If you have been paying attention to the news, you may have heard about the Department of Labor’s long-anticipated fiduciary rule that was passed early this spring. The new regulations that accompany the rule are expected to not only significantly alter how people plan for retirement, but also protect individuals from biased retirement advice.
But you may be wondering, what exactly is a fiduciary?
A fiduciary is an individual or firm that is committed to putting their client’s interests first – rather than its own. Advisors will be required by law to adhere to this standard and offer complete transparency, even when it comes to clear and upfront fees.
Before this ruling, recommendations made by advisors only had to be “suitable,” meaning that advisors could sell products riddled with high fees in order to earn a higher commission, even if a lower-priced option was equally as applicable.
According to a report from the White House Council of Economic Advisers (CEA) in 2015, fees and biased advice cost middle-class American families an average of $17 billion a year. Although the new DOL rule is a step toward protecting the average investor, there will still be Wall Street brokerage firms that can sell proprietary products – which means the potential for bias remains.
Despite the industry changes in the last year, working with a fiduciary is as important as it has ever been.
At American Financial Investments, LLC, we are dedicated to providing you with personalized financial solutions and making sure that your needs and goals are put above anything else. Ruling or not, we have always been devoted to serving our clients with the best advice we can offer – free of bias or conflicting interests.
We strive to provide you with the solutions that we believe align with your unique goals, and work with you to make sure your financial planning is on the right track to reach those goals. When you do business with our team, you will know exactly what you are paying for or investing in because of our total transparency and disclosure regarding our compensation and investment methods.
In the current economic landscape, it is more important than ever that you choose to work with a financial professional who puts your best interests first. Finding an advisor who can provide you a fiduciary-level of service, investment knowledge and the transparency you need in order to reach your retirement goals is more important than ever. QCBN
By Ronald Stevenson and Barbara Clark Stevenson
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