Since January 20th, there has been much chatter on social media about safe places to move accounts or assets. Whether it’s bank accounts, brokerage accounts, advisory services, or even precious metals, many believe the grass is greener on the other side. Several have inquired about offshore options, fearing their assets are at risk from market volatility or bad actors.
It's essential to understand that global financial systems are very complex and interconnected. The federal government oversees various asset classes: the SEC for investments, the CFTC for precious metals, the FDIC for banking, and the OCC for trusts. The Offshore Compliance Initiative identifies U.S. taxpayers involved in abusive offshore transactions for tax avoidance purposes. The government is particularly cautious about accounts leaving the U.S., especially those holding tax-deferred accounts.
The ongoing activity involving DOGE dismantling federal organizations has added to the growing sentiment of mistrust. Some fear these disruptions might compromise their assets. However, multiple layers of security make it difficult for bad actors to penetrate systems. The true aim is to remove the people who safeguard these systems within the government.
When it comes to assets, the key isn’t just where your accounts are held but who manages them and how much you trust them. Building layers of trust is essential. Removing department heads doesn’t necessarily mean bad actors will take over; instead, inexperienced individuals might step in, unaware of the system’s intricacies. This scenario is akin to the “fox guarding the henhouse,” where those responsible for protection might exploit the situation for personal gain.
We find ourselves in a challenging environment where the “fox is guarding the henhouse.” This dismantling of safeguards allows bad actors to take advantage. However, many dedicated professionals remain committed to their fiduciary duty to protect your best interests. There are many “hens” in the federal government who are determined to continue to fight for your best interests.
When asked what he felt about companies dropping DEI,Tarang Amin, CEO ofE.L.F. BEAUTY, wisely stated, “I don’t know a single CEO who does not value having a diverse, equitable, and inclusive workforce.” This same logic is vital in the financial world. By working with those who have a fiduciary responsibility, we ensure they act in your best interest. Even if some guardrails are coming down, the dedicated “hens” are still working diligently to safeguard your investments. We stand with you, navigating these complexities to protect your financial future.
AtPlanning for Good, LLC, we work with trusted partners in every aspect of our practice. Establishing an account like an IRA is a great example. Before engaging with clients, we have licensing requirements for the type of transactions we are doing. We send over disclosures and brochures verifying our qualifications. To open the account, we need to verify the client’s identity and perform a Best Interest Analysis to ensure the account is suitable for the client. This analysis is reviewed by our OSJLibre Advisor NetworkandCambridge Investment Research, Inc.. We another layer by usingAssetMarkas a Third Party Asset Manager (TAMP). This adds more protection because paperwork that is not completed properly will prevent the opening of the account and the money will not move. This process is similar to other transactions and account maintenance for everything from annuities to PCRA . Everything is documented.
Project 2025 aims to hamstring regulatory authorities like the SEC, SPIC, FDIC, and indirectly FINRA (an SRO – Self-Regulating Organization). However, this doesn’t mean that appointing a “fox” to oversee this business will give bad actors access to your account. The “hens” on both sides of the aisle are working to protect clients. This is the business we are in. We must maintain your trust, especially if we understand what you value and what information gives you peace of mind. If your financial advisor broadly claims that DOGE is protecting you, make them prove it. If they can't, find one that can.
Another way to protect yourself is to make sure you are working with a trusted partner who shares your values. If you work withPlanning for Good, LLC, you know that we are committed to serving historically underrepresented communities and the people who love them. We are not taking the TQIA+ out of LGBTQIA+.
This means that many of us are reeling from what we are seeing with Trumps recent Executive Orders. We’re terrified of the damage that Elon Musk and DOGE will do that will restrict access to healthcare, undermine progress towards climate care, and eliminate the rights of LGBTQ community members… the list goes on.
Planning for Good, LLCmeans that we put people first, but we also want to be financially successful. If we’re prohibited from doing both at the same time, let’s do what we can with what we have.
This is all to say:
- We’re here for you and we get it. Ask us your questions (about healthcare, jobs, investments, taxes, etc.)
- Share with us your fears! There’s power in voicing concerns so we can address them together.
- Let’s focus on long-term goals and planning.
Know this: no matter what kind of deregulation happens, we are now, and will remain, fiduciaries to our clients. Our team follows the CFP Board's Code of Ethics and Standards of Conduct.We will not waiver from our commitment to empower our clients to make intentional financial decisions that align with their values.
Disclosures: All examples are hypothetical and for illustrative purposes only. All investments have the risk of loss, including total loss of principal. Saving more or spending less does not eliminate investment risk. Investments involve fees and expenses, which will impact the net results. Taxes can further impact net portfolio results. Consult with a tax advisor for your specific tax implications. Consult with a financial advisor before implementing or changing your investment strategy.
**Securities are offered through Registered Representatives of Cambridge Investment Research, Inc. a broker/dealer, Member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Planning for Good are separate entities.)