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How a 26(f) Program Can Save Your Retirement

26(f) programOn April 10, 2017, the Department of Labor will introduce a controversial measure that could incite a "retirement blackout" and cause you to miss out on $68,870 a year or more.

And one of the only ways to get a chance to capture this profit before it's too late is to "enroll" in what some call "26(f) programs," according to Money Morning Chief Investment Strategist Keith Fitz-Gerald.

If you haven't heard of a 26(f) program, that's OK. We'll tell you all about it – and how investing legends like Peter Lynch and Sir John Templeton have used 26(f) programs to bank millions.

Interestingly enough, 26(f)s aren't government-run retirement programs. They aren't traditional programs in any sense. Even better, they aren't even limited to retirees.

But before we talk more about how a 26(f) program works, it's necessary to understand the size and scope of the retirement blackout coming on April 10…

What You Can Expect from the Coming "Retirement Blackout"

On April 10, 2017, the Department of Labor will issue a new rule that will change the responsibilities of many brokers who manage retirement plans.

These brokers – including some who may already manage your retirement – will now be legally and ethically mandated to work in your best interest.

The rule will come as a surprise to many who thought these standards were already obligatory. But currently, brokers are allowed to have limited conversations with their clients about their motives or reasoning. This creates less work for the advisor and fewer fees for clients.

Regardless, the new rule may sound good to many investors. But as with most government rules meant to benefit you, there are always caveats.

And this rule has one big caveat: It could cause a complete retirement blackout for you and your family.

Urgent: An $80 billion cover-up? Feds use obscure loophole to threaten retirees… Read more…

You see, although these retirement managers will now be legally bound to work in your best interest, they will likely start charging new and excessive fees for their services.

One estimate puts the cost of this new rule at more than $5.6 billion a year, according to the Economist Incorporated. Part of this cost will be kicked back to clients in the form of a "wrap fee," which is charged based on a percentage of assets.

Some brokers will also be instituting new "uniform pricing" for certain investments, such as real estate investment trusts, in response to the rule. This could actually increase the initial price for these investments, according to InvestmentNews.

Fortunately, a 26(f) program could be your ticket to avoiding this retirement blackout… and earning up to $68,870 each year or more. But the time to act is now, because the blackout could make your 401(k), IRA, or any other retirement account much more expensive.

Continue reading to find out how a 26(f) program works and how you can "enroll."

How a 26(f) Program Works

26(f) programs are run by banks and other major financial institutions. Each program has different specifications depending on which group of companies – both public and private – it contains.

Back during the Great Depression, these programs rose to prominence thanks to President Roosevelt's administration, which also created the FDIC and Social Security.

26(f) programs gave investors the ability to "enroll" with just a small stake. Over time, they allowed investors the opportunity to accumulate a substantial monthly income along with big lump-sum payouts.

Today, 26(f) programs allow for a cheaper buy-in at many companies. In many cases, shares can be as cheap as $0.85 on the dollar on average.

Fitz-Gerald is an expert at using what he calls "26(f) programs" to your advantage – before the retirement blackout hits on April 10.

He's put together an entire 26(f) program action plan to help you navigate the April 10 rule. Inside Fitz-Gerald's report, you'll find more about how a 26(f) program works. You'll also see how investing legends have used these "programs" in the past to make millions.

You can check out Fitz-Gerald's full analysis/presentation now, right here…

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Join the conversation. Click here to jump to comments…

  1. Dave | January 2, 2017

    What is the catch??

  2. Manuel Tayao | January 8, 2017

    Hope this helps my future and that of others – MST.

  3. Ray Archuleta | January 17, 2017

    How much would a person have to invest to make 68K?

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