White House Proposes Rule to Protect Retirement Savers from Conflicting Financial Advice

The White House announced a proposed rule by the Labor Department that would require financial advisors to provide retirement advice in the best interest of savers, rather than recommending investments that benefit the advisors financially. The rule aims to close a loophole that allows some advisors to recommend specific investment products that pay them higher commissions, creating a conflict of interest with the savers. It would establish fiduciary standards, requiring advisors to avoid recommendations that favor their own interests over retirement savers. Junk fees like hidden or bogus charges reduce savers' retirement funds. The rule ensures more of their savings go toward retirement rather than advisor commissions.