There has never been a better time to be an individual investor. Investors today have access to advice from highly sophisticated financial models on how to make the most of their savings. And yet things could be even better for investors if regulators made a few changes to help technology reach its full potential. In particular, financial technology companies have the ability to help ordinary investors understand their financial situation and the steps they need to take to achieve a secure retirement. Fintech applications can also help financial advisors get a holistic picture of their clients’ finances to make the best recommendations.
Often, when policymakers hear about ways they can adjust regulation to help investors, they tune out or downplay ideas because they assume investing is just for the rich. But delivering high-quality investment advice is critical for millions of ordinary workers who will rely on that advice to save effectively for retirement and turn these savings into lifetime income. Policies that support getting the best advice possible to millions of workers are critical for Americans’ retirement security.