No more delays for the DOL fiduciary rule

Part of Invesco’s Legislative Insights series

Jon VoglerDepartment of Labor (DOL) Secretary Alexander Acosta announced in a Wall Street Journal op-ed last week that the initial implementation date of the fiduciary rule will not be extended beyond June 9.

Mr. Acosta’s decision is a victory for supporters of the rule, which will require financial advisors to act in the best interests of their clients in retirement accounts. The rule had been delayed already, as it was previously scheduled for initial implementation by April 10.

Public comment on the rule will continue as the implementation date nears

Implementation of the rule is taking place in phases. On June 9, two basic provisions will become applicable:


Doing the math: How many 529 plans do you need for your family?

What to consider when saving for multiple children’s college educations

Paying for college can be expensive, especially when you have multiple children. A 529 college savings plan can be a great way to save for their higher education needs — but should you use one account or a separate account for each child? As a father of three kids, I know that sharing toys among siblings can be nearly impossible. Sharing a 529 isn’t impossible — but is it the best solution? Let’s find out.


FAFSA deadline: It’s not too late to submit your application

Parents have until June 30 to apply for federal financial aid

Today’s parents are all too aware that higher education comes with a sky-high price tag, but financial aid can offer a real lifeline when it comes to mounting college costs. Completing the Free Application for Federal Student Aid (FAFSA) may lead to considerable education savings through federal grants and work study funds — but many Americans never even apply for fear they won’t qualify.

What these parents don’t know is


529 College Savings Day: The journey to higher education begins with college savings

Celebrate the day by opening a college savings account for the child you love

Persistence is everything — just ask Sir Edmund Hillary and Tenzing Norgay, the famed first explorers to summit the world’s tallest mountain, Mount Everest. (Fun fact: That famous peak is located in the Himalayas near Ama Dablam, the mountain pictured in Invesco’s logo.) Several climbing expeditions had come close to reaching the 29,000-foot peak in the years before, but none had succeeded until Hillary and Norgay made history on May 29, 1953.

Now we celebrate 529 College Savings Day on May 29, and it’s worth considering what lessons we can learn from those mountain climbing pioneers.


DOL fiduciary rule delayed by 60 days

Part of Invesco’s Legislative Insights series

Jon VoglerOn April 7, 2017, a final rule delaying the Department of Labor’s (DOL’s) fiduciary rule by 60 days was published in the Federal Register, pushing the applicability date from April 10 to June 9 of this year. But while the extension is settled, there is still a long road ahead for this rule.

The rule is still being studied — and could change further

On Feb. 3, President Donald Trump issued a memorandum directing the DOL to prepare an updated economic and legal analysis concerning the likely impact of the final rule. (See my previous blog entry, “White House directs DOL to examine fiduciary rule.”) However, the DOL’s announcement of the delay indicates that June 9 will remain the effective date of certain requirements of the rule and the Best Interest Contract Prohibited Transaction Exemption, even if the DOL has not yet completed its re-examination, which is expected to last more than 60 days. Given that the confirmation of Labor Secretary Alexander Acosta may not occur until May, the DOL will likely need more time to coordinate the views of its career staff and political appointees about the rule and what changes to make.


529 plans: An A+ choice for employers?

College savings plans can help companies boost their employee benefits packages

Tom RowleyBusiness owners are always looking for ways to show their employees they care — and with higher education costs rising every year, I believe there’s no better time for corporations to look into adding a 529 college savings plan to their employee benefits packages.

Today, a college education is estimated to cost close to $20,000 per year for an in-state, four-year public school, and $40,000 for a private university — that’s a pretty hefty chunk of change.1 But tuition rates aren’t the only numbers on the rise. According to the Bureau of Labor Statistics, the costs to implement employee benefits programs, such as health insurance and 401(k)s, are increasing as well.2 As a result, employers