Federal Rule Change in Effect Friday Means Big Changes to Retirement Investing, Says Worrell
Saturday, June 10, 2017
The U.S. Department of Labor “Fiduciary Rule” official went effect on Friday, and Jame Worrell with Strategic Retirement Partners called it "the biggest retirement plan-related rule we have seen in the last 20 years."
"It has already had a massive impact on the retirement plan industry, and could have a similar impact on retirement plan savers," said Providence's Worrell.
The DOL oversees 401k and 403b plans as well as IRAs and HSAs (health savings accounts). Currently, "brokers" that serve that market are only held to a standard which requires them to ensure their recommendations are "suitable" even if it's not in the client’s interest.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe new rule holds these brokers to the much higher "fiduciary" standard of having to recommend only what is in the client's "best interest" -- which Worrell spoke to the impacts with GoLocal News Editor Kate Nagle on GoLocal LIVE on Friday.
