The New Fiduciary Standard Rule-Janiczek’s Gold Standard for Over 25 Years
The Department of Labor (DOL) will be coming out with a major decision next week that will effect virtually all financial professionals and clients, as they provide guidance that addresses the most
important decisions of our financial lives; what to do with clients 401(k) once they retire. Retirement investors are harmed – primarily in the form of higher costs and lower retirement savings –
when they receive conflicted advice that puts the adviser’s interest ahead their own.
By requiring fiduciary accountability for all advice related to retirement assets, the rule will provide much needed protections to help retirement investors navigate the complex and confusing financial services marketplace.
For many Americans, whether to rollover and how to invest their retirement nest egg, is one of the most important financial decisions they will make as there is more than $14.4 trillion of retirement assets in 401(k) plans and Individual Retirement Accounts (IRAs). Under the current regulatory framework, all advisers are not required to make rollover IRA recommendations in their clients’ best interest, leaving Americans subject to conflicted advice related to their retirement savings.
According to a recent study sponsored by Financial Engines, a Sunnyvale, Calif.-based registered investment advisor, 77 percent of Americans would support legally requiring all financial advisors to put their clients’ best interest first when providing investment advice. Most of the respondents, 93 percent, also said they felt like it is important that advisors be required to meet the standard.
Consumers want advice that is in their best interest. The person providing the advice should put your interests ahead of theirs and should have to tell you upfront about any fees or commissions they earn and any conflicts of interest that potentially could influence that advice.
Janiczek Wealth Management was originally one of the pioneers in the fee-only fiduciary standard when the founder opened our doors over 25 years ago. We have always put our client’s best interest first. The fiduciary standard mandates that we are legally bound to do what is in their best interest 100% of the time, so as information comes out in the media next week we wanted to let you know what it means but know that we have and always applied the fiduciary standard with our clients.