If you have heard about the Department of Labor issuing new rules for investment advisors, here is what it is all about. Simply put investment advisors have the legal responsibility to act in their clients best interest only (as opposed to generating fees and other payments for themselves). This sounds like common sense, but uninformed investors have been burned in the past and once there are a few horror stories, we end up with more federal regulation.
The real question to be asked is do I need a financial advisor that I will turn my future retirement security over to?
The second question for those saving for retirement decades down the road is do I need more sophisticated investments than a good low-cost mix of index mutual funds?
The U.S. Department of Labor’s final rule on conflicts of interest will protect savers and retirees, as well as improve trust in financial advice.