Millions of Americans save for retirement using a 401(k), but how do they know if they are making the best investment decisions. We may not all be Warren Buffet, but we all want someone like him advising us on how to best invest our retirement savings.
However, the law does not hold all financial professionals accountable. Some, like Certified Financial Planners, must act only in your best interest. They can only do what they think will benefit you the most. Others, like brokers, can do what’s best for themselves. They can recommend plans with hidden fees, risky investments, and low returns. As a result, they can get paid more, even though you could lose years of retirement savings.
Now most financial professionals already do the right thing, but the fact is, they don’t have to. When there’s a conflict of interest, your adviser can always choose their paycheck over your savings.
AARP supports a new proposed Department of Labor rule requiring all financial advisers to act in our best interest. Everyone on Wall Street should play by the same rules. We worked hard for our money. The law should protect it.