{"id":2086324,"date":"2023-11-01T06:11:02","date_gmt":"2023-11-01T10:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-unveils-new-plan-to-crack-down-on-junk-fees-in-investment-advice\/"},"modified":"2023-11-01T06:13:27","modified_gmt":"2023-11-01T10:13:27","slug":"biden-unveils-new-plan-to-crack-down-on-junk-fees-in-investment-advice","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-unveils-new-plan-to-crack-down-on-junk-fees-in-investment-advice\/","title":{"rendered":"Biden reveals fresh strategy to tackle &#8216;junk fees&#8217; in investment advice."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-unveils-new-plan-to-crack-down-on-junk-fees-in-investment-advice%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2086324&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>President Biden Takes Action to Protect American Investors<\/h2>\n<p>President Joe Biden made a significant announcement today as part of his economic agenda, Bidenomics. He unveiled new measures aimed \u2064at safeguarding American \u200dinvestors from \u2064harmful &#8220;junk \u200cfees&#8221; in retirement investment\u200d advice.<\/p>\n<p>The \u200bWhite House has identified these junk\u2062 fees as a threat to Americans&#8217; savings, \u2063benefiting financial advisers with conflicts of interest and undermining \u200cretirement security. President Biden, who hails from a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/corrupt-media-pollsters-are-using-dishonest-tactics-to-drag-america-into-war\/\" title=\"Corrupt Media Pollsters Are Using Dishonest Tactics To Drag America Into War\">middle-class background<\/a>, emphasized\u2062 the importance of \u2062protecting\u200d individuals from being taken advantage \u2062of.<\/p>\n<blockquote>\n<p>&#8220;I can tell you what, if you come from a middle-class family like I \u2064did, the thing\u200b that makes you the angriest is when you&#8217;re taken advantage \u2064of,&#8221;<\/p>\n<\/blockquote>\n<p>The\u200c Department of\u2063 Labor will\u200d propose a new rule to address this issue by closing loopholes and ensuring that financial advisers prioritize their clients&#8217; best\u2063 interests over their\u200b own potential compensation. The rule \u200cwill require recommendations \u200bto be in the savers&#8217; best\u200d interests, even for \u200casset classes like commodities\u200c or\u2063 insurance products that\u200b are not typically regulated by the Securities and Exchange Commission \u2064(SEC).<\/p>\n<p>Currently, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-unveils-new-plan-to-crack-down-on-junk-fees-in-investment-advice\/\" title=\"Biden reveals fresh strategy to tackle 'junk fees' in investment advice.\">state laws govern advice<\/a> on purchasing\u200d insurance products, leading to inconsistent protections for investors across different states. The White House recognizes\u200c the need for more comprehensive safeguards.<\/p>\n<p>The White House estimates that these new measures could increase retirement savings returns\u2064 by 0.2 percent to 1.20 percent annually. \u200bPresident Biden highlighted\u2064 the significance of even small percentage gains over a\u2063 lifetime.<\/p>\n<blockquote>\n<p>&#8220;That doesn&#8217;t \u2062sound like much. But if you&#8217;re living long, it&#8217;s a \u2063lot of money,&#8221;<\/p>\n<\/blockquote>\n<p>The impact \u200dof conflicted investment advice is substantial, with pensioners losing up to $5 billion each \u200cyear.\u2062 The sale of fixed index annuities is a particular concern.<\/p>\n<p>The new rule also extends to advice on rolling over \u2064funds from a 401(k) plan into an Individual Retirement Account (IRA) or annuity.\u2064 Currently,\u2062 one-time financial advice for transactions like \u2064these often does not meet a fiduciary \u2062standard. The new rule aims to close this loophole.<\/p>\n<p>President Biden emphasized the importance of trust in financial advice:<\/p>\n<blockquote>\n<p>&#8220;People should be able to trust that when they get advice from a so-called expert, they&#8217;re getting real help, not getting ripped off,&#8221;<\/p>\n<\/blockquote>\n<h3>Related \u200dStories<\/h3>\n<ul>\n<li>\n    <a href=\"http:\/\/www.theepochtimes.com\/world\/biden-to-welcome-trudeau-to-washington-this-week-us-ambassador-david-cohen-5520532?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Biden to Welcome Trudeau to Washington This Week: US Ambassador \u200cDavid Cohen<\/strong><\/a><br \/>\n    <br \/>\n    <span class=\"text-comp-caption\">10\/31\/2023<\/span>\n  <\/li>\n<li>\n    <a href=\"http:\/\/www.theepochtimes.com\/us\/muslim-democrat-group-demands-biden-call-for-israel-hamas-ceasefire-or-lose-their-support-5520473?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Muslim Democrat Group Demands Biden Call for \u2064Israel\u2013Hamas\u2064 Ceasefire \u200bor Lose Their \u2064Support<\/strong><\/a><br \/>\n    <br \/>\n    <span class=\"text-comp-caption\">10\/31\/2023<\/span>\n  <\/li>\n<\/ul>\n<p> <\/p>\n<h2> What inconsistencies currently exist across different\u200c states in terms of investment regulations \u200band how do they create potential confusion\u200c for investors?<\/h2>\n<p><span>  Ng to inconsistencies across different \u200cstates and potential confusion for investors. \u200bBy \u2062implementing \u2063a federal rule, President Biden aims to create a standardized approach across \u2062the country, providing clarity and \u2063protection for all American investors.<\/p>\n<p>The proposed rule will\u200b also\u2062 require financial advisers to disclose any conflicts of interest that\u200b may arise from their recommendations.\u2064 This transparency will empower investors to make informed decisions and ensure that their interests are \u200dnot compromised for \u2064the financial gain of\u2064 advisers.<\/p>\n<p>President Biden&#8217;s action comes in response to concerns raised\u200c by consumer advocates and \u2063industry experts, who \u2063have \u200clong called for \u200bstronger protections for retirement savers. Financial advisers should be held to the highest standards when providing investment advice, especially\u2064 when it comes to retirement\u200c savings, as these funds are \u200dcrucial for \u2063Americans&#8217; financial security in their golden years.<\/p>\n<p>The Biden administration&#8217;s focus on\u200b protecting American\u200b investors reflects a broader effort to rebuild\u200c and strengthen the\u2064 economy in the \u2064wake of the COVID-19 pandemic. By addressing the issue of junk fees and\u200b conflicts of interest \u200din retirement investment advice, the administration aims to promote fairness and\u2062 restore trust in the financial system.<\/p>\n<p>In addition to\u200c this rule proposal, \u2063President Biden has also expressed his \u2062commitment to expanding access \u2064to \u200bretirement savings options for more \u200cAmericans. He plans to\u200d work with Congress to make it easier for workers \u2063to \u2063save\u2062 for retirement by automatically enrolling them in individual retirement accounts (IRAs)\u200c or <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-proposes-rule-to-cut-junk-fees-for-retirement-savers\/\" title=\"Biden suggests rule to reduce unnecessary fees for retirement savers.\">employer-sponsored retirement plans<\/a>.<\/p>\n<p>Overall, President Biden&#8217;s actions signify a dedication to protecting\u2062 American investors \u200cand ensuring \u200ba fair and transparent financial system. By addressing the issue of junk fees and conflicts of interest, and by \u200bpromoting access to retirement\u200b savings options, the administration is working towards a more secure future for all Americans.<\/p>\n<p>It \u200dis important to note that these measures are \u2062part of President Biden&#8217;s broader economic agenda and\u200d his commitment\u2062 to rebuilding the US \u2064economy and \u200cpromoting financial security and prosperity \u2063for \u200dall Americans. As the administration moves forward with implementing these measures, it will be crucial to closely monitor their impact \u2064on\u200c American \u2063investors and the overall economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden unveiled measures to safeguard American investors from &#8220;junk fees&#8221; in retirement investment advice, a key component of his economic plan, Bidenomics. The White House claims these fees deplete savings, favor advisors with conflicts of interest, and jeopardize retirement security. Biden emphasized the need for change, stating, &#8220;I can assure you that&#8230;&#8221;<\/p>\n","protected":false},"author":833,"featured_media":2086325,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2086324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2086324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2086324"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2086324\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2086325"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2086324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2086324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2086324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}