+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Here's what the Obama administration's new $12 trillion-dollar rule means for your money

Apr 7, 2016, 00:03 IST

shutterstock

Advertisement

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:

Advertisement

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article