March 25, 2009

Congress should not pass this law. Why? It would allow experts (investment advisers and plan consultants) to experiment with the employees' (participants') retirement money.
Experts simply can't predict the future--their best guess on which asset classes and which asset-allocation will outperform a diversified, core mix of no load, low cost, index funds is folly. Want proof? Okay. Can you name one expert who has done it long term (long term means more than ten years). No!
Instead, employers and employees should be educated by people who don't have any conflicts of interest at all. Anyone who sells a product, service or investment to employers and/or employees has an inherent conflict of interest See?

Frank R. Cirullo of CA 9:14AM March 25, 2009