While the Department of Labor is busy trashing financial advisors as self-dealing hucksters who menace the retirement security of middle class Americans, Secretary Tom Perez has made it clear which advisors he holds in the highest esteem.
First, the DOL head has stated that he agrees with a White House assessment calling the retirement-savings system “conflicted” and is costing investors $17 billion in unnecessary fees annually. As a result DOL Secretary Tom Perez is supporting a move to create a fiduciary standard for advisors who handle even small retirement accounts.
According to Mr. Perez, it’s robo advisors, the purveyors algorithm-driven passive management who are really the good guys in white hats.
Mr. Perez uses Wealthfront as an example of a company that acts in the best interests of its clients while providing low-cost advice to investors with modest assets.
Now at least real financial advisors know what they’re up against.