Biden wants your retirement savings to go woke

[Chris]

CRT Woke like a cancer grows.

Biden wants your retirement savings to go woke

The White House recently issued a new regulation that will allow investment fiduciaries, including 401(k) plan managers, to offer investment options that consider environmental, social, and governance (ESG) issues, such as climate change and social justice initiatives. The move could radically transform retirement investing for tens of millions of Americans nationwide.

Until now, those managing many retirement accounts were required to prioritize the best return on investment possible. By opening the door to left-wing investment plans, the Biden administration is permitting employers and private pension fund managers to effectively politicize retirement investments.

Under the new regulation, a retirement account fund manager or employer must continue to pledge to prioritize the interests of retirees, a longstanding requirement, but fiduciaries will now also be allowed to include factors like climate change and other ESG considerations in their analyses and decision-making processes. This will, by design, empower left-wing employers and fund managers to use retirement accounts to push leftist causes....

The article goes on to look at ways to protect yourself:

...First, tell your employer, pension fund manager, or other fiduciary responsible for your retirement accounts that you are not interested in ESG investing. The Biden rule does not require ESG investments; it only allows fiduciaries to offer them....

Second, the new Biden rule permits employers to make an ESG fund the default option for employees enrolled in 401(k) accounts. ...If you want to avoid this from happening in the coming years, be sure to submit your own 401(k) elections.

Third, if your employer or pension manager severely limits your options so that ESG investing is hard to avoid when contributing to a 401(k), consider other investment opportunities that would put you in greater control of your money....

[RMNIXON]

I have no objection if this remains a choice and that is made clear to employees.

The problem with the progressive left is they often sell things like this as a "choice" and the next thing you know the choice is either removed or made difficult. Like making ESG a default option as mentioned above unless you fill out forms, ect....and have made your change a matter of employer record.

[Now_What]

CRT Woke like a cancer grows.

Biden wants your retirement savings to go woke




The article goes on to look at ways to protect yourself:

There’s no reason to feel outraged. There’s no requirement to invest in these funds, only that you have environmentally responsible options available to you.

[Tahuyaman]

There’s no reason to feel outraged. There’s no requirement to invest in these funds, only that you have environmentally responsible options available to you.

Those options already exist. Forcing these things upon us is not appropriate.

[LescoBrandon]

Corporations that violate their fiduciary duty to shareholders are not sound investments.

[Chris]

I have no objection if this remains a choice and that is made clear to employees.

The problem with the progressive left is they often sell things like this as a "choice" and the next thing you know the choice is either removed or made difficult. Like making ESG a default option as mentioned above unless you fill out forms, ect....and have made your change a matter of employer record.

This sort of thing emerged from and was rejected by libertarians some years back. The idea that government should set default options, make choices for you if you don't.

[Chris]

There’s no reason to feel outraged. There’s no requirement to invest in these funds, only that you have environmentally responsible options available to you.

Not outraged, just posting a warning to watch out what happens to your 401k.

[2cent]

There’s no reason to feel outraged. There’s no requirement to invest in these funds, only that you have environmentally responsible options available to you.

Where's the outrage? I don't see it.

I will, however, say that I'm not in favor of this, as the money manager's #1 fiduciary responsibility to invest a client's money with nothing but the investor's best financial interests in mind. Nothing more; nothing less.

Now, if an investor comes to the financial 'pro' with an notion of where he'd like to invest, then a.o.k. It's his to spend as he sees fit.

ITST, I don't find it ethical for brokers to urge clients to invest in "iffy" businesses.

[LescoBrandon]

There’s no reason to feel outraged. There’s no requirement to invest in these funds, only that you have environmentally responsible options available to you.

That depends on how it's implemented. Many of these are mutual funds, and participants have limited options where you can't avoid certain investments. Need more details.

[Chris]

This sort of thing emerged from and was rejected by libertarians some years back. The idea that government should set default options, make choices for you if you don't.

As introduced, it was called libertarian paternalism, an oxymoron.