Opinion/Editorial provided by:
Juli McNeely, NAIFA President & Owner/President at McNeely Financial Services, Inc.
The Obama administration is preparing to re-propose a Department of Labor rule to redefine which financial advisors must act as fiduciaries when providing advice to retirement investors. While the proposal is not yet public, all indications are that it will be hostile to many NAIFA members and the middle-class clients they serve.
In advance of publically proposing the rule, the administration has begun to soften the beaches with what certainly looks like a scare-mongering campaign. In a speech delivered at AARP headquarters, President Obama stated that some financial professionals are “selling snake oil” and bilking their retirement clients out of billions of dollars per year. By implication, he zeroed in on advisors who receive commissions as compensation.
NAIFA rejects this argument outright, as numerous studies show that consumers who receive professional financial advice grow their retirement savings faster than those who go it on their own. There are myriad laws and regulations already on the books protecting consumers from fraud and inappropriate practices. The products and services provided by NAIFA members and their colleagues have helped tens of millions of American families obtain financial security and maintain needed income throughout their retirement years.
For Financial Professional Use Only.