For all the talk and concern about Congress cutting the contribution caps for 401k plan, the real news appears to be just the opposite. Sometimes, it’s better to wait for the final result rather than get worked up about what you think may happen.
Compliance
Congress may be zagging when common sense says it should be zigging. Or maybe not.
While much has been written of the lack of retirement savings among Americans, the most widely talked about change – lowering the cap on tax deductions – could exasperate the lack of retirement savings.
Thar’s gold in them thar retirement plans! Who could blame cash-starved states from trying to get a piece of that action? On the other hand, there’s plenty of blame when the regulatory arm created to protect employees places politics ahead of the best interests of retirement savers.
In the final analysis, we may get the best of both worlds, a reduced regulatory compliance burden with a market that imposes the fiduciary standard.
It’s very possible, if not very likely, the vast bulk of retirees want to simple relax. Chances are they’re more ready than others think, and just as ready as they want to be. Maybe that’s the metric every fiduciary should be focusing on.
The world of finance is unforgiving. You can’t sweet talk your way out of a bad decision and, quite often, a blunt demeanor can get a job done more effectively and efficiently than the soft ambiguity of diplomatic language.
It’s never too late to get ready for retirement, even if you think it’s too late.
Even if a President Trump rescinds the DOL’s Conflict-of-Interest Rule, the spirit of the Rule may live on.
Dire prediction for Social Security, when it rains it pours (for fees), and two sides of the same investment coin.
