If you are a money smart consumer, you are probably aware of the discussion being held in the news today regarding the Department of Labor’s fiduciary rule. (For a definition of what the fiduciary rule is, see our Tips to Read below.) The bottom line is this: it may go away. As of around March 1, 2017, the Department of Labor is delaying the “applicability date of the new fiduciary rule.” (1) What does this mean to people like you and me? It means that if it indeed is changed, money smart consumers will need to take a front seat in understanding the finer points of investing like never before.
The purpose of today’s Post is twofold: (1) to bring this issue to your attention, and (2) provide you a series of articles and resources so you understand what the fiduciary rule is and what you should do if it is changed. In the end, just as with all financial decisions in your personal and professional money life, it is YOU who needs to understand the issues that impact your financial security.
The topic of financial planning and investing is a complex one. As with all money matters it is good practice to start by performing some research. We are providing you a list to get your research started.
√ Conflict of Interest Final Rule at the Department of Labor website:
Provides outline of the regulations and exemptions of the rule from the U.S. Department of Labor.
√ National Association of Insurance and Financial Advisors website:
The NAIFA is an organization that represents insurance and financial advisors. Visit their website to see what they are telling their members. Plus, it will help you understand their perspectives on this issue.
Articles in the news and websites related to this discussion:
√ President Trump’s order on DOL fiduciary rule creates quandary for firms, InvestmentNews.com
√ Investors need fiduciary rule for protection, Terry Savage, Chicago Tribune
Terry Savage is a well-known registered investment advisor and author who provides a good, simple list of actions consumers should take regarding this issue. In fact, regardless of the upcoming ruling, money smart consumers should be doing their homework before talking to anyone!
√ U.S. Department of Labor: Investing and Diversification
√ U.S. Security & Exchange Commission: Protect Your Money: Check Out Brokers and Investment Advisers
√ NASDAQ.com: Key Steps to Researching a Financial Advisor
√ Investment Adviser Public Disclosure website (U.S. government website)
Since MoneyBasicsU.com is all about learning the basics about money, it’s important to focus first on the research side of the equation. We are not financial advisors or do we provide guidance or recommendations related to investments. That’s not our expertise. What we do know is the importance of research! Pick up some books on investing, review U.S. government based websites, reputable authors, investment publications (check out from your library and review free content on publication websites) and then weigh in on what actions you are prepared to take. NEVER take actions with your money when you don’t fully understand what you are doing.
In the meantime, add the topic “Fiduciary Rule” to your Google Alerts or Newsfeed so you can keep updated on this topic via your favorite news app. Please share today’s Post with friends and family. Money smart consumers need to keep informed on this timely topic.
Tips to Read:
DOL Fiduciary Rule Explained as of Feb 3, 2017, by Investopedia.com, February 3, 2017
Read the current (as of 3/3/2017) Department of Labor’s fiduciary rule aka Conflict of Interest rule at their website. It could change, but you should be aware of what the fiduciary rule is now and how a change will impact you.
Under President Trump’s Direction DOL Moves to Delay Fiduciary Rule, by Jamie Hopkins, March 1, 2017, Forbes.com