The Great Opportunity to Link Progressive Investors with Progressive Financial Advisors

Bernie Sanders (Ind-Vt)

As the current presidential campaign season develops, economic and financial concerns about the income gap, wage stagnation and retirement financial security have become paramount issues.

But as history has shown, political power is intertwined with economic power. This is true more today in the U.S. more than ever before. The obvious answer to directing the power of political economy into electoral politics is through elected officials, but for a variety of reasons, this is a dead-end effort.

Bernie Sanders (D-Vt)
Bernie Sanders (D-Vt)

One alternative is to link progressive thinking individual investors with like-minded financial advisors to advance a progressive economic agenda through existing investments (such as socially responsible mutual funds) and by focused efforts aimed at a specific issue (such as closing tax loopholes for corporations who want to hide profits overseas and avoid taxes.)

Yet while there are millions of progressive individual investors, there are not that many progressive financial advisors or at least they have not publicly identified themselves, so this makes the matchmaking more difficult.

The role of progressive financial advisors (PFA) would be to advocate for progressive political positions that are now resonating with millions of individual Americans that have totally by-passed the political and corporate establishment.

Evidence of this is seen in the raw popularity of both Senator Bernie Sanders and Donald Trump. For different reasons, both have tapped into the unsettled, seething attitudes of many Americans who have either not enjoyed financial security or been forced to serve as silent witnesses to the mismanagement of America’s political, economic and military systems.

So while these are often considered purely political problems, financial advisors know these are problems that affect their clients every day.

This is why some financial advisors should consider becoming FPA who put today’s political issues directly into their financial practices and advice.

Not only will this align PFA with like-minded individual investors, but it will also differentiate certain practices from other advisors who just offer advice without ever addressing the macro-political-economic events that shape all current financial plans for 99% of all Americans.

Individual investors who are progressives and link with PFAs should both benefit as they pursue positive financial gains while also advancing a progressive political agenda.

Advancing the Progressive Economic Agenda

While many individual investors may back away from aligning their choice of a financial advisor based on sharing political beliefs anathema or foreign, it is not an uncommon practice.

Injecting politics into the financial advisory business has existed for decades, as evidenced by the huge lobbying money financial services and insurance companies have been directing into anti-investor laws and regulations for decades.

Financial services lobbying goes wild
Financial services lobbying goes wild. Source:

Today, the financial services industry (comprised of insurance, securities and investment companies) is the nation’s largest lobbying force and spent $3.45 billion from 1998 to 2015, according to In 2015 alone, the securities and investment industry spent $48 million to advance their own interests over those of individual investors, according to the same source.

At a different level, injecting an outside philosophy into providing investment advice has existed for decades among the religious right. There are many Christian-oriented financial advisory firms which promote investment advice aligned with biblical scripture and teachings.

Niche marketing is also an accepted marketing strategy. Financial advisors who have cultivated a following among gays have existed for decades. Similarly, the progressive political movement has fostered many financial endeavors, such as co-ops, building and loan societies, fraternal lending associations, and social investing. However, these have not existed in a formalized way among progressive advisors working with like-mined individual investors.

So while the PFA suggestion is admittedly a novel and undeveloped idea, it may also be an idea who time has come; a time for a few intrepid independent investors and financial advisors to think out of the box.

So for those few, here are the progressive ideas to promote in a PFA practice. Each can be built into a module as part of a larger presentation and as a way to lead into a product or strategy discussion. banker-19295760

Note: All of the following talking point political issues come from the upcoming book, The Essential Bernie Sanders and His Vision for America by Jonathan Tasini (Chelsea Green Publishing, September 2015.)

The Progressive Economic Agenda Courtesy of Senator Sanders

  1. Stop corporations from using offshore tax havens to avoid U.S. taxes. Each and every year, the United States loses an estimated $100 billion in tax revenues due to offshore tax abuses by the wealthy and large corporations. The situation has become so absurd that one five-story office building in the Cayman Islands is now the “home” to more than 18,000 corporations.

The wealthy and large corporations should not be allowed to avoid paying taxes by setting up tax shelters in Panama, the Cayman Islands, Bermuda, the Bahamas or other tax haven countries. The first bill that Sanders introduced in the Senate (the Corporate Tax Dodging Prevention Act) would raise more than $580 billion over the next decade by eliminating the most egregious corporate offshore tax haven abuses.

  1. Establish a Robin Hood tax on Wall Street speculators. Both the economic crisis and the deficit crisis are a direct result of the greed and recklessness on Wall Street. Creating a speculation fee of just 0.03% on the sale of credit default swaps, derivatives, options, futures, and large amounts of stock would reduce gambling on Wall Street, encourage the financial sector to invest in the job-creating productive economy, and reduce the deficit by $352 billion over 10 years, according to the Joint Committee on Taxation.
  2. End tax breaks and subsidies for big oil, gas and coal companies. If we ended tax breaks and subsidies for big oil, gas, and coal companies, we could reduce the deficit by more than $113 billion over the next ten years. The five largest oil companies in the United States have made over $1 trillion in profits over the past decade. ExxonMobil is now the most profitable corporation in the world. Large, profitable fossil fuel companies do not need a tax break.
  3. Establish a Progressive Estate Tax. If we established a progressive estate tax on inherited wealth of more than $3.5 million, we could raise more than $300 billion over 10 years. Sanders introduced the Responsible Estate Tax Act that would reduce the deficit in a fair way while ensuring that 99.7% of Americans would never pay a penny in estate taxes.
  4. Tax capital gains and dividends the same as work. Taxing capital gains and dividends the same way that we tax work would raise more than $500 billion over the next decade. Warren Buffett has often said that he pays a lower effective tax rate than his secretary. The reason for this is that the wealthy obtain most of their income from capital gains and dividends, which is taxed at a much lower rate than work. Right now, the top marginal income tax for working is 39.6%, but the top tax rate on corporate dividends and capital gains is only 23.9%.
  5. Repeal all of the 2001 and 2003 Bush tax breaks for the top two percent. In January, Congress finally repealed the Bush tax breaks for the top one percent—households making more than $450,000 a year. But the Bush tax breaks have been continued for the top two percent—households with incomes between $250,000 and $450,000 a year. Repealing the Bush tax breaks for all of the top two percent would reduce the deficit by about $400 billion over the next decade. After President Clinton increased taxes on the top two percent, the economy added over 22 million jobs. After President Bush reduced taxes for the rich, the economy lost over 600,000 private sector jobs.
  6. Eliminate the cap on taxable income that goes into the Social Security Trust Fund. If we are serious about making sure that Social Security can pay all of the benefits owed to every eligible American for the next 50 to 75 years, we don’t do that by cutting benefits, we do that by scrapping the cap on taxable income so that a millionaire and a billionaire pay the same percentage of their income into Social Security as someone making $40,000 or $50,000 a year.

Right now, someone who earns $113,700 a year pays the same amount of money in Social Security taxes as a billionaire. This makes no sense. Applying the Social Security payroll tax on income above $250,000 would ensure that Social Security remains solvent for the next 50 years. This plan would only impact the wealthiest 1.3% of wage earners; 98.7% of wage earners in the United States would not see their taxes go up by one dime.

  1. Establish a currency manipulation fee on China and other countries. As almost everyone knows, China is manipulating its currency, giving it an unfair trade advantage over the United States and destroying decent paying manufacturing jobs in the process. If we imposed a currency manipulation fee on China and other currency manipulators, the Economic Policy Institute has estimated that we could raise $500 billion over 10 years and create one million jobs in the process.
  2. Reduce unnecessary and wasteful spending at the Pentagon, which now consumes over half of our discretionary budget. Much of the huge spending at the Pentagon is devoted to spending money on Cold War weapons programs to fight a Soviet Union that no longer exists. Lawrence Korb, an Assistant Secretary of Defense under Ronald Reagan, has estimated that we could achieve significant savings of around $100 billion a year at the Pentagon while still ensuring that the United States has the strongest and most powerful military in the world.
  3. Require Medicare to negotiate for lower prescription drug prices with the pharmaceutical industry. Requiring Medicare to negotiate drug prices, similarly to what the VA currently does, would save more than $240 billion over 10 years.



  1. I would like to know what firms are available to turn over an I.R.A. or a 401k.I have about a hundred thousand and will be getting another forty five thousand soon.I would like to leave Ameriprise and work with a firm that shares my values.


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