President Barack Obama endorsed Labor’s plan in February, putting new momentum behind the effort to revise rules that affect tens of millions of baby boomers nearing retirement age and workers who don’t have pension plans.
Risky Investments
The new protections would save investors $40 billion in fees over 10 years, according to the Labor Department. At present, brokers face a less-stringent suitability standard that requires investments fit a clients’ needs and risk tolerance.
Financial-industry lobbyists have argued that costlier regulations could take options away for smaller investors.
Annuities -- typically sold by insurance companies -- are investments that guarantee specific returns over time. People tend to buy them to ensure they have a steady source of income after they retire.
At the same time, investor advocates have warned for years that some annuities carry high fees and big penalties for early withdrawals that make them risky investments for people nearing the end of their lives.
Warren also planned to send the letters to Allianz SE’s U.S. division, TIAA-CREF, New York Life Insurance Co., Prudential Financial Inc., Aegon NV’s Transamerica, Axa SA’s U.S. unit, MetLife Inc., Nationwide Mutual Insurance Co., Pacific Life Insurance Co., Forethought Financial Group Inc., Riversource Life Insurance Co. and Security Benefit Life Insurance Co.
She is a member of the Senate Banking Committee, which plans to hold a Tuesday hearing on insurance regulation.
Sen. Elizabeth Warren Targets Broker Annuity Perks To Build Support For Fiduciary Rule
April 28, 2015
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Comments
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wow... I just got a neat little booklet that has sign here stickey-notes from AIG for using them for a small annuity. I must have missed my car lease somehow? This is why Elizabeth Warren is an idiot. How in the hell can she be in charge of anything financially related when she is that out of touch with reality? Only in government does stupidity get rewarded.
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Congress needs to list its perks private plans and ability to assign thier own wages and pensions and insurance oh yeah they get to keep thier own campaign war chest not to mention they are always innocent like people in jail except they are exempt from prosecution.
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Campaign finance renders the US, at best, a quasi-democracy like Iran, USSR, Hong Kong. Watch Mr. Lessig explain http://goo.gl/3FFLAi Support those few that will help to change the system.
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Sen. Warren must have gotten her info from a retired FA. As far as I know, these type of perks haven't been around for over 15 years. I believe she is an incredibly smart individual but a grandstanding politician
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Geez, all I ever get is note pads and pens. Sen. Warren seems to confuse anecdotal myths with reality.
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Does Sen. Warren put her own interests ahead of others when her work benefits campaign donors more than other constituents who did not donate? I think campaign donations "encourage" that sort of behavior. I'm going to send letters and find out.