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Ethan Schwartz

Trump Could Cost Future Retirees Billions

Abandoning the fiduciary rule was a mistake.

Where are the investors’ vacations?

Where are the investors’ vacations?

Photographer: Valery Hache/AFP/Getty Images

Last year, the Trump administration abandoned a regulation designed to protect U.S. savers from conflicted investment advice. Known as the fiduciary rule, it would have required more brokers and insurance agents to disclose when they’re getting paid to steer people into certain investments. It also would have banned the sale of certain retirement products when they aren’t in savers’ “best interest.”

So did the rule’s demise benefit Americans by empowering them to “make their own financial decisions,” as Trump indicated he wanted to do? The evidence suggests not. Sales of potentially questionable investment products have soared, and retirees stand to end up billions of dollars poorer.