Congress Has a Dangerous Idea for Your 401(k)
Granted, it’s possible that 401(k) providers will work with insurance companies to offer annuities with genuinely transparent, predictable streams of retirement income. The providers’ fiduciary duty should hold them to a higher standard than the insurance agents who typically peddle the worst products. Yet given 401(k) plans’ mediocre track record, coupled with the insurance industry’s long track record of selling inappropriate products, I wouldn’t bet on it.
Why would legislators expose savers to such risks? I won’t speculate, but I will note one potentially relevant fact: Over the past 30 years, according to OpenSecrets.org, people and entities associated with three organizations -- Mass Mutual Life Insurance, FMR (the parent company of Fidelity Investments) and the National Association of Insurance and Financial Advisors -- have collectively been the largest donors to Congressman Richard Neal, who introduced the legislation in the House.
https://finance.yahoo.com/news/congr...110009103.html
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