Is Your 403(b) And Roth IRA Retirement Investing Supporting Predatory Lenders?

When I talk to prospects and clients about retirement investing, no one usually thinks about what companies are inside their portfolio. They often have a shocked reaction thinking that they might be making money on the backs of the unfortunate prey of predatory lenders. Research provider YourStake defines predatory lending as “Companies that have received 25 or more Consumer Financial Protection Bureau complaints for predatory lending complaints, including payday loans, installment loans, pawn loans, title loans, tax refund anticipation loans, personal lines of credit, and check cashing, over the last 3 years”. In this article, we break down how this can happen and offer guidance on making smarter, values-aligned choices for your retirement investing.

What Is Retirement Investing?

Retirement investing refers to the strategies and tools used to build a nest egg that can support you once you stop working. Common vehicles include employer-sponsored plans like 401(k) and 403(B) plans, as well as individual accounts such as Roth IRAs and rollover IRAs.