Trump Wants to Kill the Fiduciary Rule. Here's Why That's a Big Deal for Retirement Savers

[Jimbo101]

https://time.com/money/4659440/fiduciary-rule-delayed-donald-trump/

Watch out, retirement savers. President Donald Trump has put the wheels in motion to halt the Department of Labor’s rule requiring financial advisors to act in your best interest.

President Trump signed an executive order on Friday directing the Department of Labor to review and potentially rescind a new regulation known as the “fiduciary rule,” planned to go into effect on April 10, 2017. Earlier, a White House official told TIME that “we want them to cease the implementation of this and completely review the fiduciary rule.”

Why does this matter to you? The rule would require financial advisors, and more specifically brokers, to put your interests above their own when working with your retirement accounts. In other words, they would have to act as fiduciaries, much like lawyers and doctors.

Currently, if you work with a financial advisor who is a registered broker, he or she only has to recommend investments that are “roughly suitable” for you. That means if your advisor has the option between two similar mutual funds, but one pays out a higher commission, he or she can put you in that one—even if the other fund has lower fees and would boost your portfolio in the long run. The Trump administration wants to keep this system in place, arguing that the fiduciary rule will limit investment choices and burden the industry with unnecessary regulations.

Forbes Link

[elleng]

1. Repugs been fighting that one for a long time, NO SURPRISE!

[MattP]

2. The had a congressman on saying it was unfair because financial advisors couldn't sell r

Profitable products

[TeamPooka]

3. next up: doctors can let you die and lawyers can pretend to defend you. nt