"She had a lot on her mind. She was not happy with her job at a local bank branch and wanted to see if Payne thought she had saved enough to retire. He said what I was retiring with would carry me and everything would be wonderful, she remembered. I went home and told my husband, Oh my God, I want you to go meet him.'"
"These are perilous times for small investors like Shubert. Wall Street firms seeking to boost their share of the $48tn in US retirement accounts are salivating at the prospect of selling even more high-risk alternative investments to so-called mom and pop investors. Retirement accounts are a pot of gold that all sorts of industry players want to get their hands on, said Barbara Roper, a former senior adviser at the US Securities and Exchange Commission (SEC)."
A retiree, Cathy Shubert, entrusted more than $250,000 in 401(k) savings to an adviser who invested in structured notes, leveraged ETFs and other risky products, many of which collapsed by 2024, erasing over half her money. Wall Street firms are aggressively targeting the $48tn in US retirement accounts to sell high-risk alternatives often intended for sophisticated, wealthy clients. Former regulators and securities lawyers warn that high fees and potential for large losses can devastate inexperienced investors. Federal policy moves and an August executive order aim to loosen protections, raising the risk for small investors.
Read at www.theguardian.com
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