April 16, 2014

Fiduciary

The difference between fiduciaries and other financial advisors is that fiduciaries are bound by a code of ethics. Don't make the mistake of choosing the wrong one or trusting your financial advisor with too much. Read David John Marotta's series Safeguarding Your Money to make sure your finances are well protected.

Mutual Funds Offer Good Governance Assistance

my fund voted

Investing in mutual funds and ETFs offers an efficient solution for investors to engage in corporate governance issues. When you purchase a fund, you authorize fund managers to vote proxies on your behalf.

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Five Unbelievable Financial Advisor Regulations

The federal Securities and Exchange Commission (SEC)

To comply, most firms must archive and report massive amounts of information. Here are five of the more interesting regulations.

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How To Tell If Your Financial Advisor Is Really “Fee-Only”

How To Tell If Your Financial Advisor Is Really “Fee-Only”

Many will mislead you into thinking they are “fee-only” when they are not.

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Obama’s myRA Plan Violates Multiple ERISA Laws

Go to jail

Willful violations of ERISA legislation carry criminal penalties of up to a year in prison for the plan sponsor and a fine of up to $100,000 for the corporation.

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Opening A Brokerage Account

Stone grid

Opening an account is the first step in getting started in investing.

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The Importance Of The Investment Policy Statement

Scarecrow overboard

Adherence to the fiduciary standard is all about process.

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The Truth About Annuities

Shocked

Most financial planning articles about annuities pull their punches.

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Hedge Fund Advice In One Word: Don’t

Wall Street Sky

The documents where you can review 20 key issues looking for 10 red flags, or…

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How to Calculate An Advisor’s Value

Chess White Rook

Planners can add the equivalent of a 1.82% annual arithmetic return to clients through five components.

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Importance of Accurate Compensation Disclosures For Consumers

CFP Board Notice

You deserve a fee-only fiduciary standard of care.

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Is The Optimum Level Of Annuity Ownership Negative?

Sailboat to Money Island

Does it actually make sense that people should buy annuities as much as conventional wisdom says?

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Anatomy of a Scam

Scam

There is no such thing as a sure thing, and if something sounds too good to be true, it is

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Five Red Flags You Picked The Wrong Financial Advisor

Red Flag

Five red flags any one of which should make you stop and reconsider.

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How to Find a Financial Advisor, Step by Step (PBS Newshour)

PBS 2013

You’re looking for an enduring relationship based on mutual respect and trust, so plan on investing at least as much effort as you’d put into choosing an automobile, especially a used one.

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Keep Working and Hire Financial Professionals

How To Build Wealth

For families with complexity to their finances, hiring a tax professional actually saves them money. Wealth managers bring benefit to such families in the same way.

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David John Marotta part of the 2013 AIF Designee Article Competition

fi360 Competition

AIF® and AIFA® designees share their knowledge and experiences in a way that helps fiduciaries better understand and perform their role.

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Welfare Prevention Is Financial Planning

AskForHelp_t

This kitten is willing to ask for help. Be more like this kitten.

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Are Financial Advisors Hazardous to Your Wealth?

financial advisor card_t

Those who use the term “financial advisor” on their business cards can be split into two groups: fiduciary advisors and nonfiduciary advisors.

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Inverview with George Marotta: NAPFA and being a fee-only fiduciary

George Marotta

Inverview with George Marotta on NAPFA and being a fee-only fiduciary

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It’s flat-out illegal in other countries

It's flat-out illegal in other countries

There is great disagreement in the financial services world if an advisor who has continuous and comprehensive management of a client’s assets should be allowed to also benefit from transactions that they recommend.

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How do I find a fee-only commission-free (hourly rate) financial advisor?

Financial Advisers Meeting

Many people prefer having a local fee-only commission-free financial planner they can easily visit on a regular basis. Others prefer to handle everything through phone and email.

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Protecting Your Parents: Keep the Sharks at Bay

Avoid Investment Fraud

Make sure that Mom and Dad have a family member and a fiduciary advisor watching out for their finances.

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What Is Comprehensive Wealth Management?

What Is Comprehensive Wealth Management?

Advisors who offer comprehensive wealth management are like financial concierges. Their only goal is to meet your needs. If you ask for fresh strawberries, they try to find them for you.

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More Wall Street Than Main Street

NAPFA 2012-06-20 Press Release

“Average American investors start to worry that FINRA will damage their relationship with independent financial advisors.”

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Are Investment Management Fees Tax Deductible?

Wizard of Oz Money

I often get asked, “Are investment management fees tax deductible?” The answer is not a simple “yes” or “no.” Like many tax questions, the answer is “It depends.”

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Report: Clients confused about standards and don’t care

Hear no evil

Unfortunately few consumers understand what a fiduciary standard means to them.

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A fiduciary standard is good, old-fashioned common sense

We trust

“Unfortunately, some are also misleading the public by saying that a fiduciary standard would prevent the delivery of financial services to middle-American Main Street investors.”

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How Do Financial Advisors Earn Their Fee?

How Do Financial Advisors Earn Their Fee?

Investment fees are generally about 1% of assets under management and drop as assets rise. The critical question to ask is “Where do financial advisors add value that might exceed the 1% fee they charge?”

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Brotherly Agape World is $415M Ponzi Scheme

Ponzi Scheme Perpetrator Nick Cosmo

Most consumers do not know how to safeguard their money. Here is a real world example of why breaking any of the eight safeguard puts your money at peril. Make sure that your investments are properly safeguarded.

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I just renewed my CFP designation. They oppose FINRA oversight of CFP advisors.

CFP Renewal 2012

The rules which would begin to be applied to the watchdogs would not be for the sake of protecting the roost no matter how much the foxes suggest they do.

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5 Questions To Ask A Potential Financial Advisor

5 Questions To Ask A Potential Financial Advisor

“You’ll want to interview several potential candidates, and make sure you find the right person for the job. Use these questions to hire the right financial advisor.”

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What is an Accredited Investment Fiduciary?

fi306's Accredited Investment Fiduciary

Fi360 promotes a culture of fiduciary responsibility and improves the decision making processes of investment fiduciaries and other financial service providers.

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Fee-Only Financial Planner: What’s the Difference?

Fee Only

Fee-only financial planners are registered investment advisors with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales.

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Video: How to Find a Financial Advisor by SmartMoney.com

How to Find a Financial Advisor by SmartMoney.com

Experts Explain: Finding a Financial Advisor. How to find the right person to help manage your money.

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Our Highest Value to Clients

Wisdom

Wisdom is the ability to exercise good judgement in the fact of imperfect knowledge. Sometimes that means reframing the question.

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Most Commission-Based Advisors Caught Failing Clients in Research Sting

Racoon

Study in Boston area, with undercover actors posing as clients, showed commission-based advisors putting their own interests first

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Aiming For Advisors

Ready, aim, failure

I read a number of articles touting the growth and “advantages” of annuities. Personally, I’ve never met an annuity I liked.

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What does Clark Howard really think of variable annuities?

Clark Howard

“Variable annuities are garbage. They have huge expenses; big fees if you try to bag out before a certain point; and massive tax problems compared to other ways you can invest. But that’s what you’ll probably be steered to by a commissioned insurance salesperson.”

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Why NAPFA members are different from Goldman Sachs

Trees fall if they lack core values.

“Today, if you make enough money for [Goldman Sachs] (and are not currently an ax murderer) you will be promoted into a position of influence.”

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Safeguarding Your Money

Lock and Gold Coins

Given all the greed and deceit in the world of financial services you shouldn’t have to trust your financial advisor. Here is a list of eight safeguards that should be in place to help safeguard your money

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Video: Comprehensive Wealth Management

David John Marotta

Comprehensive wealth management is based on the idea that small changes in our finances can have large effects over long periods of time. These changes can make the difference in achieving our life goals.

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Foolish Ideas

Don't Lose Your Head

“Successful active management is a fantasy stoked by the financial services industry.”

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Indexing Works

Golden Glass

“Many investors think active managers can shift out of stocks in time to stem losses in bear markets. Not true.”

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The House That Bogle Built

The House That Bogle Built

Learn about the index preferred by the person who invented index funds with the Vanguard S&P 500. And no, it isn’t the S&P 500.

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How should we manage a non-profit endowment?

Prudent Practices for Investment Stewards

“There exists a timeless and flexible process for successful investment management decision making that is specifically tailored for Investment Stewards.”

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“True or false: All financial advisors are crooks” asks Kiplinger-NAPFA chat

Kiplinger 2012-01-12

Kiplinger is teaming up with the National Association of Personal Financial Advisors (NAPFA) to bring you FREE, personalized financial advice.

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You Can’t Regulate Crooks

Racoon

Unnecessary regulation annoys the good guys, and doesn’t stop the bad guys.

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The Disaster of Closed-End Mutual Fund IPOs

Shipwreck

Investors in this year’s fund IPOs should be protesting. Investors who got suckered by brokers have been massacred by fees and poor performance. Their total losses — hard to believe — total about $1 billion.

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The Hedging Game

Hedgehog

“Structured products’ risk-reward ratio is worse than you think.”

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An Appetizing Investment

Restaurant

High Net Worth individuals are often solicited to provide funds for a private venture such as opening a new restaurant business. Think thrice before considering investing.

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