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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: this is a Bloomberg Business Flash and I'm Karen Moscow

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Speaker 1: and the Bloomberg futurest Report is brought to you by

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Speaker 1: Interactive Brokers and cime Group. If you're looking for global

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Speaker 1: dot com, slash, c m E Group US dot Index

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Speaker 1: futures lower with oil as investors away to speech from

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Speaker 1: Federal Reserve Chair Janet Yellen for clues on the economy

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Speaker 1: and direction of monetary policy. To check the markets every

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Speaker 1: fifteen minutes throughout the trading day on bloomberg S and

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Speaker 1: b E Mini futures down four and a half points,

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Speaker 1: DOWI mini futures down fifties seven and naz doc emuni

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Speaker 1: futures down seven dacks. In Germany's down two tenths percent

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Speaker 1: ten Your treasury up eight thirties seconds, the yield one

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Speaker 1: point eight five percent, yield on the two year point

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Speaker 1: eight four percent, NIMEX crude oil down two point seven percent,

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Speaker 1: or a dollar five to thirty eight thirty three apparel

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Speaker 1: of my school. There is a half percent or six

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Speaker 1: dollars thirty cents to the euro An OAR twelve eleven

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Speaker 1: the end one thirteen point four of one, and that's

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Speaker 1: a Bloomberg business flash. Tom and Barry, thanks so much, Karen,

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Speaker 1: greatly appreciated. Robert Johnson is a storied name within the

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Speaker 1: c FA Institute. He was the one that made the

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Speaker 1: exam so hard. There are people worldwide who have been

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Speaker 1: in therapy for ten years over his direct indirect cash

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Speaker 1: flow question on the level to exam from oh, I

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Speaker 1: don't know or something. They've never forgiven him for that question.

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Speaker 1: He has gone on from the CIFA Institute to the

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Speaker 1: American College of Financial Services or he's president in chief

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Speaker 1: executive officers. Let's first describe what the American College of

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Speaker 1: Financial Services is. This has a lot to do with

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Speaker 1: the insurance business, doesn't it is, Tom, and I appreciate

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Speaker 1: the introduction. I think I was known affectionately as the

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Speaker 1: chief torturer at the FA Institute. But the American College

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Speaker 1: is a nonprofit, accredited degree granting institution based in brent Maar, Pennsylvania,

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Speaker 1: and we have a long and storied history, was founded

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Speaker 1: in nineteen seven. We are best known for our designation

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Speaker 1: programs that Chartered Financial Consultant, that Chartered Life Underwriter, but

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Speaker 1: we also offer a degree programs. We have master's degree

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Speaker 1: programs and PhD programs. We have about twenty six thousand students.

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Speaker 1: This devolves from the traditional life insurance business wanting to

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Speaker 1: make agents smarter and all that I would suggest. In

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Speaker 1: the last five years, it's got a whole new energy

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Speaker 1: to it. Why is that it does an update on

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Speaker 1: what Mass Mutual or Northwestern Mutual or others are trying

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Speaker 1: to do to make people smarter. Well, it's all about

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Speaker 1: retirement income planning. Now, people recognize the retirement crisis that's

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Speaker 1: out there, and they recognize that it isn't simply the

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Speaker 1: accumulation stage, although that's critical, but also need to focus

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Speaker 1: on the decumulation stage. So one of the things that

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Speaker 1: we're doing at the American College is really focusing on

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Speaker 1: the retirement income planning and in fact, tom our most

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Speaker 1: popular program is the Retirement Income Certified Professional, the r

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Speaker 1: i c P program, and in a short three year

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Speaker 1: time span, we have more people in that program than

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Speaker 1: any other program. We offer. So, so let's talk a

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Speaker 1: little bit about the fiduciary standard, which some insurance companies

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Speaker 1: have been complaining is going to impact their bottom line

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Speaker 1: that you're not going to be able to pardon my friends,

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Speaker 1: jam uh an annuity into a four oh one K

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Speaker 1: or a four oh three B and pocket the five

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Speaker 1: six seven percent commission. UH. Do you guys have any

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Speaker 1: specific thoughts on that? Certainly? And I think the fiduciary

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Speaker 1: standard is that know what, nobody is going to argue

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Speaker 1: with the fact that people in the financial services arena

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Speaker 1: should act as fiduciaries. Well, people have been arguing with that.

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Speaker 1: I with them. They've been arguing about the the the

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Speaker 1: actual what the what the standards mean in terms of

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Speaker 1: after the fact, how do you determine if somebody acted

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Speaker 1: in a fiduciary manner. I think that's where the criticism is.

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Speaker 1: It isn't necessarily that people should act as fiduciaries, because

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Speaker 1: they should, but it's how that standard is enacted and

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Speaker 1: after the fact, who's held accountable and under what terms.

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Speaker 1: I think that's where the devil's in the details. In

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Speaker 1: other words, and the UH and I don't think the

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Speaker 1: d O L has done a great deal to dispel

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Speaker 1: worries about those details. What is the advice of your

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Speaker 1: school on the major conundrum that this nation has failed

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Speaker 1: at a risk. We've got millions of people who flat

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Speaker 1: out can't retire. There's no other way to gracefully put it.

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Speaker 1: What vehicles do you have to protect streams of income out? Yeah?

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Speaker 1: And I think Tom that that is a that is

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Speaker 1: the number one crisis facing the financial services arena today

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Speaker 1: is this retirement income crisis. And I think mandated mandatory

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Speaker 1: retirement plans, much like the plans that are in place

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Speaker 1: in Australia. For instance, everybody goes back to Australia. What's

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Speaker 1: in the pixie in Australia, Well, I mean they're mandated

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Speaker 1: retirement plans. It's a significant portion of income and there

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Speaker 1: are a limited number of options in those plans, and

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Speaker 1: they give education on those plans. So I think and

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Speaker 1: and basically what's happened in Australia is that the retirement

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Speaker 1: income crisis on Australia's it has virtually been eliminated in

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Speaker 1: a fairly short period of time. Now, what Australia has

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Speaker 1: also done is they eased in the requirements. Um I

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Speaker 1: think I've got my numbers fairly accurate. Weal three percent.

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Speaker 1: I think they're increasing that over time to twelve and

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Speaker 1: a half percent of income. But that's really what you

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Speaker 1: need to retire then, and especially in the low yield

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Speaker 1: environment that we have now. So they have they have

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Speaker 1: no paradox of of choice. They're not overwhelmed with a

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Speaker 1: million options. They start people saving early rather than sort

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Speaker 1: of finding religion about their retirement in their forties or fifties,

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Speaker 1: which is about average and usually very late. And what

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Speaker 1: are they doing in terms of their social security? Is

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Speaker 1: this in addition to or instead of it? Is there

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Speaker 1: are three legs to their stool. There is a social

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Speaker 1: security type program, social insurance type program, there are these

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Speaker 1: mandated insurance plans, and then there's of course whatever anybody

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Speaker 1: saves on their own. So that's the three legs of

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Speaker 1: the retirement stool that I believe is is the answer

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Speaker 1: to our retirement income conundrum here, Tom, when you look

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Speaker 1: at where rates are, we're gonna have to run your

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Speaker 1: Can we get you back again? I mean, can we

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Speaker 1: talk to you from Pennsylvania, absolutely your native Nebraska, and

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Speaker 1: maybe I can get some advice in my brackets from

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Speaker 1: Bob Johnson. Am I going to see you tom out

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Speaker 1: at the Berkshire Hathaway Annual Meeting. I make that pilgrimage

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Speaker 1: every year. I I quit going when Mr Buffett stopped

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Speaker 1: playing in ukulele. Robert Johnson, he is the American College

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Speaker 1: of Financial Services President, And this on the really interesting

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Speaker 1: idea of educating people in general and also pros and

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Speaker 1: some of the fancy mathematics of retirement planning. Speaking of

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Speaker 1: fancy mathematics, next, Douglas Cass Bloomberg surveillance cointing down to

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Speaker 1: the opening dowl brought to you by a Grand Cherokee

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Speaker 1: that I was to word it a suv. Ever, the

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Speaker 1: Grand Cherokee continues to raise the bar with its luxurious

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Speaker 1: interior legendary four by foward capability point at your local

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