Riled Retirees Rue Regulation Rollback!
Update 2/24 Administration kicks the consumer protection can down the road, delaying Fiduciary Rule implementation until after further “review.” Read that: so maybe fewer people will be paying attention when they kill it. The AARP is all over it here….
It was a nice idea while it lasted.
Managing your money in retirement is a monumental challenge. You’ve worked hard throughout your adult life and saved faithfully, knowing that you’ll need to be cautious and vigilant if you hope to have your money last as long as you do. Maybe you use a financial planner to advise you on the best investments. But how do you know the mutual funds, stocks, bonds or real estate choices you’re being offered are really the best ones available, and not just the ones that make the advisor the most commissions? (No) thanks to the new resident at 1600 Pennsylvania Ave, you don’t.
An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s benefit. – The Free Dictionary
As of today, with the stroke of the President’s pen, an Obama administration regulation that for the past year has protected seniors and other retirees, has been trashed. With $17 billion dollars being scammed from seniors each year, it’s hard to see how this isn’t just a gift to Wall Street of your hard-earned dollars. This article from the Huffington Post explains just what has been done to undermine your protections:
Oversight Is for Losers: Crony Capitalism Alive and Well in Washington, DC
WASHINGTON ― One of the Donald Trump administration’s first orders of business on the economy will scuttle a rule protecting retirees from being scammed out of $17 billion a year by their own financial advisers.
The Obama administration approved the regulation last year. The rule established a “fiduciary duty” for money managers, requiring them to operate retirement accounts in the best interests of their clients. The Trump team’s repeal will allow financial professionals to steer retirees into expensive or poor-performing products that carry economic benefits and perks for the advisers and their firms, without disclosing such conflicts of interest. Read more….
I wish there was a silver lining here to share, but the obvious conclusion is that this administration is siding with Wall Street over the best interests of some of this country’s most vulnerable citizens. I’m only partly joking when I say that stashing your money under the mattress is starting to look like a viable option.