Obama is a whiz at fiances, the government is operating in the black.
Via The State
President Barack Obama will head to the AARP Monday afternoon to announce a change in policies affecting retirement accounts — part of a series of moves the White House says is aimed at boosting the middle class.
Obama will call on the Department of Labor to develop a rule that would require retirement advisers to abide by a “fiduciary” standard — mandating that they put their clients’ interest ahead of making a profit.
Unlike doctors or lawyers, financial advisers are not obligated to look out for their clients’ best interests, said Labor Secretary Tom Perez. He said the change would modernize a 40-year-old rule.
“Consumers deserve to know that their adviser is working for them,” he said. Currently, advisers recommendations for retirement plans, including 401(k) plans, must be considered “suitable” but the White House says that can mean high costs and low returns. A report by the White House Council of Economic Advisers estimates that conflicts of interest cost middle-class families who receive “conflicted advice” an average of 1 percentage point lower annual returns on retirement savings. It estimates the losses at $17 billion a year.