Here's what the Obama administration's new $12 trillion-dollar rule means for your money
On Wednesday, the US Department of Labor announced a new fiduciary rule, which will require investment advisers to put client interests above their own when it comes to investment choices for retirement accounts.
"The DOL regulation attempts to 'level the playing field' for everyday investors who hold some $12 trillion in IRA and 401(k) plans when it comes to their dealings with financial advisers," reports Business Insider's Elena Holodny.
A 2015 report from the White House Council of Economic Advisers (CEA) estimated that fees and conflicted advice costs American middle class families about $17 billion per year, and decreases annual returns on retirement savings by one percentage point - an effect the new rule is meant to mitigate.
Here's how the new rule may affect you: