Financial Finesse CEO Liz Davidson Supports Obama Initiative to Minimize Retirement Plan Fees

Financial Wellness Firm Finds Fees to be a Crucial Component of Employees’ Financial Security

Liz Davidson is CEO and founder of the nation's leading provider of unbiased financial wellness programs. (Photo: Business Wire)

EL SEGUNDO, Calif.--()--Financial wellness innovator Liz Davidson, CEO of Financial Finesse, Inc., expressed support for President Obama’s recent comments to the AARP calling for uniform rules that require retirement advisors to act in the best interests of their clients.

“Rules that put retirement investors first balance the existing bias in the retirement plan delivery system,” said Davidson, who founded the unbiased corporate financial wellness industry in 1999. “Retirement saving now falls squarely upon the shoulders of individuals, but their goal of maximizing retirement plan returns does not always line up with the interests of the financial advisors who may be earning commissions.”

Recent research by Financial Finesse shows that employees are woefully under-prepared for retirement. In the firm’s 2014 Generational Research Report which will be released in full March 4th, only about 1 in 6 Generation X and Millennial employees and 3 in 10 Baby Boomer employees have a plan to reach their income replacement goal by the time they retire.

“President Obama’s proposal is representative of the larger trend in society toward a more transparent financial services industry and an emerging corporate focus on employee financial wellness,” added Davidson. “We have seen a shift – many more employers are interested in implementing unbiased financial education programs that improve employees' retirement preparedness.”

Davidson cited her framework for a target "3 percent return advantage,” designed to help investors achieve returns that are on average 3 percent higher per year, over time, than what they would otherwise earn. “Companies can help employees improve their retirement plan returns by as much as 3 percent annually by minimizing fees through offering low cost index funds, as well as encouraging them to follow a consistent asset allocation while taking a long-term approach.”

“Fees matter. According to the 2014 Investment Company Institute Fact Book, retirement plan investors who have access to stock index funds would have paid on the average 1.17 percent per year less in fees than the median equity fund,” Davidson explained. “Over time that really adds up – in a long term scenario the lower fee investor would have a final balance significantly greater than the higher fee investor.”

Davidson is positive that trends are moving in the right direction. “Forward-thinking companies are implementing comprehensive financial wellness programs that help employees reduce financial stress and make wiser retirement planning decisions.” She points to Financial Finesse clients as examples of companies that are using effective programs to enhance their employees’ retirement preparedness.

A former hedge fund manager, Davidson founded Financial Finesse in 1999 to offer comprehensive financial wellness programs that companies implement as an employee benefit. Financial Finesse provides only financial education and coaching, and the firm’s on staff Certified Financial Planner™ professionals do not sell or recommend any financial products.

About Financial Finesse

Financial Finesse is an unbiased financial education company providing personalized and innovative financial education and counseling programs to over 1,000,000 employees at over 600 organizations. Financial Finesse partners with organizations to reach goals such as reducing fiduciary liability, increasing plan participation, decreasing stress, and increasing productivity through its unique approach to financial education. Financial Finesse research is conducted by their Think Tank of CERTIFIED FINANCIAL PLANNER™ professionals who analyze usage of the company’s financial education services to monitor trends in employee financial issues. Financial Finesse does not sell products nor manage assets. For more information, visit www.financialfinesse.com.

Contacts

Financial Finesse
Danielle Encinas, 424-218-7954
Danielle.Encinas@financialfinesse.com

Release Summary

Financial wellness innovator Liz Davidson, CEO of Financial Finesse, Inc. expressed support for President Obama’s recent comments to the AARP calling for uniform rules that require retirement advisors

Contacts

Financial Finesse
Danielle Encinas, 424-218-7954
Danielle.Encinas@financialfinesse.com