If you are like most Americans, you’re facing difficult questions about how to save for a decent retirement, such as—
Thanks to loopholes in the rules that govern advice about retirement investing, banks, brokers, mutual fund companies, and insurance agents are able to portray themselves as trusted advisers while acting as self-interested salespeople.
They can recommend investments with higher fees, riskier features, and lower returns because they earn more money, even if those investments are not the best choice for you. That means that the financial professionals you turn to for advice can end up costing you many thousands of dollars in lost retirement savings.
Without ever bothering to check on your financial situation, “advisers” may recommend that you roll over your 401(k) savings into an IRA where in fact the investment expenses you pay are higher than those in your 401(k).
“Advisers” may recommend that you invest your IRA in a variable annuity that charges high fees, locks up your money for years, and provides no tax benefits beyond what your IRA already offers.
Or, in a variety of other ways, “advisers” may recommend investments that pay them more but force you to pay unnecessary costs, face unnecessary risks, or accept unnecessarily low returns on your investments.
Because even small differences in costs add up over time, you could lose tens or even hundreds of thousands of dollars in retirement income as a result.
More and more Americans are being hurt by the “Retirement Advice Loophole.” It’s not just workers in their prime earning years. Every day, 10,000 Americans reach the age of 65. And older Americans are especially vulnerable to lost savings from bad investment advice, because for them it’s almost impossible to make up for those losses.