The US Labor Department is cracking down on bad retirement advice in order to safeguard retirees’ financial interests. Ali Khawar, Principal Deputy Assistant Secretary for Employee Benefits Security at the US Labor Department, joined Wealth! to discuss how this new rule will change the landscape and prioritize the retiree’s best interest.
Khawar acknowledges that saving for retirement "is not an easy thing to do." Khawar explains how this rule will help ensure that advisors are held responsible for the recommendations they give to people about their retirement accounts.
Khawar’s advice to those working with a retirement professional is to ask them directly if they are acting as a fiduciary "and get that in writing" to ensure protection. He clarifies that a fiduciary’s primary responsibility is to act in the client’s best interest, not their own.
"This is very complicated. And what happens sometimes with complicated concepts is it becomes easier to think about it tomorrow and not today. Unfortunately, time isn’t on your side when you’re planning for your retirement," Khawar tells Yahoo Finance.
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