Note: This article is courtesy of Iris.xyz
By Pam Krueger
There’s a new rule that requires advisors who offer investment advice to retirement savers to be fiduciaries, meaning they put their clients’ best interests ahead of their own potential commissions.
A non-fiduciary advisor merely must make sure that an investment is suitable for you, which leaves the door wide open for a lot more potential conflicts of interest. That’s because many brokers and other non-fiduciaries are incentivized to sell you investments that generate fat commissions, whether or not the investments are in your best interest. This new rule comes from the Department of Labor, and it’s a huge step to empower individual investors and save them billions of dollars.
According to the DoL, the White House Council of Economic Advisers estimates that U.S. consumers waste $17 billion every year on outrageous fees paid to advisors.