Note: This article was provided courtesy of Iris.xyz.
By Pam Krueger
In what many are hailing as the most significant change to retirement planning in decades, when the U.S. Department of Labor announced a new rule that will affect how financial advisers can help you invest your 401(k) and IRA retirement accounts. This is a BIG DEAL; there’s more than $24 trillion worth of assets invested in American’s retirement plans.
Most importantly, the new regulation —known as the “fiduciary rule” or, as the Obama Administration likes to call it, “the conflict of interest rule” — severely curtails brokers who place their own interests before their clients.
In other words, brokers will no longer have the option of pushing investments that pay fat commissions rather than lower-cost alternatives that better serve clients investing for retirement. (The rule fully kicks in January 1, 2018.) As a former broker and the co-host of the PBS series, MoneyTrack, I applaud the new fiduciary standard.