The title of this blog borrows from a headline from a June 22 New York Times article about the end of the investor protection rule. Commenting on the new regulation which knocks the wind out of the Dodd-Frank sails, Micah Hauptman, financial services counsel to the Consumer Federation of America said: “This is a terrible day for retirement savers.”
In addition to the demise of the fiduciary rule, we are just ending a period of the lowest interest returns on savings in the memory of anybody alive. Those saving for retirement have been swindled ever since the financial crisis of a decade ago.
Earlier generations encouraged saving and the system rewarded it; personal debt was frowned upon. In Hamlet, Polonius advises his son Laertes, “Neither a borrower nor a lender be…” In Aramaic, the language which Jesus spoke, the word for “debt” and “sin” is the same. “The borrower is servant to the lender” says Proverbs, Chapter 22 Verse 7.
Today, in addition to being ripped off, lenders must contend with lower fiduciary standards coupled with the high-risk environment of Wall Street. Our January 29, 2018 blog dealing with fiduciary responsibility is worth reviewing at this point.
A Harvard Business Review article published on March 14, 2012, estimated that 10% of people in the financial services industry are psychopaths. A Wall Street psychotherapist feels that to be a conservative estimate. Countless Bernie Madoffs or Bernie Madoff wannabes!
AARP (formerly American Association of Retired Persons) recently stated: “At stake are the billions of dollars each year that retirement investors lose because of hidden fees and bad advice.”
The above material is getting and has been getting much press. How does it affect Monday Morning Millionaire Program members?
The End of The Investor Protection Act & Saving for Retirement