Financial Planning

Financial Planners Embrace the Fiduciary Rule

Certified financial planners aim to put you first at all times.

Back in June, it appeared that the Department of Labor regulation that requires financial professionals to act in the best interests of clients when giving retirement account advice would be implemented on schedule. Now the agency may push back full compliance to July 2019. But the self-regulatory body for CFPs is moving ahead to broaden its fiduciary standard to apply to all of its nearly 77,800 members.

The Certified Financial Planner Board of Standards requires CFPs to act as fiduciaries when providing financial planning, such as developing strategies to meet clients' goals. Now, it is proposing to require CFPs to comply with the standard whenever they give financial advice -- a change most likely to affect brokers and insurance agents who don't provide comprehensive financial planning. Securities brokers adhere to a less-stringent standard: Their recommendations must be “suitable” for a client. The DOL's fiduciary rule addresses concerns that some brokers steered retirement savers into investments with the highest fees.

The CFP board is reviewing public comments before deciding whether to adopt the proposal. If it does, the earliest it could take effect is next year.

Most Popular

Tax Wrinkles for Work-at-Home Employees During COVID-19
taxes

Tax Wrinkles for Work-at-Home Employees During COVID-19

Are your home office expenses deductible? How does going out of state to work for a while affect your tax picture? There are some interesting wrinkles…
November 9, 2020
Retirement: It All Starts with a Budget
personal finance

Retirement: It All Starts with a Budget

When you’re meeting with your financial planner, do you talk about your budget? If not, you should.
November 10, 2020
Will Joe Biden Raise YOUR Taxes?
taxes

Will Joe Biden Raise YOUR Taxes?

During the campaign, Joe Biden promised that he would raise taxes for some people. Will you be one of them?
November 10, 2020

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Peering Past the Pandemic
Travel

Peering Past the Pandemic

I’m looking forward to a time when lunches with the girls (or guys), volunteering and travel will resume.
November 24, 2020
Build a Bond Ladder
Financial Planning

Build a Bond Ladder

Exchange-traded funds give a new twist to an old technique to navigate a tricky market and manage cash flow.
November 23, 2020
Bonds Will Deliver in 2021
Investing for Income

Bonds Will Deliver in 2021

I can see no urgency to withdraw your 2020 profits from the market.
November 17, 2020