In this episode, Mark talks about 401(k) and three reasons investors should care about DOL rule:
1. Your advisor will now have to act in your best interest
- Most of you think that they did work in your best interest. but did they?
- Suitability standard: a little more opaque
- Might have something suitable for you, but it may not be what is BEST for you
2. Bring transparency to fees
- Conflicted advice usually leads to higher fees and confusion
- Most don’t know what any of the fees are
- There are additional fees you are unaware of
- Limit advisors to “reasonable” compensation
- Misleading statements and conflict of interest decrease
3. It is no substitute for vigilance
- Rules final fate is still uncertain
- Provides a layer of consumer protection
June 20, 2017