New Fiduciary Rule Could Be Good For Investors In 2016

January 19, 2016

 

The stock market may be a little bit bumpy in 2016 but it looks like those who are focusing on retirement saving can benefit during this same period. This is because the US Department of Labor is applying the final touches to what’s known as a fiduciary rule that means a lot for anyone who has an individual retirement account or 401(k).shutterstock_47215390

This rule will alter the retirement advice business completely because it will mandate that insurance agents, brokers, banks and mutual fund companies all keep their fees low in order to protect your savings from excessive risk when you are receiving information about what to do next. One important thing to consider in relation to this regulation has to do with the case of J.P. Morgan Chase and Company. shutterstock_47215390

Right before the holidays, the biggest bank in the country agreed to pay more than $300 million to settle claims about advisors and brokers forcing clients into their own costly investment products over other options without making the required disclosures about this for conflict of interest.

According to those claims, J.P. Morgan additionally gave preference to hedge fund managers in a third party possession who paid placement fees for the market value of the client assets that were invested. It can put a drag on performance for the investor and ultimately hurt the investor tremendously, which is part of the reason this fiduciary rule is being considered to begin with.

Contact a New Jersey estate planning attorney today to get started with the planning process for your estate. Reach out to us at info@lawesq.net.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Donor Advised Funds: A Strategic Tool for Estate Planning, Tax Efficiency, and Multigenerational Wealth

Learn how donor-advised funds can support estate planning, reduce tax exposure, and simplify charitable giving for high-net-worth individuals and families. Donor-Advised Funds: Aligning Philanthropy with Financial Strategy For individuals and families focused on long-term wealth stewardship, charitable giving is often more than an act of generosity—it’s a strategic component ...

<p>The post Donor Advised Funds: A Strategic Tool for Estate Planning, Tax Efficiency, and Multigenerational Wealth first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Tax Season Is Over—Now What? Smart Financial Moves to Make After Filing

Tax filing season may be behind you, but important financial planning opportunities remain. Here’s what business owners and families should consider next. Tax Season Is Over—Now What? For many, the tax filing deadline brings a sense of relief. Documents ...

<p>The post Tax Season Is Over—Now What? Smart Financial Moves to Make After Filing first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Out-of-State Trusts: What They Are and How They Can Support Long-Term Wealth Planning

Learn how out-of-state trusts work, their potential benefits, and key considerations for business owners and families seeking tax efficiency, asset protection, and legacy planning. Out-of-State Trusts: A Strategic Tool for Modern Wealth Planning For business owners, executives, and multigenerational families, managing wealth across ...

<p>The post Out-of-State Trusts: What They Are and How They Can Support Long-Term Wealth Planning first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>