Friday, March 6, 2015

Changes to Retirement Investing?

The Department of Labor is back with its proposal to change the rules of the road for retirement investors.  As always, what sounds good may have unintended consequences.  This is a point made today in Think Advisor.

Key point:
Consumer protection is an important goal; and where there’s money, there are unscrupulous people. The fiduciary standard may bring a higher level of service to some investors, but it may also inadvertently leave many out in the cold.
Here's why:
[The result of the rule] will be the disenfranchisement of smaller investors, as most advisors and their firms conclude that the modest fees garnered from servicing these clients do not justify the heightened potential liability.
Experts suggest this debate is going to take awhile, so it bears watching.