John Oliver is by far one of my favorite comedy news reporters and I absolutely love how he exposed the financial industry for what it is. Not only is the above clip informative it is what we at Orca stand for. Now there are three main points that John Oliver went over, Fiduciary, Commission, and Fee’s.
*Note the investment John Oliver focuses on is 401K, which acts differently from personal investments and other goal investments.
Fiduciary: A fiduciary is a financial manager that has your best interest in mind as required by the law and can loose their right to practice finance if found otherwise. It is shocking that in today’s industry not all managers have to be fiduciary. This is something that is very important to us, as you do not want your financial planner not having your best interest in mind when making investments for your future. Here at Orca Financial we have built our core value on transparency and empowering our investors. We also work along side with other fiduciary firms like 20/20 Capital Management INC who has 20+ years of financial management and manages over 500 MILLION dollars worth of assets.
Commission: Often times financial planners are incentives by their broker (parent companies) to sell certain financial products because of the lucrative commission; life insurance and annuities are perfect example of this. The commission on some annuities can be 4% and often can be the wrong type of investment for your financial goals, but the financial adviser will push what they are told to sell to make a quick buck instead of looking out for you. This is a huge negative and one of the reasons why the Orca Mantra is to only on planning fees and asset under management fee’s we do not believe in pushing commission based products. We believe in focus on each individual client and assess our planning based on that.
Fee’s: John Oliver focuses on the fee’s inside a 401K and compares an active account to a non-active account. The main difference is one has a team that will trade stocks often in the fund, while others have an account that sits more stagnate, the active one charges more fee’s while the non active one is usually cheaper. At Orca we do the work for you through our partners where we have found low fee funds and packaged them together to get desired result allowed with a desired risk, we also strive to pick the most efficient funds where the fee’s justify the means. This is again the Orca Mantra something our partners strongly follow.
We love John Oliver and thank you for exposing the crooks out in this industry, we here at Orca are all about transparency feel free ask us any questions or get in touch with us.