Washington, D.C. — Joe Valenti, director of consumer finance at the Center for American Progress, released the following statement today after the Nevada Senate and Assembly both passed legislation requiring that all financial advisers put their clients’ interests first:
For all Nevadans—and especially the more than 422,000 residents age 65 or older—the threat of financial insecurity is all too real. Savers often seek advice from trusted financial professionals, but for far too long, loopholes have created a lack of accountability. When conflicted sales pitches are conflated with impartial financial advice, investors and retirees ultimately pay more at a minimum, and at worst, find themselves in faulty investments that leave them far worse off than before.
According to the IRS, Nevada residents contributed nearly $86 million to IRAs and received $8.2 billion in income from pensions, annuities, and retirement accounts in 2014. Expensive, conflicted advice drains millions of dollars from these investments toward fees and commissions rather than Nevadans’ financial security.
These stakes are particularly high. Earlier this week, the U.S. Department of Labor announced that it would proceed with implementation of its long-awaited fiduciary rule while signaling a continued intent to repeal or revise the rule in the future. Nevada Senate Bill 383 would ensure that no matter the outcome of the Trump administration’s attempts to undermine retirement security, Nevadans will be able to trust the advice they receive from financial professionals.
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For more information or to speak with an expert, contact Allison Preiss at [email protected] or 202.478.6331.