It’s been a long time coming — stronger guardrails for retirement savers.
This week, the Labor Department expanded a rule that requires financial professionals to act in your best interest when providing retirement investment advice.
Consider this: An employee has amassed several hundred thousand dollars in a 401(k) plan, a common workplace retirement account. The funds have performed well, and the expenses are reasonable.
The worker is retiring soon and meets with an investment professional, who recommends she roll over all that money into higher-cost funds that don’t produce better returns than she was already receiving.
“A person could receive a much larger commission for recommending one product over another, which gives them a strong incentive to sell whatever makes them the most money, not the products that are the best for the retirement saver,” said Micah Hauptman,…
