In October 2023, President Joe Biden revealed that he intended to stop junk fees. Many industries typically add hidden fees to the original cost—the retirement savings industry is no exception.
Better Investment Advice Expected
The cause for President Biden’s action is that some retirement advisers no longer provide advice for the client’s good. Some of them, the White House said, are making commissions as high as 6.5 percent if they will recommend certain insurance products. Although most advisers are fair, the president wants to end unnecessary junk fees.After the president made his declaration, the Department of Labor proposed that investment advisers start providing better high standards for their customers. When they make investment recommendations, they must give advice based on what is best for their customers and not for themselves.
