Where Do Various Income Groups Keep Their Money

16 Apr 2018

Here’s where the super rich keep their moneyCNBC, 2018/02/07

Once you join the three comma club, where does all of that money actually live? It’s not as though most billionaires have the bulk of their fortunes sitting in a savings account.

To break down where the super rich keep their money, Jeff Desjardins at Visual Capitalist used data from the Federal Reserve Survey of Consumer Finances from 2016 to show how wealth distribution varies for those with a net worth of $10,000 or $100,000 versus those who are worth $1 billion.

No matter where you keep your money, the amount you have of it doesn’t define if you’re rich or not. That really comes down to one simple question: If you lost your job tomorrow, how long could you survive?

The article has a graphic detailing how various income group have these assets distributed from vehicle and homes to business investments.


New Fiduciary Rules Effective June 9

3 Jul 2017

2017/06/09 – The fiduciary rule is now in effect: What you need to know – Yahoo

The rule requires financial professions of all types, including brokers, financial advisors or wealth managers, to act as a fiduciary, meaning they must act in the best interest of their clients. Before this rule went into effect, an advisor may have recommended financial products that are pretty good for you, but might have come with higher fees or commissions that benefit them. In a 2015 White House report under the Obama administration, the Council of Economic Advisors estimated that this conflict of interest costs investors $17 billion every year.

Now with the fiduciary standard in place, brokers have to be more upfront, transparent regarding fees and commissions, and recommend retirement products in their client’s best interests.

In fact, the fiduciary rule was supposed to go into effect in April, but President Trump backed the directive to delay the rule and review it again. The administration said it will reduce Americans’ access to certain retirement offerings, information and advice.

But after careful consideration, Labor Secretary Alexander Acosta confirmed that the rule would be phased in beginning June 9.