Tags: retirement | savings | nest | egg | fake | news | conflicts

Retirement Savers Lose $17B a Year: 5 Tips to Safeguard Your Nest Egg

retired old man holding a piggy bank, looking very serious and possessive of his savings, isolated on a white background

By    |   Monday, 22 October 2018 05:03 PM

Forbes.com contributor Ron Carson recently offered five simple tips to avoid losing your hard-earned retirement savings to a dangerous mix of fake news and/or conflicts of interest.

Carson, founder and CEO of Inc. 5000 firm Carson Group, cited data from the Economic Policy Institute that concluded that every year, retirement savers lose $17 billion acting on advice from financial advisers who have conflicts of interest.

He offered on Forbes.com a five-point checklist to “ensure your adviser is committed to full transparency in your relationship and not a purveyor of fake news when it comes to the value you receive.”

Caron’s “five simple ways to get the unbridled truth”:

  1. Understand your fees. Ask your adviser to explain how they are compensated
  2. Understand your adviser’s business structure. Carson suggests you determine if "your adviser responsible for their own oversight or are there other third parties helping support the business (and in what way)?"
  3. Use BrokerCheck for adviser background. This free service allows you to see an unfiltered view into your adviser’s history and any legal history or dispute with the firm, Carson explained.
  4. Ask about advisory councils. "Does your adviser host annual or semi-annual client meetings which provide an opportunity for everyone to give feedback and comment on every aspect of the firm’s offering and service level? How is the firm sharing those take-aways and incorporating feedback into processes, behaviors, and services?" Carson asks.
  5. Tap into tech. "Does your adviser provide you with an amazingly effortless online experience to access all accounts and adviser activity?" Carson asks. "If you sense hesitation or hear excuses, it’s potentially a sign they aren’t comfortable with the full window of transparency technology can provide into account history, servicing, fees, and accountability. Advisors who are investing in tech, are investing in you."

To be sure, anything and everything to do with entitlement programs and retirement is seemingly always making headlines and give senior citizens just one more worry to stay awake at night.

SEC Commissioner Kara Stein reportedly has warned that “the retirement crisis is a tsunami that is rapidly approaching.”

Stein spoke to the Brookings Institution on Tuesday, giving a talk titled "The New American Dream: Retirement Security," Forbes.com reported.

“We’ve moved from a collective retirement system to one in which each person is expected to go it alone,” Stein said at the Brookings Institution this week in a speech "The New American Dream: Retirement Security."

“The retirement crisis is a tsunami that is rapidly approaching. We can already see it and, indeed, we are starting to feel its effects. Americans are having to work past traditional retirement age,” Stein said.

“And the number of bankruptcies for those over the age of 65 has increased dramatically. The size and speed of the tsunami is likely to increase as it gets closer and closer to us. Our population is aging and the cost of medical care—an important factor for retirees—is increasing. We must address this problem before we are collectively underwater,” Stein said.

Stein also addressed the need for improved financial education, and suggested the SEC might create a model curriculum for schools, create spelling bee-like contests, and create an app, for instance, Forbes.com reported.

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Forbes.com contributor Ron Carson recently offered five simple tips to avoid losing your hard-earned retirement savings to a dangerous mix of fake news and/or conflicts of interest.
retirement, savings, nest, egg, fake, news, conflicts
Monday, 22 October 2018 05:03 PM
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