Choosing a Financial Advisor and the New Department of Labor Rules
There are some changes coming for financial advisors because the Department of Labor has just issued new rules which govern financial advice regarding retirement plans. There has been a little coverage in the mass media, but like many new rules from Washington, the final rule is complex. The rule, its exemptions and amendments are hundreds of pages long. The financial and consumer press is saying things like “The ‘fiduciary rule’ is a great victory for retirement savers – MarketWatch“, and “New Rule Says Financial Advisers Must Act In Your Best Interest – Consumer Reports“. It’s true the new rules might improve the landscape for consumers and retirement accounts, but how will the rules really affect consumers? How will it affect the process of choosing a financial advisor? In this blog posting I want to discuss some of these issues. Sorry about the length, but the subject is complicated.