Proposed 401(k) Reforms Stir Debate March 02, 2010 (Dow Jones) If the U.S. Labor Department has its way, the rules governing who can give Americans investment advice about their 401(k)s and IRAs, and how that advice gets delivered and paid for, soon will change. But financial advisors and others disagree dramatically on whether the proposed rules will help or harm investors.
The Obama administration's aim is to eliminate the problem of advisors with hidden conflicts of interest giving slanted advice to unsuspecting retirement savers. But will the proposed rules achieve that goal? Like many things in life, it depends on who you ask.
Most independent, fee-only advisors who make a living giving investment advice to 401(k) plan participants and IRA owners are praising the proposed rules. Broker-dealers, meanwhile, are apoplectic. Others are somewhere in between.
According to Vice President Joe Biden, who unveiled the new rules at the White House last week, "the first of the two rules would ensure workers receive unbiased advice about how to invest in their individual retirement accounts or 401(k) plans. Read the entire article here
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