(Complete Show Notes Below)
In the 35th episode of the Financial Procast:
We Discuss the PBS Frontline Special “The Retirement Gamble”
If you haven't seen this short special/documentary, here's a short preview and a link below the preview that will take you directly to the Frontline page on the PBS website where you can watch the epidsode in its entirety–don't worry it's less than an hour long and it's worth your time.
Since we don't have a full transcript of our audio, here's a timestamped rundown of the show:
05:14–Are Financial Advisors/financial planners/insurance agents/financial consultants/brokers screwing Americans out of a comfortable retirement?
10:30–401k plans have been shrouded in mystery for years in regards to their fees, charges and expenses. Legislation seeks to solve that problem.
12:43–Is this the Jack Bogle show? The documentary spends a great deal of time talking with Jack and about his crusade to bring low fee mutual funds to Americans.
13:30–We channel Mr. Bogle in our approach to the life insurance industry. (insert chuckle)
14:15–The investment industry pretends as though they've never heard the research that indexing may be a cheaper alternative to actively managed funds. Christine Marks, president of retirement products at Prudential, seems as thought she's hearing this argument for the first time and that she's never seen the research. Where has she been for the last 30 or 40 years?
19:50–What the investment executives should have said when cornered about their actively managed mutual funds.
23:08–We point out that Jack Bogle has done some great work but he ain't working for free either.
29:45–Why are 401k plans so inadequate? Including a real-life example.
34:50–It seems some “financial advisors” were not pleased by the documentart–shocker right? George P. Fraser of Retirement Benefits Group, LLC was very much offended–see a quote from him over at Investment News.
40:00–Brandon discusses the core problems of the retirement planning industry. Are we offended or do we think the Frontline special go it right?
42:18–We lay out a plan to make sure you don't get taken advantage of.
44:18–The fiduciary vs. suitability standard…which is better?
50:00–Why sales prospecting causes inherent problems for the investment industry. The pain of prospecting can cause problems that don't align the values of advisers and their clients.
51:51–Do consumers have any responsibility in the retirement mess? People have to save more, spend less and work longer…a bitter pill.
57:47–Do we believe that there is a tendency for Wall Street to exacerbate the problem? Are people investing in the markets that have no business doing so? The artificially high illustrations of the average rates of return cause people to save far less than they should. People need to use a much more conservative rate when projecting how much they need to save.
We hope enjoyed this episode and we'll head over to itunes to let us know how much you've enjoyed it!