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Fiduciary Ruling by DOL — Broker says GO!

By Terry Savage on December 06, 2016 | Investments

Could you please explain the DOL fiduciary ruling which will take place next April? Our financial investor, Edward Jones, suggested (or should I say subtly recommended) we look elsewhere to put our investments. I am confused. I have about $2,000 in cash in my IRA to invest & he told me to look online. What gives?

Terry Says

Well, this is the fallout from a new rule that will require brokers to fully disclose all commissions on investments in retirement accounts -- and to put their clients' interests ahead of their own!  Many firms have decided not to let brokers charge commissions at all for retirement account investments; instead they will charge a fee.  given the small size of your account, the fee will be exorbitant. Here's the solution:  Immediately contact Vanguard ((www.Vanguard.com) or Fidelity (www.Fidelity.com) and tell them you want their help to do a DIRECT IRA ROLLOVER of your account.  They will give you a choice of mutual funds appropriate to your situation.  And they will encourage you to sign up for an automatic monthly contribution to your IRA, which is a GREAT idea.  And the cost will be miniscule.



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