Retirement advice should be in your best interest

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People face a lot of challenges when they try to save for retirement, but one of the biggest challenges lurks mostly out of sight.

How do you know when a retirement advisor or broker is doing what’s best for you, and how do you know when they are just doing what’s best for them?

Many retirement advisors recommend investments that work best for the customers they work for. But some don’t. Those advisors and brokers recommend investments based on what’s best for them – and what fees, bonuses, free vacations, cars, and other kickbacks the advisor can earn from selling a lousy product.

Today I joined President Obama and Labor Secretary Tom Perez to call for more transparency and stronger rules to make sure the retirement advice you receive is always in your best interest. Join us in saying that it’s time to fix this broken system.

Numerous studies, including some from Harvard and MIT, have found that some advisors consistently steer customers to the highest fee products – despite the fact that high fee funds don’t perform any better, and often perform worse, than low fee funds. And the worst part? For large portions of the retirement market, it’s perfectly legal to push these lousy investment products.

That makes it really tough for unsuspecting customers who could lose thousands – or hundreds of thousands – of dollars in retirement savings when they fall into the hands of the wrong advisor.

And it makes it really tough for the thousands of honest advisors and brokers who already put their clients first. Right now they have to compete against the unethical advisors who don’t. That’s not a level playing field – it’s a broken system.

Today, we begin to fix it. Today, we begin to stand up for the millions who are trying to set aside some money for a decent retirement. And today, we begin to stand up for the honest retirement advisors who are working hard to help them.

Join President Obama and me in saying it’s time to do what we should have done years ago: it’s time to end the bonuses, the fees, the free vacations, the fancy cars, and the other incentives to sell bad products to unsuspecting customers – and to ensure that all of our retirement advisors, not just some of them, are looking out for the best interests of the people they serve.