According to the WSJ, a newly proposed rule by the Department of Labor will allegedly coerce workers and businesses into supporting progressive policies. Officials report it will make it easier for retirement plans to offer 401(k) funds focused on environmental, social, and governance objectives. That differed from a Trump Labor rule, which was put in place last fall, that reinforced that ERISA requires retirement plan fiduciaries to act “solely in the interest” of participants. In other news, gold and silver prices rose early Friday morning. Experts say inflation worries and a weaker dollar index caused the increase.
WSJ via Fox Business
Department of Labor proposes rule to add political directives to retirement savings
While Democrats in Congress negotiate over trillions of dollars in new spending, the Biden administration is quietly advancing its agenda through regulation. Witness a little-noticed proposed rule last week by the Labor Department that will add new political directives to your retirement savings.
The administration says the rule will make it easier for retirement plans to offer 401(k) funds focused on ESG (environmental, social and governance) objectives. In fact, the rule will coerce workers and businesses into supporting progressive policies.
An important Trump Labor rule last fall reinforced that the Employee Retirement Income Security Act (Erisa) requires retirement plan fiduciaries to act “solely in the interest” of participants. The rule prevented pension plans and asset managers from considering ESG factors like climate, workforce diversity and political donations unless they had a “material effect on the return and risk of an investment.” The rule effectively barred plans from placing workers who don’t select a 401(k) fund option into a default ESG fund.
You can read the entire story, here.
Kitco News/Jim Wyckoff
Price gains for gold, silver, on inflation worries, weaker greenback
Gold and silver prices are higher in early U.S. trading Friday, supported by increasing worries about problematic price inflation and by a lower U.S. dollar index to end the trading week. Friendly charts are also inviting speculators to the long side of gold and silver. December gold futures were last up $11.80 at $1,793.50. December Comex silver was last up $0.205 at $24.375 an ounce.
It appears the gold and silver markets have finally awakened to the fact global inflation is rising and probably won’t be just transitory. Gold prices have been trending higher since late-September and silver prices this week hit a six-week high. History shows hard assets like the precious metals become more in favor as an inflation hedge when consumer and producer prices are rising.
You can read the full story, here.
Some older Americans are facing a double debt dilemma with student and 401(k) loans
The pause on federal student loan repayments ends in January. And, on Feb. 1, interest will start to accrue again. Those monthly repayments may come as a shock for many Americans, including older borrowers.
While more than one-third of student loan borrowers are in their 20s and 30s, about 7% of those with student debt are 45 to 59 years old, and 1% are 60 or older.
Read the full story, here.