Kohl says baby boomers making risky investments, proposes legislation to direct funds
U.S. Sen. Herb Kohl, D-Wis., of Menomonee Falls says too many baby boomers have risky investments that could derail their plans to retire in the next couple years.
Kohl, a Wisconsin Democrat, chairs the Senate's Special Committee on Aging which found that many people who plan to retire next year have 401-K money in volatile target-date funds with sharp declines.
Kohl said one such fund lost 41 percent of its value last year.
Kohl said he asked the heads of the Labor Department and the Securities and Exchange Commission to create rules in which target-date funds are moved to more conservative investments close to a worker's retirement.
If those officials do nothing, Kohl says he'll propose legislation to make them do it so the savings of those about to retire are protected.
Kohl says a growing numbers of Americans are relying on 401-K's for their retirements.
And the government needs to make sure their investments are protected by a strong oversight.