PUBLIC SUBMISSION

As of: 9/21/15 

Received: September 21, 2015 

Status: Pending_Post 

Tracking No. 1jz-8l9e-i6ve 

Comments Due: September 24, 2015

Submission Type: Web

Docket: EBSA-2010-0050 

Definition of the Term ‘‘Fiduciary’’; Conflict of Interest Rule—Retirement Investment Advice; 

Notice of proposed rulemaking and withdrawal of previous proposed rule. 

Comment On: EBSA-2010-0050-0204 

Definition of the Term Fiduciary; Conflict of Interest Rule- Retirement Investment Advice

Document: EBSA-2010-0050-DRAFT-6293 

Comment on FR Doc # 2015-08831 

Submitter Information

Name: David Bern

General Comment

I understand this rule is designed to reduce fees and conflicts of interest and protect people from 

themselves whom may not understand how to correctly use options. 

While well meaning It also takes away my ability to use options correctly to actually decrease 

portfolio risk. 

That's unfair. I deserve every retirement savings tool at my disposal.

I have taken the time and energy to educate myself to learn proper options trading. By selling 

cash covered puts in my IRA I have gotten paid by other people to buy stocks I was happy to 

own at a price I was able to specify dramatically reducing my risk of ownership and improving 

my profits at the same time.

I am yerars old. The social security trustee's report tells me by the time I reach retirement age 

my Social Security benefits will likely be cut by more than 20%. 

I assume I am on my own for retirement and rely on my ability to use cash covered puts to get 

paid to buy stock's I'm interested in at a price I set and to use covered calls to get paid to sell my 

stock at prices I'm comfortable selling.

Using these cash covered puts and covered calls last year accounted for a 4.6% return on my IRA 
portfolio. Not having access to selling options in my IRA would be nothing short of devastating 

to my retirement. 

By the time I retire robbing me of 4.6% of my annual returns compounded over the next 24 years 

for a hypothetical 100K current balance will be the difference between $203K IRA and owning a 

$580K IRA.

This proposed rule could rob investors like me of 185% growth, a staggering $377K less 

retirement for each $100K currently invested. (see attached modeled retirement returns)

Please reject this well meaning but poorly written rule. 

Attachments

modeled retirement returns
under RIN 1210 – AB32 existing rule

Annual Return 3.0% 7.6%

Age Year Balance Balance percent increase 

46 0 100,000 100,000 0%

47 1 103,000 107,600 4%

48 2 106,090 115,778 9%

49 3 109,273 124,577 14%

50 4 112,551 134,045 19%

51 5 115,927 144,232 24%

52 6 119,405 155,194 30%

53 7 122,987 166,988 36%

54 8 126,677 179,679 42%

55 9 130,477 193,335 48%

56 10 134,392 208,028 55%

57 11 138,423 223,839 62%

58 12 142,576 240,850 69%

59 13 146,853 259,155 76%

60 14 151,259 278,851 84%

61 15 155,797 300,043 93%

62 16 160,471 322,847 101%

63 17 165,285 347,383 110%

64 18 170,243 373,784 120%

65 19 175,351 402,192 129%

66 20 180,611 432,758 140%

67 21 186,029 465,648 150%

68 22 191,610 501,037 161%

69 23 197,359 539,116 173%

70 24 203,279 580,089 185%

Last year in 2014 I experienced 4.6% growth in my IRA just from trading options.

The above table is a representation of what the future looks like for IRA Owners with $100K currently 

current performan 

performance unde 
Dollar increase

 -

 4,600

 9,688

 15,304

 21,494

 28,305

 35,788

 44,001

 53,002

 62,858

 73,637

 85,415

 98,274

 112,302

 127,592

 144,247

 162,376

 182,098

 203,541

 226,841

 252,147

 279,618

 309,427

 341,757

 376,809

invested. 

ce above expected 

 r RIN 1210 – AB32