The Nanny Financial State -- Labor strips workers of financial guidance.

The Wall Street Journal ^ | 11-29-09 | The Wall Street Journal Editorial Staff

[GOP_Lady]

With very little media or public attention, the Obama Administration recently suspended a Bush-era rule to let employees get financial guidance from the advisers managing their 401(k) investments. The provision was designed to give average investors access to the kind of personal financial advice that is typically a privilege of the wealthy. Instead, they are likely to get no guidance at all.

The saga began in 2006 when bipartisan reforms to the Employee Retirement Income Security Act opened the door to greater personal financial services directed to the average investor. In 2008, the Labor Department proposed a rule to let the financial advisers who handle a company's 401(k) programs also provide financial guidance to employees. This means such well-known firms as Fidelity or Vanguard. The new team at Labor has now killed the rule out of supposed concern for conflicts of interest.

[jocon307]

This is a problem, I administer our 401(k) plan at work, and of course people ask “where should I put my money” which course I can’t give them any advice on. Then they ask “where is your money?” and I say: you don’t do want to do what I did!

[haroldeveryman]

Who’s advice should we trust more? That of
1. Vanguard/Fidelity?
2. The too big to fail and govt sponsored enterprises?

If you chose #2, I have some Fannie Mae securities I’d like to unload on you.