No announcement yet.

"AIG says if the government won't let them screw over retirees.."

  • Filter
  • Time
  • Show
Clear All
new posts

  • "AIG says if the government won't let them screw over retirees.."

    "...the broker-dealer network earned about $40 million in 2014, yet consumed a "disproportionate amount" of AIG's compliance cost....

    "A White House Council of Economic Advisers analysis found that these conflicts of interest result in annual losses of about 1 percentage point for affected investors—or about $17 billion per year in total. To demonstrate how small differences can add up: A 1 percentage point lower return could reduce your savings by more than a quarter over 35 years. In other words, instead of a $10,000 retirement investment growing to more than $38,000 over that period after adjusting for inflation, it would be just over $27,500...

    "That's $10,500 per investor that AIG can't live without, apparently. The thing is, the rule doesn't even necessarily preclude brokers from earning the commissions—they just have to disclose to investors the fees and incentives they're getting that might influence their investment recommendations. They can still get those commissions and those incentives, they just can't keep it a secret. And that's the end of the world for them."