When you pay a financial adviser to help you invest your hard-earned retirement savings, you would assume that they would be required, by law, to have your best interests at heart. But because of loopholes in the rules, advisers can get away with not only putting their own financial interests above that of their clients, but also allows them to take incentives from Wall Street firms to recommend investments that drain funds from ordinary Americans’ retirement accounts through hidden fees and lower returns. The White House Council of Economic Advisers says this costs us $17 billion a year.
The Obama administration today took the first step to close a loophole in the rules that govern Wall Street brokers and financial firms that provide retirement investment advice. That loophole can drain away thousands, or even tens of thousands, of dollars of hard-earned savings from a single retirement account.
There is a loophole in the rules that govern Wall Street brokers and financial firms that provide retirement investment advice that can drain away thousands, or even tens of thousands, of dollars of hard-earned savings from a single retirement account. Today, a coalition of senior, union and consumer groups launched a new website—SaveOurRetirement.org—to mobilize support to close the “Retirement Advice Loophole” through a new rule the U.S. Department of Labor is trying to adopt.
A new report from the National Academy of Social Insurance, Americans Make Hard Choices on Social Security, takes a comprehensive look at public attitudes about the nation's retirement security program and finds broad support both for the program and for commonsense solutions to strengthen and expand the program in future years.
Most all of us know someone—or may even be someone—who worries about having enough economic strength through savings, pensions, Social Security, health insurance and other resources to retire. When the paychecks stop coming in we don’t want to rely on help from our families, drastic cuts in spending or be forced back to work.
In our new regular weekly feature, we'll be taking a look at the winners and losers of the week in the struggle for the rights of working families. The winner will be the person or organization that goes above and beyond to expand or protect the rights of working families, while the loser will be whoever went above and beyond to limit or deny those rights.
President Barack Obama will give his annual State of the Union address to the American people next week. But what is the state of our union? The vast majority of America's working families have experienced a raw deal in recent decades. Wages are falling, the gulf between the rich and everybody else is growing larger, we have a shrinking middle class and too many working families with no access to the American Dream.
What's the state of your union? Share your ideas with us to be featured in the blog by texting SOTU to 235246 (standard data & message rates may apply).
We've heard of the looming retirement security crisis, but this statistic is extremely sobering: The majority of black and Latino workers (62% and 69%, respectively) do not own assets in a retirement account. This is from a new report by the National Institute on Retirement Security released this week.