Financial Advisors Make Money off of Your Poor Investments: Close the Loophole

As difficult as it is in NJ to save for your retirement; the least you deserve is a financial advisor who not only works hard to protect and grow your assets but also puts your interest ahead of theirs. Unfortunately, legal loopholes allow some financial advisers to further their own financial interest instead. They are legally allowed to recommend investments with higher fees, riskier features, and lower returns to make more for them at your expense. Research shows bad advice costs Americans at least $17 billion per year. That can translate into as much as 25% of retirement income or 5 years’ worth of savings.

A proposed Department of Labor rule would raise the standard for all financial advisers - prioritizing customers’ interest above all else. Even though this seems to be the right thing to do, many in the financial services industry strongly oppose it. Their champions in Congress have proposed legislation preventing this rule from taking place. AARP on behalf of its 1.3 million NJ members wants to protect the retirement future of those being ill-served by this loophole, and calls on Congress to reject this legislation, and uphold this critically important rule.