Working people saving for retirement are losing billions

 

The fiduciary rule is an Obama-era regulation that protects Americans’ hard-earned retirement savings by requiring that financial professionals offering retirement investment advice put their clients’ interests first. The rule was supposed to be implemented on April 10, 2017. But the Trump administration has repeatedly delayed enforcement of the rule, most recently to July 1, 2019, and is using the rule-making process and delays to significantly weaken the rule.

Because of the enforcement delays, industry actors presenting themselves as neutral advisers can continue to steer retirement savers to products with high fees and commissions that benefit the advisers but reduce net returns for the client. The map shows the annual costs retirement savers in each state incur due to underperforming IRA assets that are invested in products for which savers received “conflicted” advice (that is, advice provided by financial advisers whose earnings depend on the actions taken by the client).1

EPI has used the data on annual losses to retirement savers from conflicted advice to estimate that an August 2017 Department of Labor directive delaying the rule for 18 months, to July 1, 2019, would cost workers saving for retirement $10.9 billion dollars over the next 30 years.

1. Underperformance of investment returns in which savers received conflicted advice can be attributed to a wide range of factors, including high fees, high trading costs, poor market timing, and increased risk exposure without increased returns.

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Reposted from EPI

Posted In: Allied Approaches

Union Matters

The Clock is Ticking, Mr. President

Richard Cucarese
USW Local 4889

There was a time during the history of America that our elected officials did their best to act expeditiously on the behalf of their constituents when it came to dealing with the ‘hot button’ issues of the day.

But over the past few decades especially, the most important issues seem to be pushed aside in the interest of partisan politics and media posturing while the proletariat suffers under the weight of indecision.  Within this framework of political grandstanding, the Section 232 cases for the steel and aluminum industries are no exception.

Contending these measures that would help save the industries and create jobs in these vitally important sectors, candidate Donald Trump used Section 232 as a dangling carrot to a workforce that has recently become resentful of presidents whom we thought were our allies promising us job security, only to have them deliver a hard slap to the face by decimating our ranks under the guise and false promises of the benefits of Free Trade.

Riding into the White House with not much wiggle room to have a mandate, President Trump still acknowledged that one of his key achievements would be to move along Section 232 expeditiously in the interests of national security due to their level of importance in the military sector and the resurrection of our once-mighty but now-crumbling national infrastructure.

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Delve Deeper for Justice

Delve Deeper for Justice