The new rule, that protects retirement savers by setting a fiduciary standard for financial brokers, won’t be fully enacted until 2018. Meanwhile financial journalist Kathy Kristof pointed out 5 ways to avoid retirement rip-offs:
- Don’t buy from the bank as bankers are notorious for selling high-cost investments of dubious value
- Beware advisers inviting you to learn about retirement investments at hosted meals
- Stick to what you understand as good investments are straightforward
- Read as fiduciary rules will require anyone who sells retirement products to spell out any potential conflicts of interest
- Ask if you don’t understand an investment
Be wary of financial advisors that invite you to hosted meals to learn about investing for your retirement. Very useful for me.