Thursday, September 29, 2011

What is the "cost" of not using retirement advice?

A new study by Aon Hewitt and Financial Engines found that investors who relied on professional advice to manage their 401ks saw returns "almost 3% higher than those who did not."

This is an interesting study that comes just weeks after the Department of Labor withdrew its fiduciary rule. Many members of Congress, financial professionals and consumer advocates where concerned that this rule would force broker-dealers out of the IRA market and create a situation where small savers who invest below the thresholds for registered investment advisors had to "go it alone" in managing their IRAs. Read more here.

The Hewitt study is a reminder that access to financial professionals matters.