Improving consumer financial literacy

Congress holds a hearing today on improving consumer financial literacy under the new regulatory system.  School of Management Professor Zvi Bodie, a widely recognized authority on personal finance, recommends in a Washington Post commentary some concrete steps to improve consumer financial literacy and suggests a new standard of prudence for investment advisors.

Instead of focusing on the probability of ‘success’ in meeting some assumed target level of assets by an assumed target date, fiduciaries should be required to address the potential severity of a failure to meet a minimum standard of living in old age.”

Contact Zvi Bodie, 617-353-4160, zbodie@bu.edu

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