All articles tagged with #fiduciary
The article emphasizes the importance of asking if your financial advisor is a fiduciary, as this ensures they prioritize your best interests, helping you avoid costly conflicts of interest and high fees, and provides guidance on how to verify their fiduciary status.
The Biden Administration has finalized the Retirement Security Rule, expanding the definition of fiduciaries to include more financial advisers and requiring them to act in clients' best interests. This rule aims to protect investors from conflicts of interest but has sparked controversy over concerns it may limit access to financial advice for average Americans. The rule will take effect in September 2024, with full implementation a year later.
The U.S. Department of Labor is expected to introduce new rules aimed at increasing protections for investors who roll over more than $600 billion a year to Individual Retirement Accounts (IRAs). Currently, IRAs hold about $11.5 trillion, almost double the amount in 401(k) plans. While rollovers offer advantages, such as flexibility, they often come with higher fees and may not be subject to a fiduciary standard of care. The proposed Labor Department rule, which is currently under review, seeks to raise the bar on rollover advice provided by financial advisors and close loopholes, potentially subjecting all rollovers to the highest level of investor protections. This could include requiring advisors to act solely in investors' best interests and allowing investors to sue for bad rollover advice. The rule is expected to take at least two years to take effect.