Feb 03, 2017, 18:22 ET
SILICON VALLEY, Calif., Feb. 3, 2017 /PRNewswire/ -- The White House National Economic Council Director Gary Cohn said this about the Fiduciary Rule in an interview with the Wall Street Journal on Thursday: "We think it is a bad rule. It is a bad rule for consumers. This is like putting only healthy food on the menu because unhealthy food tastes good but you still shouldn't eat it because you might die younger."
"Encouraging people to die younger is one way to solve our retirement crisis," said Bill Harris, CEO of Personal Capital. "But we think a better way is to encourage people to save responsibly and invest well, so they're able to live a long life in financial security."
The Fiduciary Rule is a rule developed by the Department of Labor, which has jurisdiction over retirement accounts, over many years with the input of most of the major financial institutions in the country. It requires providers of retirement accounts to act in the best interest of their customers, rather than the best interest of the brokers and brokerage firms.
"It's inarguable that we should act in the best interest of our customers," said Harris. "And, unsurprisingly, that's what customers want, too! An overwhelming majority of the 1.3 million registered users of our financial advisory software and services that we've spoken to express a vital interest in being treated this way."
"Underfunded retirement is the most serious financial disaster waiting to befall both current and future retirees and the nation itself, because the burden to support people in retirement will ultimately fall on all of us as taxpayers," said Personal Capital Vice Chairman Mark Goines. "And it's tragic that providers of retirement accounts, who benefit from tax advantages bestowed by Congress to encourage retirement savings, so often charge high fees and put participants in inappropriate investments for the benefit of their own bottom lines."
Personal Capital already is and always has been a fiduciary of its customers' money. The firm offers the leading personal finance management and financial planning software for free to anyone with an Internet connection or mobile phone, available at personalcapital.com on the web and on the Personal Capital app for iPhone, iPad and Android. Importantly, it also offers human advice deeply integrated with best-in-class financial software. Personal Capital's mission is simple: "Better financial lives through technology and people."
About Personal Capital
Personal Capital is the smart way to track and manage your financial life. Personal Capital combines award-winning online financial tools that provide unprecedented transparency into your finances with personal attention from licensed financial advisors. The result is a complete transformation in the way you understand, manage and grow your net worth.
Marianne Ahlmann | Personal Capital | [email protected]
SOURCE Personal Capital
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