Since the Department of Labor released its proposed conflict-of-interest rule last April, which would make all advisors to IRA accounts and advisors to most of the country's 401(k) plans fiduciaries, the plight of Merlin Toffel and his wife has been leveraged as reason the extensive regulation is necessary.
The Toffels allegedly lost a considerable chunk of their retirement nest egg when they were advised to put their retirement savings in a variable annuity that came with 4 percent annual fees and severe surrender fees.
Labor Secretary Thomas Perez has cited the Toffels in Congressional testimony defending the necessity and extent of the proposed legislation.
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