Encore: Biden’s proposals to control conflicted advice will improve retirement security

by | Nov 13, 2023 | Stock Market

President Biden has announced that the Department of Labor will propose a new rule — the Retirement Security Rule — to extend fiduciary standards and close loopholes to protect people saving for retirement against conflicted advice.  Ensuring that financial advisers make recommendations in the saver’s best interest will increase returns and make for a more secure retirement. 

Read: White House says it wants to help retirement savers avoid billions of dollars in ‘junk fees’ Indeed, fees matter a lot: an additional 100 basis points over a 40-year period reduces final assets by about one-fifth. Candidly, I haven’t been thinking about the whole issue of conflicted advice for a while. I thought we had everything under control.    DOL regulations regarding advice to employer-sponsored plans are governed by ERISA’s fiduciary rule, which requires that recommendations are made in the best interest of the client. DOL has made numerous attempts to ensure that savers would get advice from fiduciaries — albeit not always successfully. With regard to IRA rollovers, IRS regulations require that fiduciaries not “self-deal.”

More companies are offering disability insurance as part of annual benefits options. WSJ personal-finance reporter Julia Carpenter joins host J.R. Whalen to discuss questions employees should ask before signing up. Photo: Getty Images

Broker-dealers are regulated under the Securities Exchange Act of …

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