Protect our 401(k)'s, Pursue Financial Reform

The Nation recently published an article describing how the financial services industry is pulling out all the stops to prevent Congress from holding them accountable for the work they perform managing your 401(k).   

Few people know this, but nearly 85% of financial advisors do not work as “fiduciary agents” and are not legally obliged to maximize their clients’ assets. As a result, many steer their clients’ money towards funds that perform poorly or have high fees so they can gain commissions.

Some firms actually market this fact to woo customers to their services. To paraphrase:  “Most companies will try to screw you over. The titles their employees use are essentially meaningless, designed to cultivate your trust, not to convey expertise. Invest with us. We actually follow the laws designed to keep your interests safe.”  

Is it any wonder that Americans find it so hard to save and invest enough money to support themselves in retirement? They’re fighting against people who actively profit from having their portfolio perform poorly. The fees alone can cost the average person $100,000 over the lifetime of a 401(k). Imagine how many bills that would pay, and what it would mean to someone living on fixed income.        

We should not tolerate this blatant conflict of interest in such a vital sector of our economy. The future of our retirement funds depends on it, and groups like the AARP and the Consumer Federation of America are fighting it tooth and nail. In particular, they’re pushing back against the misleadingly named H.R. 2374, the Retail Investor Protection Act, which prevents government agencies from effectively regulating financial service companies.  It’s time we join in and write to our Congressman to combat such abusive behavior.

https://paulsenforms.house.gov/contact-me

http://www.klobuchar.senate.gov/emailamy.cfm

http://www.franken.senate.gov/?p=email_al