Investors shaken by the first quarter volatility should brace themselves for the next one. This is according to Liz Ann Sonders and her team at Schwab, who offer a forecast for the rest of the year. There’s a new rule coming from the Labor Department that will require broker-dealers who offer advice on retirement savings to follow a “fiduciary standard”. Suzanne Aarlyn and Lisa Lambert of Reuters explain what this will mean for investors and their advisors. The vast majority of Americans already think advisors should act as fiduciaries, particularly when dealing with retirement savings. However, there’s still a lack of clarity about what a fiduciary does for clients. ThinkAdvisor reports on a recent poll that reveals the confusion.

What a Quarter! What’s Next?-  Investors were taken on a wild ride through the first quarter. However, the second quarter is starting within shouting distance of the year’s starting mark.  Liz Ann Sonders and her team at Schwab believe the trend is generally higher, but bouts of volatility are likely to persist.  “We remain neutral on equities—meaning investors should remain at their long-term equity allocations—and believe 2016 is shaping up to be much like the first quarter, volatile at times but generally trending higher.” Read more…

A New Retirement Advice Rule Will Require A Fiduciary Standard– The new rule released today, requiring broker-dealers who provide retirement advice to follow a “fiduciary standard,” will take full effect on Jan. 1, 2018, according to the Labor Department.  This standard is already applied to Registered Investment Advisors like Day & Ennis, LLC.  The new rule aims to end potential conflicts of interest by brokers who advise on individual retirement accounts (IRAs). It also seeks to protect consumers from buying unnecessary investment products. Read more…

Advisors Should Be Required To Put Clients’ Interests First, Most Americans Say–  Many Americans may not know the ins and outs of who is a fiduciary, but new research by Financial Engines finds that a big majority — 93% — think advisors should be legally required to put their clients’ interests first, especially when it comes to retirement savings. Read more…

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Best Regards,

John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller

Disclosure – The articles mentioned in Mid Week with Day & Ennis are for information and educational purposes only. They represent a sample of the numerous articles that the firm reads each week to stay current on financial and economic topics. The articles are linked to websites separate from the Day & Ennis website. The opinions expressed in these articles are the opinions of the author and not Day & Ennis. This is not an offer to buy or sell any security. Day & Ennis is under no obligation to update any of the information in these articles. We cannot attest to the accuracy of the data in the articles.