Finance rule defies personal interests

I understand that the Department of Labor believes that when my annuity adviser receives a commission that he or she may not be acting in my best interest. But I cannot understand how moving my money from a 401(k) where my money is at risk in the financial markets to a no-risk annuity with guaranteed income would not be in my best interest?

I know that financial advisers who recommend an annuity may receive a typical commission of about 6 percent when the annuity is purchased and the annuity is likely to be kept for about 18 years until retirement income is needed. Financial advisers who are paid by fees might charge me 1 percent a year for the same 18 years.

How can 6 percent be a conflict of interest when I could be paying 18 percent? If my savings are $40,000, the DOL wants me to pay $7,200 in fees directly from my savings. Since annuity commission is paid by the insurance company for all sales of a particular product, I am pooling my expense with others and end up paying around $1,200.

The DOL is asking retirement savers to spend six times more. How is that possibly in my best interest? Please stop this now and make sure that others like me will not have to pay and pay and pay because the Department of Labor doesn't understand what really is in my best interest.

Daniel Fisher

Northbrook