An upcoming regulation that will affect investors' retirement accounts and the relationships they share with their advisors is now up in the air. With Donald Trump the president-elect, financial services industry experts believe the jury is still out about what may happen to the regulation when it goes into effect on April 10, 2017.
Despite all the noise, however, the U.S. Department of Labor has made it clear that it is moving forward with the fiduciary rule.
When the rule becomes effective, all financial advisors will be required to recommend what is in the best interests of clients when they offer guidance on 401(k) plan assets, individual retirement accounts or other qualified funds saved for retirement.
It's for that reason that financial advisor Rianka Dorsainvil, a millennial certified financial planner and owner of Your Greatest Contribution, feels it's important for everyone to understand the importance of the regulation. Dorsainvil, who works with Gen Y clients and helps them navigate through their financial lives, urges investors to ask key questions of advisors to ensure they have a fiduciary responsibility to put the clients' interest above their own financial gain when offering individual retirement advice.
She also stresses the need to find out how the advisor is compensated. To that point, many investors just don't realize how much they are paying in fees, so it's very important to understand exactly how the advisor gets paid.