The world of financial services is changing around us whether you are prepared for it or not. On the bright side though, it is changing for the better.
In April, a new rule from the Department of Labor addressing conflicts of interest in retirement advice will go into effect. This new rule will be a significant upgrade and is ultimately necessary to help improve the relationships between financial advisors and clients. The rule states that for the first ever, advisors will have to put clients’ needs first ahead of themselves. As shocking as this may come, this rule will implement a fairer playing field when it comes to the best interests of clients who are planning on retiring. An example of how things will change is when a client retires, they like to roll over their retirement account, moving their funds from their employer’s plan to the care of the investment advisor. The new rule states that as the advisor, he/she must state how the corporate plan is far less expensive than moving your money into your own IRA account. Even though you can make more beneficial investment plans if you moved your account from a rollover into an IRA. This goes for any kind of commissionable-based investment. This new change is simply for the best. It is beneficial for the relationship between the client and the financial advisor because it will reduce all the natural conflicts of interest with regard to fees.
Read more here. Article-New-DOL-retirement-rules_Carlin-Feb-2017