As experts in personal finance, we understand the importance of protecting your hard-earned retirement savings. That’s why we’re excited to share with you the latest information on the Biden administration’s new fiduciary rule. This rule, issued by the U.S. Department of Labor, aims to crack down on investment advice that may not be in your best interest.
At Extreme Investor Network, we believe that every decision you make about your retirement should be based on what is best for you. That’s why we support regulations like this new fiduciary rule that ensure advisors, brokers, and other intermediaries are acting in your best interest.
One key aspect of the new rule is expanding the scope of when a financial professional must act as a “fiduciary,” meaning they are required to give advice that prioritizes your needs above all else. This is a crucial step in protecting retirement savers from conflicts of interest and potentially harmful investment recommendations.
The Impact on Retirement Savings
The final rule, which goes into effect on September 23, addresses two significant areas of concern: rollovers from 401(k) plans to individual retirement accounts (IRAs) and the purchase of insurance products like annuities. These areas often involve conflicts of interest that can impact the advice you receive and ultimately affect your savings.
According to the Council of Economic Advisers, Americans may be losing up to $5 billion a year due to conflicts of interest related to indexed annuities. This underscores the importance of regulations that prioritize your financial well-being.
Protecting Your Retirement Plan
When it comes to rollovers from 401(k) plans to IRAs, the amount of money involved is significant. Americans rolled over approximately $779 billion in 2022, a staggering sum that highlights the need for robust consumer protections.
At Extreme Investor Network, we believe that your retirement savings deserve the highest level of protection. That’s why we support regulations like the new fiduciary rule that set standards for financial professionals and prioritize your best interests.
While some industry groups may argue that these regulations are unnecessary, we believe that safeguarding your retirement savings should always be a top priority. With the new fiduciary rule in place, you can trust that the advice you receive is focused on helping you achieve your financial goals.
