Millions of Americans are counting on their 401(k) and retirement accounts for a secure financial future, and I’m counting on our members of Congress to oppose any effort that would prevent the Department of Labor from closing a loophole that allows unscrupulous financial planners to play with your hard-earned money for their benefit.
The Department of Labor is finalizing a new rule that would close the loophole and hold all financial advisers accountable for giving you the best possible retirement advice that meets your needs.
Why? Because it’s a multi-billion-dollar problem for people who work hard and save for retirement.
More than $17 billion in retirement savings is lost yearly due to unscrupulous financial advisers, who push products that are good for their bottom line, not yours. The Department of Labor has proposed a new fiduciary rule for all financial professionals who provide retirement plan investment advice. They would be required to adhere to standards that are in the best interest of their clients.
This conflict of interest loophole can result in typical savers losing about 25 percent of their hard-earned retirement savings over their lifetime.
But instead of supporting this Department of Labor rule, some members of Congress have worked to slow down the process.
We expect the final rule to be very soon. As this comes down to the wire, I’m calling on Sen. Martin Heinrich and Sen. Tom Udall, and Rep. Michelle Lujan Grisham, Rep. Ben Ray Lujan and Rep. Steve Pearce to support consumers by supporting the closure of the loophole.
Traditional pension plans are dying, and more workers are expected to save and rely on their own investments in the private markets to achieve adequate and secure retirement income.
The public assumes compensated financial professionals work for them. While most are reliable, a few are out to line their own pockets and the difference takes more money than necessary out of your pockets. We should be able to trust our financial advisers to put our interests first.
An analysis by the Department of Labor shows that a retirement saver who moves money out of a 401(k) plan and into an IRA – based on conflicted advice – can expect to lose 12 percent to 24 percent of the value of his or her savings over 30 years.
Retirees can’t afford investment advice that can cost them thousands of dollars, or more, over time because they need to make every dollar count when they can no longer work.
With more than $12 trillion in retirement savings at stake, there’s no time to waste. We must stop Wall Street, and their supporters in Congress, from allowing bad players to line their own pockets with our hard-earned savings.