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.