Being in my late 50s and hoping to retire in a few years, I've been paying attention to the new federal Department of Labor rule that creates a higher standard for financial professionals who offer retirement advice. In a nutshell, it requires advisors to make recommendations designed to serve your best interests by keeping your costs low, recommending sound investments, and protecting your retirement nest egg from unnecessary risks.
Right now, loopholes in the law allow bad actors in the financial industry to provide retirement savings “advice” based on what’s best for their pocketbook, not yours. A prime example of this are "advisers” who recommend that you roll over your 401(k) savings into an IRA where in fact the investment expenses you pay are higher than those in your 401(k).
So far, legislation to stop the rule has at been thwarted, thanks to the leadership of Senator Cory Booker among others.
Many of us have worked hard to save for retirement and we deserve to be protected from a financial “adviser” who is really a salesman looking out for his or her own interests.
AARP New Jersey