Thank you for listening to which Tom means business this Saturday morning we appreciate you taking time to tunis and on can assess we have I guess in the studio today online nature got a lot of and this is a fellow to achieve her before you recognizes voice in fact he's on right after our show's over. But we have Andy Smith is going to be talk on this about some real invest important investment ideas today and so Andy thank you for being here Willis. John thanks for taking some time here I really appreciate it. Okay let me give a little background here just in case some of murkiness listeners are to where I can imagine how they wouldn't be but just in case. Andy Smith is a senior vice president. A financial planning and he's a co host an investment senate and investing cents. Which is her right here on can assess and 9 AM right after the show itself. And he's a frequent guest on our stations every week along with his co host and Bob Richards right. They had great guy had a lot of fun just. You know Lauren or in the studio all morning really on Saturday is where we're in different markets and different things came out but. You know it's a lot of fun in as as you well know sometimes people think that radios. A glorious distance birthday got to the got to enjoy being in a closet. And talking with here. You know appeared your producer in your in your compost their for a number hours cut that is it's just a great time so again that just really thanks for taking time with. Or really glad to have you on the which Romney's business show and and we know you have a wealth of information and tips and ideas about investing so let's kind of get right to that there's been a lot. Happening in the market of course with the election. And the new administration. And so there's there's a bunch of new info out there. Better but Hampshire is concerned about but how do you feel like the politics. And the new administration. Is going to affect or not affect. The markets and people with their investments. Blocked say this I mean in. And I know that politics can get emotional and I know that you know you say one thing and people take it 88 million different ways but. Well we're seeing from trump is that there's just this unknown. Right there's there's really no political. Background check and it. It that she can go back and point to and say look this is how he is how he acted this is what he did in this particular. Legislative situation this is what he did in this particular legislative situation and so. You know he's he's got a number of years to get decades. You know out of business experience and now he's kind of minute in a different realm. On a political side. But go back to what happened in the overnight hours on Tuesday on on election Tuesday. The markets were basically fall apart and then at some point early in the morning on Wednesday things just Turk. Well the markets don't like uncertainty. And so when the markets start to get a sense of of having more more questions answered the markets can go back to doing what what they are supposed to do they're just. You know the date they did look at all of the information. And then they logically. Go through and figure out what's gonna happen next. Don't think that that's police say is we've seen more and more situations have a trumped doing this in this situation. But in saying this in this situation the markets politics people are gonna get a little bit better sense of of kind of what to expect as we move forward but the being did that people have to remember and the thing that I would tell people. Is that don't trade on power. Just like you don't trade on emotions because political fortunes are made and lost in thirty days your job. As an investor. As as the sabres have focused on the next thirty years so that you can get Q and true retire. So so there's been a lot of changes already. And what nor people would normally look at when they're considering investing is that correct. That there is so I mean. You know there's there's a number of different sectors there's a number of different portions of the market does seem to have done better. Since the election. And there are summed it seems that seem to have done worse one of the things that work following right now is that necessarily. You know focused on a particular investment class. But it's just kind of the general feeling of the market. You know we talked a client 67 days a week we talk someone in passing sense we're talking to a woman in in the offices. There's just there's a palpable change in how people feel about their money. About how people feel about their their future retirement opportunities. And so that's just gonna translate there's there's more than a couple of people who feel that as they continued to act. As they continue to do things are and passed in certain ways. This is only gonna drive the market further and further and further because the markets go up because more people are Bynum. And so you have this large. And a group of people who are doing things that they may have put off for eight years. That's only gonna translate into more activity for the markets. OK so a lot of the listeners on can assess some of them are business owners. Some harm managers arming their key employees. But of course. With the show in particular which bombings business we focus salon on. On local businesses and how they're affected by things like this and and I noticed I was hoping you explain for you there's there's some bent some things going on with the Department of Labor. And this a conflict of interest rule what explain that force and tell us how that affects us all. All right so all our. Gash five and a half almost six years the Department of Labor that was working on this on this piece of legislation called the conflict of interest rule. And what the conflict of interest rules says does that appear in a financial services industry and you're giving people. You know advice if you. If your business is helping people with their retirement accounts so things like your IRAs or your 41 K. After January 1 when he eighteen not not only is that wrong. Cannot put their best interest first. But it's gonna be illegal. If you don't put their best interest urged when you're helping these clients. The up to this point there were there were two types of people that you could work he could work with the fiduciary. Who is legally obligated to do what is in your best interest at each and every step along the way no matter how much money you have no matter what type of account. They have to do what is best for you burst. The at the flip side of that is saying is somebody called a broker. And they deal with something called the suitability standard all they have to prove. Is that at the point of sale what they were doing for you they have to prove that that was in your best interest after the point of sale. Yes the investment blew up if you changed your mind. Yes they'd left no matter what you're basically somebody else's problem to this conflict of interest rule really wanted to make sure that if you will. As a hardworking American we're going to somebody in the financial services industry. And if you are talk and let them about your IRA courier or locate your retirement dollars. This conflict of interest rules would ensure. That this person this financial services individual is going to put you in your best interest first. That's been in the rear it's been in the news recently because. Trump issued a presidential memorandum not an executive order but a presidential memorandum that a lot of people thought were going to do away. With that conflict debenture patrol Trump's no fan of of regulation. He as this that this set kind of decreed it. You know for every new regulation you gotta give you gotta get rid of two others. Certainly thought that this conflict of interest rules gonna go away. It's not go away and in fact. There was a Texas judge just recently issued a ruling in favor of the fiduciary rules of the ruling gives advocate. Appreciate it of the fiduciary standard people like us at financial engines registered investment advisors across the country. It's it's given them our third straight judicial victory city administration here may find a way to to. And it's day. He applicability of this rule. But from what we can tell right now the conflict of interest rules stand it's a great thing for people because sure you will know. And if you're getting help that your IRA your borrowing okay. The person that across the table from you have to do it is in orbit centrists. But it seems like that would be a really important idea that most people looked like. Is it. To me yet think about going to the doctor. And the doctor comes and says but down. From the waist up. I'm gonna do it in your best and the waist down I got a drug company reps here who won bush a couple of things on yet and so we're gonna have a different conversation that's kind of what can. And that unfortunately that still is happening because you go to these brokers they have to do it is it your best interest pretty retirement accounts. But if you have like a brokerage account or taxable account trust account they can still. Kind of go back to there there'll business practices and focus on themselves to the company's first in this conflict of interest troll is a great step and it. Is a great step in the right direction. But it's not we're not all the way there yeah it is your if your that you're looking for somebody make sure that they are helping you like this matter how much money you have. Or no matter what type of account you're going to import. OK so is it hard to tell if if the brokers acting on your behalf or not. I've got is there's three things that I like people that aspect columnist street piece. And that you basically if you're working with somebody now. Com on Monday. And asking the three questions ask them Howard you paid. Which you wanna hear is that take charge and fifty basis they're very small portion. Are small percentage of bees based on the entire amount of money that they manage ports power you pay. Fiduciary. Charges honesty basis. People who are fiduciary may charge on a commission basis so they just wanna generate a whole lot of activity in the account they don't necessarily care. What happened to the account after that and about what are you take number two. Which are process. If they push all of this glossy. Advertising material and product yet there was talking about one product verses another you by some annuity six years ago in the person never calls and now all of a sudden in the seventh year when the annuity. Is is almost out of it you know withdrawal penalty period and they they want affiliate brand new and nudity. They're pushing product you would idealists somebody who has the process. Takes you you know through an entire retirement plan. And isn't trying to just generate activity for the sake of generating activities so payment process. And then finally number three what type of person RE RUS did you share. And it didn't they yes immediately. Then feel a lot better about the relationship if they hem and haw if they try to push. You know more marketing materials in front of the they wanted signs some contract exemptions so that they can go back to their old business ways. Run for the hills talked to somebody else you know get the point you know get Scott Alford they're in town. Yet with the fiduciary is not going to to skirt that issue that payment process and person just ask him point blank in in your good to go. Okay well that's some really great ideas and advice I think. We're talking with Andy Smith these with financial engines. He's a co host of the show in investing since it's on can assess every Saturday at 9 AM and Andy again we appreciate you being here let me shift gears and ask this question how how to people invest today than. In the Trout era markets. I think that there's a couple of different things to keep in mind. Just overall. Keep politics and emotion out of your investments. Are loving the government aiding the government these are not trading strategies. I emotion feeling really good about what's going on or just being absolutely depressed. About what's going on these are trading strategies to kind of keeping those things in mind. One of the things that were there were taken our client through one of the things that that Scott there. In Paris they can people through is this. What are your long term goals. You know do you wanna save for retirement you wanna send your kids your grand kids to college are you trying to pay off the house blog as a pitcher trying to do. Besides quote unquote beating the S&P 500 beating US and 500 is an and goal. It's just something that you kind of have in the back of your mind but if you go to vehicles if you write him out. You in Europe and if you and your advisor kind of go through those things. We're gonna have trump the next four years maybe the next eight years. But even if we have them for the next four years and there's somebody else that's no reason necessarily to do so to do something different which saving. Or with your investing. So what we're telling people to do right now is just what number one stay diversified. Have a lot of different money and a lot of different investments. Number Q does investments make sure that they're diversified. So you know we like exchange traded funds we like indexed bonds mutual funds because they are automatically diversified. Themselves. Bite your spent and you know hundred bucks to buy shares. You're you got a lot of different stocks got a lot of different bond in negotiators. So pure diversified if you buy diversified investments. They flexible. Right never get married to an ideology never get married to an embarrassment or allocation. Because interest rates are gonna change politics is gonna change the market's gonna change. Whatever here and apps to kinda keep pace with that these annuities. Insurance contracts these illiquid real estate. Investments tees are able to kind of keep pace with all of this huge huge changes were gonna see over the next four years. But have those goals build that plan. And make sure that you and your advisor are are reviewing this plan on a yearly basis just to make sure you're keeping pace with everything that's gone on. OK Andy well what are some pros are are there some approach round or try approved investments that. That people can make or that we should be on the look out for. You know there's there's a lot of email newsletters out there that want us to believe that. Or there's lots of these you know advertisers on CNBC. Or error you know I know that we have among our local stations and own local affiliates here words are my gosh get ready for the pro trump investment. You know rally in the U got to fight these seven stocks just send us twenty dollars for our magical newsletter and we'll tell you which is seven stocks to buy. And there's really not. Right that the best. Kind of approach from. We're trying to prove or pro peace he or pro retirement investment that you can make is just to save as much as you can for as long as he can't. There's no magic bullet there's no wonderful investment where if you piloted Julian dollars then everything's going to be fine. But on the flip side if you are not stating. There's not in the cheap and do tickets to retirement there's nothing that she can do to get you through all in all the way through retirement. Because if you're not saving you don't have that. That fuel going into your investment engine to make anything work so are their magical investments that are gonna take advantage of the next four years not really. Just got to focus understating and save as much as you can for as long as you can. All right we're talking it sandy Smith with financial engines and investment sense that show we have long can SS. And a Andy is a senior vice president of financial planning and the cohosts of inverse investing sense and we're gonna take a quick break and we'll be right back with some more. Questions and answers from Mandy.