Report: Rule Would Cost Middle Class $80 Billion in Lost Savings

The Washington Free Beacon highlights John Berlau's report on the Department of Labor rule that will hurt middle-class investors. 

The Department of Labor has proposed a rule that would restrict what advice a financial expert could give to employees, a move that would cost middle-class savers $80 billion in lost savings, according to a report from the Competitive Enterprise Institute.

“It will be almost inevitable that financial service providers will restrict choices of investment vehicles and strategies and look for a ‘safe harbor’ of particular investments the government would bless,” the report states. According to the report, even center-left economists have said that the fiduciary requirement is a “vague open-ended obligation with seemingly no bounds.”

“The pending Obama administration regulations could cost middle class savers $80 billion in lost savings, imposing big regulatory barriers for small investment portfolios,” said John Berlau, author of the report and a senior fellow at CEI. “Congress should act now to block implementation of the Department of Labor’s harmful fiduciary rule, which has been dubbed ‘Obamacare for Your IRA.’”

Read the full article at the Washington Free Beacon.