Obama Fights Retirement Crisis with Plans to Protect Retirement Accounts

Despite opposition from the Republican Party, President Obama addresses his plans to enforce regulations that protect retirement accounts and ensure the ethical business practices of retirement advisers.

Palm Springs, CA – March 8, 2015 /MM-LC/ —

In a speech to the AARP in February of this year, President Obama declared his plans to create new legislations to protect retirement savings accounts.

Mr. Obama asserted, “Right now, there are no uniform rules of the road that require retirement advisers to act in the best interests of their clients, and that’s hurting millions of working and middle class families…There are a lot of very fine financial advisers out there, but there are also financial advisers who receive backdoor payments or hidden fees for steering people into bad retirement investments that have high fees and low returns.”

The middle class overall seems to be the population most affected by changes in the economy in recent years. Per New York Times’ findings, “most families earning $40,000 or $90,000 a year have received smaller raises in recent years.” Additionally, a BBC study reports that middle-class parents worry about paying for children’s education, stating that even “parents who earn as much as $150,000 struggle to pay for their children to attend college because tuition has been surging in the US for years, rising faster than incomes and financial aid.”

During a recent Silicon Valley event, Hillary Rodham Clinton stated the importance of finding a way “to make this new economy work for everyone.” Clinton shared, “The old jobs and careers are either gone or unrecognizable…The old rules just don’t seem to apply, and, frankly, the new rules just aren’t that clear.”

As part of the initiative to protect retirement accounts, the President seeks to prevent advisors from convincing clients to invest in funds that have higher fees and ultimately offer a lower return on investment. The proposed plan has already met with opposition by those in the Republican Party.

Andrew Hansen, Financial Advisor and Founder of Hansen Financial & Insurance Services, LLC, a firm serving both Palm Springs and the Inland Empire, has observed the handling of accounts in the industry with growing concern. Hansen states, “The middle class already faces enough pressures. With so many social services available for those with lower income and the many perks and benefits available for the upper class, the middle class is often neglected. This group—and all groups, for that matter—have a right to receive unbiased help. There are many companies out there that have quotas, which is the wrong approach. This type of thinking doesn’t help clients in the end, and is bad business. The goal should be to help the client and not the investment company CEO.“

According to a New York Times’ report, under the Labor Department’s proposed rules, “retirement advisers would have to put their customers’ interests ahead of their own, an obligation known as a ‘fiduciary duty’.” Although the regulations will most likely face more opposition, if implemented, the new rules could have a significant impact on those nearing retirement and the middle class as a whole.

For more information about us, please visit http://www.hansen-financial.com

Contact Info:
Name: Andrew Hansen, Financial Advisor and Founder
Organization: Hansen Financial & Insurance Services, LLC
Phone: 760-327-8877

Source: http://councilofeliteadvisors.com/liftmedia

Release ID: 76483