Financial advisor Mitch Tuchman sheds light on the work of Assistant Secretary Phyllis Borzi and the Employee Benefits Security Administration to redefine who is a fiduciary for the purposes of 401(k) and IRA investment advice.
“Just when you think that our government is full of incompetent career politicians who can’t get anything right, a real hero rides in.
You’ve probably never heard of Phyllis Borzi. She is an assistant secretary at the Department of Labor and she’s helping you and our country in ways few will ever appreciate.
Borzi runs the Employee Benefits Security Administration (EBSA), which “pursues policies that encourage retirement savings and that promote retirement security for all working Americans.” Our retirement security depends in large measure on the sound investment of more than $11.2 trillion in pensions, 401(k) accounts, and IRAs. To guide our decisions, we get advice from trusted experts.
But a flawed 35-year-old rule gives brokers a loophole that allows them to skirt these fiduciary standards. Under her stewardship, the Department of Labor has been pushing through regulations that would force service providers to disclose fees and limit conflicts of interest.”
Editor’s Note: The author, Mitch Tuchman is CEO and founder of MarketRiders, an online investment advisory and management service helping Americans invest for retirement.