November 19, 2015
A New Threat to Your Retirement
New York Times, Teresa Tritch
In April, the Labor Department proposed an important rule designed to protect Americans’ retirement savings by requiring advisers to act in their clients’ best interests — and not their own. As things stand now, brokers, insurance agents and other salespeople — who often call themselves “consultants” or “advisers” — are allowed to steer clients into high-priced products and strategies when comparable and cheaper ones are available. … The idea of imposing a “best interest” standard on retirement advisers should not be controversial. … Under the Labor Department’s approach, billions of dollars a year that now flow to banks, brokerages and insurers would stay in savers’ accounts. Under the approach of Mr. Neal, Mr. Roskam and company, the financial industry could continue to pocket those billions — minus whatever amount they donate to the campaigns of lawmakers who do their bidding. President Obama should commit now to veto any attempt to derail the best-interest rule. Getting fleeced should not be the price one has to pay for retirement advice.
Read full New York Times article by Teresa Tritch here.