As I’m sure most of you have heard by now, President Obama, along with Secretary of Labor Tom Perez, yesterday announced a push to protect Americans saving for retirement by requiring all brokers dealing with retirement accounts to abide by the fiduciary standard.
What does this mean? Being a fiduciary, like all of our financial advisers here at Personal Capital, means that we must act in the best interest of our clients. Currently, brokers only operate under the suitability standard, meaning they give advice that is “suitable” for their clients, which doesn’t necessarily always mean that it will be what is best for the client. And unfortunately, it is often the case that a broker recommends something that is in their best interest and not the client’s.
The action that President Obama and Secretary Perez have taken on advancing this rule is an important step in protecting the retirement savings for tens of millions of Americans.
Watch the video below to learn more about conflicts of interest and how to best protect your retirement savings: