NAIFA Contributes to Congressional Briefing on DOL Proposal

NAIFA President-Elect Paul Dougherty made his third appearance on Capitol Hill on Oct. 29, to keep Congress informed on the crucial role advisors play helping Americans save for retirement. The highly attended and publicized staff briefing targeted the congressional offices of members elected since the Department of Labor’s 2010 fiduciary proposal. The purpose of the briefing was to ensure new members of Congress know the magnitude of the proposal's impact on low- and middle-income retirement savers and small businesses.  
 
Dougherty was at his best and explicitly described the clients of NAIFA members and how they would be affected by the rule. “NAIFA members help ordinary Americans from every congressional district in the country save for retirement; most of my clients are low and middle-income savers with an average account balance of $6,500," he said. "The proposed fiduciary rule will hurt those it intends to help."
 
Dougherty said NAIFA members primarily serve Main Street investors, not Wall Street. He and his colleagues love what they do, because they help people plan for a secure financial future. Dougherty described the difficulties he would have if the DOL rule is enacted as written, as he would not be able to help employers set up 401(k) plans unless he charged fees. His particular company does not allow agents to charge fees for service. Also, employers and plan participants prefer and are better served under a commission arrangement if they have modest account balances, he explained.
 
NAIFA continues to be relentless in seeking congressional action to protect access to affordable advice for all retirement savers, and remains actively engaged in crafting a legislative solution to the DOL rule.


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