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