The Trump Administration just recently announced that it would allow the DOL Fiduciary Rule to go into effect in June. The rule has been debated, anticipated and explained for months, but now that it is finally going to go into effect, it’s a good chance to understand what it means.


What Does It Mean?

The rule is an attempt to improve the quality of advice investors receive regarding their retirement accounts. Today, financial professionals are typically not required to put their client’s best interest first when recommending investments.

Because there is no requirement to put their client’s interest first, the average investor is left trying to determine who benefits from the advice they are receiving.

The DOL Fiduciary rule states that anyone who provides investment advice for a retirement account in exchange for compensation – including insurance agents, advisers, and brokers – must consider what’s best for your finances, and not just their own.


Not So Clear

While the rule attempts to bring clarity, it may end up being confusing. Your financial professional may now tell you he or she is a fiduciary with your retirement account, but he or she is not required to act in your best interest with non-retirement accounts.

In addition, a loophole in the rule says that firms that sell only proprietary products – investments that are managed in-house or by affiliated entities – aren’t required to recommend or even mention competitor’s products.


Peace Of Mind

Another option is to choose an advisor like Annex Wealth Management. As a fiduciary, we are bound to act in your best interest with your entire portfolio. If you’re currently invested with us, you can be confident the advice you’re receiving is independent and focused on you.

Advisory Services offered through Annex Wealth Management®, LLC. Securities offered through H. Beck, Inc Member FINRA & SIPC. Annex Wealth Management®, LLC and H. Beck, Inc are separate and unrelated companies. This site has been published for residents of: AZ, CA, FL, IL, MN, NC, SC, TN, TX & WI ONLY. By entering you certify you are a resident of one of those states. All information herein has been prepared solely for information purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell, any security.


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