The Fairness Doctrine

Dana here.

As I began writing this newsletter, it was the evening of the first Presidential debate. I watched it in its entirety because I no longer have faith that what I read in the news is an accurate depiction of events. I’m skeptical unless I've seen it first-hand. What a sad state of affairs.

It has not always been this way, and this viewpoint is not just my nostalgic take on the past. The law changed. In 1987 the FCC eliminated the fairness doctrine, which had been introduced in 1949 and was a policy that required the holders of broadcast licenses to both present controversial issues of public importance and to do so in a manner that was—in the FCC's view—honest, equitable, and balanced.

The first time I grasped the significance of this change in the law was several years ago while watching the movie Vice, where Christian Bale stars as Vice President Dick Cheney. That movie left me aghast by some of the political machinations that occur in Washington – on all sides.

I find the lack of balanced reporting in the media incredibly disheartening. It's easy to get into a bubble, consuming only "news" that fits our views. If you think you are exempt from this bias, watch the Netflix documentary The Social Dilemma, especially the interviews with the tech executives.

The executives explain the singular goal behind the technology on the devices we use – which is to keep us using them. It means the algorithms feed us more of the stuff that gets us all worked up. If something we see pushes our emotional buttons, we react. The device knows we lingered, shared, clicked, and commented. So it sends us more of the same. You end up receiving a news stream showing you a rather narrow narrative, a sliver of reality that an algorithm has decided will keep you clicking.

In my quest to find some objective news sources I reached out to my brother, who works for Edelman Intelligence, a market research firm in New York City. He sent me the chart below. I now try to consume news only from those sources at the top of that triangle.

As difficult as it is to find objective news, it seems it can also be difficult to find objective financial advice. I wish there were some similar "bias chart" for financial services and information sources. But there is not.

However, there is still a definition of what constitutes good advice. Trust companies have been adhering to it for years. Known as the prudent-person rule, it says that the financial manager of an account must restrict the securities selected to the types of investments someone seeking reasonable income and preservation of capital might buy.

In one research paper, The Market for Financial Advice: An Audit Study, financial advisors were audited against a set of standards. I found it insightful that they had a definition of good advice against which to measure. And it certainly didn’t include anything like “buy gold” or “go to cash” before an election.

In the finance world, as educated Certified Financial Planner®professionals, we have a clear understanding of "good advice" and how to apply it to someone saving for retirement. And as a firm with six of us carrying the advanced Retirement Management Advisor® designation, we also know what good advice means when showing someone how to build a retirement income plan.

In the media world, which controls much of what we consume as "financial advice", there are no rules. And there is no “good advice” standard. Understandably, this could lead to a lot of confusion. And it does.

We do everything we can to help people sort through that confusion. In our most recent webinar, How to Election-Proof Your Retirement, we addressed the many concerns you may have about how elections could impact your investments – and, more importantly, what you can do about it. If you missed it, you can watch it on YouTube here or via our private video page here.

We also have an upcoming webinar for those approaching retirement. 10 Scary Money Moves for Near Retirees is a perfect introduction to the decisions you’ll face – and the emotions you’ll feel – as you consider the transition into retirement. It is normal to feel nervous, even terrified, at the thought of no longer having earned income. The webinars are free, but you do have to register.
 

Register here for: 10 Scary Money Moves for Upcoming Retirees

Open Enrollment for Medicare and Affordable Care Act Plans
 
Medicare Open Enrollment—Age 65+
Medicare open enrollment runs Oct. 15 to Dec. 7, 2020.
This is your time to evaluate and compare plans. You may be able to find a plan that provides better coverage for your needs. This is also the one time per year where you can switch from an Advantage Plan back to Traditional Medicare.
 
Affordable Care Act Open Enrollment—Under Age 65
Open enrollment for Affordable Care Act plans runs Nov. 1 to Dec. 15, 2020. You can find and compare plans on healthcare.gov.
If you or a loved one under the age of 65 need coverage, you cannot be denied for pre-existing conditions.

Our next free, live webinar will be held on Tuesday, October 27,2020!

It would be nice to think about retirement with a sense of freedom, a lightness, and a bit of peace. But the truth is the word that describes retirement for most people is SCARY.

Join us for 10 Scary Money Moves for Near Retirees. We will be covering:

• How investing the same old way can haunt you in retirement.
• Trick or Treat with Social Security – how to get the Treat, not the Trick!
• The two vampires you must watch out for - taxes and health care costs.
• Why conversations with your pumpkins (children) need to be part of your plan.
• How to keep a spooky economy from ruining your retirement.

When: Tuesday, October 27th at 5pm AZ/7pm CST/ 8pm EST

You can register at: 10 Scary Money Moves for Upcoming Retirees

Podcasts & Video
Retirement Insights in the COVID-Era w/Dana Anspach
Listen to this fantastic interview Dana Anspach, CFP®, RMA®, founder of Sensible Money, LLC, had with Robert Powell, editor of Retirement Daily at The Street. You can check it out at:

• Retirement Insights in the COVID-Era w/Dana Anspach

• How to Election-Proof Your Retirement

Financial Sense is an almost-monthly publication of Sensible Money. It's about financial planning and smart money decisions, not sensation and hype. You know.... sensible.