New Push by President Obama Will Help Protect Your Retirement Savings

in Retirement Planning by

As I’m sure most of you have heard by now, President Obama, along with Secretary of Labor Tom Perez, yesterday announced a push to protect Americans saving for retirement by requiring all brokers dealing with retirement accounts to abide by the fiduciary standard.

What does this mean? Being a fiduciary, like all of our financial advisers here at Personal Capital, means that we must act in the best interest of our clients. Currently, brokers only operate under the suitability standard, meaning they give advice that is “suitable” for their clients, which doesn’t necessarily always mean that it will be what is best for the client. And unfortunately, it is often the case that a broker recommends something that is in their best interest and not the client’s.

The action that President Obama and Secretary Perez have taken on advancing this rule is an important step in protecting the retirement savings for tens of millions of Americans.

Watch the video below to learn more about conflicts of interest and how to best protect your retirement savings:

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2 comments

  1. Gary Horowitz

    Its a shame that the President is forgetting some older people that have retired from their employment
    or are elderly . The interest rates as they are now forget about people older than age 55 and allow them an ability to use interest rates on savings and retirement one time final work payments . These people are left with such low interest rates that they are not able to give themselves or families a chance to live decently.
    The answer appears to be simple. Give people over 55 the ability to get an increased interest rate on savings accounts and final work payouts! The elderly and their families have been left to starve by the
    current rates. Because they are most in need of some answer to this problem, I suggest something. Increase
    interest rates for people over 55 to a much higher rate. That will allow elderly people and their families a chance to finally be given a way to survive in this economy instead of starvation which they have been
    left with by the Federal Government I know the first thought would be that this would cause inflation. So
    what! These elderly people will finally be given a chance to make money that will pay their bills.
    Gary Horowitz Milwaukee Wisconsin

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    Reply
  2. Paul Pruitt

    I do not understand your desire to reward folks that failed to save and invest throughout their lives. I have watched my coworkers begin at about 55 to worry about having the funds for retirement . At that point in time they had a few thousand in the bank, had never contributed to the 401K at work and only thought about an IRA on April 15th each year. Even giving them 50% interest on their savings is not going to solve their problems. Most thought their Social Security check would equal their pay checks until they did some homework and still didn’t deduct the medicare fees which will be 2-3 x their projections because they have houses, cars, boats, and many other toys that boost networth but not net capital. Perhaps the largest thing Uncle Sam could do is to standardize the Medicare payment to a fixed amount for all, giving the newly retirees a chance to learn to live on a much reduced income.

    Reply

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