He says sorry. I apologized to those who may have been offended by my misstatement. Gerri but does he still have the support of our veterans . Also, the teacher not just changing lives but literally saving one too. Donating a kidney for one of her students. So many people came forward, trying to help him and im the one that gets to do it. I feel very lucky. First grade teacher, lindsey painter will be here. One of the most comprehensive studies Consumer Reports has ever done on new cars. The report will be on newsstands next week but you can see it here tonight. All that and more, coming up on the willis report, where consumers are our business. Americas highest court is signaling it may side with 401 k investors in a major lawsuit. Weve been following this classaction suit claiming Edison International didnt act in employees best interests by picking 401 k funds. Joining me the lawyer for the workers. Welcome to the show. Great to have you here. Weve been following this case for some time. Tell me why are you suing on behalf of 401 k investors . What did edison do wrong . Edison has a 3 billion plan gerri, and a 3 billion plan can command very low fees for its employees and retirees. Instead edison had retail fees offered in their plan meaning that employees and retirees were paying almost 50 more than they should have been paying. Warren buffett doesnt pay retail. Neither should an employee after large 401 k plan. Gerri do you have any idea what this would have cost workers overtime . Yeah the department of labor says a 1 difference in fees over a career make as 28 difference in the Retirement Assets a person has at the end of their career. For an average salary, that is 70,000, 1 difference in fees. That is a big amount of money. Gerri pardon me me you sued edison on behalf of 401 k investors but doesnt edison hire a Plan Administrator to advise them how to set inthe 401 k . Isnt that the entity really doing the bad stuff here . No. The employer as the plan sponsor, gerri retains the fiduciary responsibility to make sure that any advisors are giving them goo advice and that fees are reasonable. And it is our con tension they didnt that here when offering retail highpriced fees. All it took was a mean call they could haved much lower rates. Gerri for their part, people on the other side of the table from you in these lawsuits they basically say, how can we keep up with that . Fees change every day. Theyre always changes. It is difficult to take, you know to make sure you always have the lowest cost product. What do you say to that . It is very simple to see whether or not there is institutional share class for any mutual fund. It takes about 20 seconds to look at a chart. You have identical investments identical manager, everything identical except fees. Thats not hard. I dont believe they understand that. Gerri some say share classes. Some share classes charge you a ton of dough and some dont charge you much at all. Let me ask you this because the wall street journal had a story. You offered your arguments in front of the Supreme Court yesterday. Journal surmising that the court may rule in your favor. Do you think you will be successful here . We do. Were very pleased that the justices understood the issues. Frankly, gerri are understood the importance of this for American Workers and retirees going forward. The 401 k plan is now americas retirement system. And the risk is on employees. So we think, we feel very good about the case. And feel very good about the Supreme Court understanding its importance. Gerri i have to ask you before you go jerry, youre getting Something Like 30 cut of any resolution of this case that edison pays out . No. That would have gerri what journal has been reporting. Well, the journal the fact is that the court has to approve any fee. And independent gerri you have taken cuts before though right . You say cuts gerri you get paid for your work. If we win, we do. We carried this kate through eight 1 2 years, tens of thousands of attorney hours. And gerri all right. Million dollars plus in expenses for expert witnesses. I guess the point im trying to get to is this, wouldnt money be better spent by companies doing the right thing making sure theyre cheapest share classes best products the lowest costs to their 401 k holders . Why cant the standard change nationally so that everybody does it . That is the standard. Were simply trying to enforce that standard because it hasnt happened here. Gerri gerri, thank you. Pleasure talking to you. Thanks for coming on the show. Thank you, gerri. Gerri now we want to know what you think. Here is our question tonight. Do you know what 401 k fees youre paying . Have any idea . Most people dont. Log on to gerriwillis. Com to vote. I will share the results at the end of tonights show. Well, that Supreme Court case we talked about and white house push to insure brokers are working in their client best interests might have you wondering about your financial visor and if theyre doing their job. When should you fire your Financial Advisor and how should you figure that out . With us ed butowsky, managing director of chatwood investments and veronica daguerre from the wall street journal welcome to you both. Veronica, i will start with you, why do people typically want to switch . Why do they want to leave their fa . Also because that person doesnt call them back. That is one of the big reasons. They dont feel like theyre communicating. A few other reasons as well. They might like the person and see that person is giving them same generic advice they could get by doing a google search. What am i paying for if i can do this myself . Gerri i have to bring you in here ed. Reality a lot of us feel like, my savings are not doing as well as market. Whats wrong . But the devil is in the details right, ed . My entire portfolio will not always get stock market returns because it is not always in stocks. Do you think people overlook details here . A lot of advisors dumb things down to get through meeting. In reality when i look my client in the eye, do you know what rate of return you need so you dont lose purchasing power based on what you do in your lifestyle . If an advisor doesnt ask anyone that question. If your advisor hasnt asked that question, time to look somewhere else. Theyre a boat floating around ocean of investing not going where it is going. Gerri my guess you have to help them come to the number. We do. Gerri not everybody will be able to answer that. We do that. Gerri veronica, you want to unload your fa, shouldnt you do some Due Diligence . Shouldnt you do this in prespecific way and not jump the gun . You dont want to jump gun because you didnt beat the market for one year is not a good reason. If theyre not calling you back or not paying attention to you in meetings talking to your spouse and not to you, that is a reason to fire them. That said you want to make sure well you can take your money away from them but you also want to do Due Diligence how might want to go next. That process is started so youre not missing out on market returns in the meantime. Gerri ed, to you, i know you know a lot about making the switch. How do you do it and make sure that you are disentertaining gelled, that you have no ties . Sure i want to say 55 of the people switch brokers not because of investments but because of service in the industry. Lets keep that in mind. What you do, send an email send an email and copy the Branch Manager saying please stop all transactions if youre doing any. Im moving my account. Make sure the compliance manager in that office knows it as well. This way Everybody Knows pause the broker is really registered representative of that firm. You need to report to the people that are employed at that firm on corporate level. Make sure they know that. Gerri i think thats a great idea. Veronica, to you. Red flag im hiring another Financial Advisor. What kind of things should i look for or avoid . Figure out what kind of advisor you want. Do you want someone to do a Financial Plan for you . You might hire an hourly Financial Planner. If you want trading look for broker. Go on to finras website do a broker check. Gerri finra,. Finra. Org. You can do a broker check. Check out history if there are any violations. If you need advisor, get referrals from accountant or lawyer. Get leim names. Gerri not your your brotherinlaw. You can do that ask them about investment philosophy. Ask if clients like you. You dont want to be smallest client at firm with other big clients. Ask them what their plan for you is. How long will you chat with them. I love that ed. That broker check on finra doesnt include everything. It is not a per speck solution for folks out there. There is a lot of things that get missed, right . There are many things that get missed. A lot of things you need to know about somebody. There are great brokers with ding on that record. Doesnt mean theyre a bad broker. On flip side you need to make sure youre aligned with goals of that individual. You need to ask the right questions. How do you ask the right questions . You have to learn that about yourself what you really want to accomplish with this relationship. I agree. You need to make sure somebody calls you back. I had a client call me twice twice. I forgot to call them back. Please, dont think i dont care because it is no the true. But i called them. It happens. Gerri starting with you, veronica, do people know what theyre paying in 401 k fees . I think generally no. Gerri ed what do you say . There is no question, there are lots of fees. I like the lawsuit. The Group Overseeing that 401 k plan should have done their Due Diligence, as prices came down because of competition they should have made those changes. I think that guy has a good suit. Gerri well follow it ed. You have to come back on to talk about. Thank you, my friend. Ed and veronica, thank you so much. Still a lot more to come this hour including more fallout from the irs sending out incorrect forms to obamacare enrollees. Now the va secretary misrepresenting his task past, telling a homeless veteran he was in special forces when he wasnt. Well discuss that should he resign or not . Send us an email through our website, gerriwillis. Com. Well be right back. The future of the market is never clear. But at t. Rowe price we can help guide your retirement savings. Our experience is one reason 100 of our Retirement Funds beat their 10year lipper averages. So wherever your longterm goals take you we can help you feel confident. 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If a denture were to be put under a microscope we can see all the bacteria that still exists on the denture and that bacteria multiplies very rapidly. Thats why dentists recommend cleaning with polident everyday. Polidents unique micro clean formula works in just 3 minutes, killing 99. 99 of odor causing bacteria. For a cleaner, fresher brighter denture everyday. Gerri breaking news for you tonight an united continental. It sent a traumatic safety warning to its pilots what it called significant safe concerns. Wall street journal says united cited four safety events and near misses in recent weeks. Ones which pilots had to execute emergency pullup manuever to avoid crashing into the ground. Another flight landed with less than mandatory fuel reserves. Twopage memo sent out last months does not have specifics on close calls. They were not widely reported so you probably havent heard about them. United continental telling pilots to step up safety issues in the cockpit after series of safety issues. Well bring you the latest as we get it. Va chief we talked a lot about this Robert Macdonald lying again about serving in special forces, a lie he said was an effort to relate to a homeless veteran. In an attempt to connect with that veteran to make him feel comfortable i incorrectly stated i too had been in special forces. That was wrong. And i have no excuse. But is this shaking up Americans Trust with the Department Already on shaky ground . Were asking jesse james, retired Gunnery Sergeant for the u. S. Marine corps, senior fellow at london policy research. Welcome back to the show. This presser was notable for the fact that the va chief apologized over and over again. How are his comments going over with veterans . Right now this is the least of his worries, i can understand trying to relate with veteran army ranger which he was, off the train with special operations. We probably would give him a pass on this if this was the only mistake. But in the past few weeks alone he has not given Accurate Information when he was on meet the press. He indicated he fired 60 executives, turns out only has been eight. Prior to that he went toetotoe with a congressman on the hill proclaimed i run a major company. What have you done. The congressman was actually marine and army veteran. So i find that to be bigger, this is an element that shows bigger issue on his plate. Gerri jesse, i have to tell you, i feel your pain with all those things but i want to play the sound he is taking so much heat for tonight. Listen to this. Happen ton va veteran . Yes. Really . Really. Army navy. Army . Army. What unit . Special forces. Special forces . What years . I was in special forces. Gerri so this is astounding to me this is a guy who has a career, a record as veteran. Graduated from west point. He served in the army. Was a captain. It is fairly impressive. He doesnt have to go so far saying he was in special forces. Even if he was saying it he realized it was wrong thing to do. I dont understand the mind set here. Youre somebody who calls out a congressman, a veteran somebody who lies on the street. This is guy who ran a fortune 500 company, a ceo. None of this makes sense to me. Do you have any insight here . No. And what it boils down to, there are two other examples on camera where he lost his cool or falsified information. Let me put it this way. Well make it very simple. Well get off your back when you clean up the va. He will not resign. He already stated he wouldnt do that. I wouldnt expect him to, in this white house nobody resigns. The white house supports him. Guess what . Well watch you and keep track of every single thing youre doing. As veterans and americans we have complete lack of confidence trusting you we have been nothing but deceived by va for years now. Gerri it is such an upsetting situation because the va is so troubled and so problematic. The another troubling case here the chris kyle court case ruling today on that court case. Do you think that veterans generally are satisfied with what happened there . Oh, im sure veterans are thrilled. This man was trying, routh, was trying to play up his veteran status and ptsd status. Let me explain to americans out there. There are seven million americans with ptsdps. Theyre not all veterans. It is anxiety disorder. Many on active duty still have that. Some most honorable men and women i served with are United States marines. Battery tests we have to take get into the branch of military most americans would be able to pass. Less than 1 serve this nation. When to lean on veterans status and ptsd, shot two men in the back, essentially tells us the jury didnt buy into it. He is being held accountable as he should be. Gerri jesse, great to see you. Thanks for being on the show. Thank you gerri. Gerri later in the show, wayne rogers weighs in on the debate over equal pay for women in the workforce. Next amnesty for obamacare. How a major i mean major screwup from the irs seems to have no consequences at all. Details after the break. [announcer ] what if one stalk of broccoli could protect you from cancer . What if one push up could prevent Heart Disease . [man grunts] one wishful thinking, right . But there is one step you can take to help prevent another serious disease pneumococcal pneumonia. One dose of the prevnar 13® vaccine can help protect you. From pneumococcal pneumonia, an illness that can cause coughing, chest pain difficulty breathing and may even put you in the hospital. Prevnar 13 ® is used in adults 50 and older to help prevent infections from 13 strains of the bacteria that cause pneumococcal pneumonia. 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