December 4, 2016

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.

Finding Someone You Can Trust

Trust

Those who believe that more regulation is the answer don’t understand how human nature works.

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How to Monitor Your Financial Advisor

trapeze jump

When seeking a financial advisor, you should find out if they are willing to sign a fiduciary oath putting your interests above those of their employer.

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Common Endowment Mistakes

Common Endowment Mistakes

Prudent investment practice is as much about knowing what not to do as it is about knowing what to do.

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Billing Client Accounts to the Client’s Greatest Benefit

Billing Client Accounts to the Client's Greatest Benefit

Investment managers can bring clients greater savings by carefully considering how they bill different types of accounts.

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Best Practices for Trusts, Foundations, and Endowments

Best Practices for Trusts, Foundations, and Endowments

Even if a committee has contracted with “prudent experts,” the Committee never delegates its fiduciary responsibility.

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Fulfilling Your Fiduciary Duty as a Trustee or Board Member

Fulfilling Your Fiduciary Duty as a Trustee or Board Member

Despite the fact that millions serve in a fiduciary role, many are wholly unaware of their legal responsibilities.

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TD Ameritrade Trust Company President Gets “Fee-Only” Wrong

TD Ameritrade Trust Company President Gets "Fee-Only" Wrong

It should be clear that “fee-only” means “fee-only,” not “fees and third-party manager revenue-sharing and trailing mutual fund fees.”

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Bloomberg Article Gets Asset Allocation Exactly Wrong

Bloomberg Article Gets Asset Allocation Exactly Wrong

Investors should not have to deal with financial reporters that misunderstand the field they write about.

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Language Matters: Robo-Advisor vs. Robo-Investing

Language Matters: Robo-Advisor vs. Robo-Investing

Robo-advisors do not provide personalized investment advice nor are their recommendations free from conflicts of interest.

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Language Matters: Fee-Based vs. Fee-And-Commission Based

Language Matters: Fee-Only vs. Fee-And-Commission Based

The term “fee-based” was created specifically to confuse consumers.

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Where to Find the Hidden Fees of Commission-Based Firms

Where to Find the Hidden Fees of Commission-Based Firms

Very few consumers actually read the SEC filings for the firms they have engaged.

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You Want An Advisor Who Keeps You From “The Big Mistake”

You Want An Advisor Who Keeps You From "The Big Mistake"

Real financial advisors stand between you and the Big Mistake of buying high and selling low.

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Department of Labor’s New Fiduciary Ruling

Department of Labor's New Fiduciary Ruling

Any legislation which can include FINRA’s commission-based advisors will dilute what it means to be a fiduciary.

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Can’t All Advisors Make Trades On My Behalf?

Can't All Advisors Make Trades On My Behalf?

Only give someone who is required to honor your best interest the ability to trade in your account without talking to you.

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Ameriprise Sued By Ameriprise Employees Over Excessive 401k Fees

Ameriprise Sued By Ameriprise Employees Over Excessive 401k Fees

A fundamental fiduciary principle is to avoid self-dealing.

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An Immediate Annuity Is Probably Never The Right Answer

An Immediate Annuity Is Probably Never The Right Answer

The Journal of Financial Planning featured a nice column by Harold Evensky entitled “These Innovative Research Papers Deserve Your Attention.”

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5 Good Reasons to Hire a Financial Advisor and 2 Bad Ones

5 Good Reasons to Hire a Financial Advisor and 2 Bad Ones

The job of a financial advisor is to do what you would do if you had the time and expertise.

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How To Protect Yourself From Investment Rip Offs

How To Protect Yourself From Investment Rip Offs

Six ideas to make sure you aren’t falling victim to commission-based products and services.

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Mailbag: What’s Better At Predicting Future Returns Than Morningstar Stars?

Mailbag: What's Better At Predicting Future Returns Than Morningstar Stars?

How often did it pay to heed the star rating? Most of the time, with a few exceptions. Is there a better method to use?

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Investment Stewardship Has Come a Long Way

Investment Stewardship Has Come a Long Way

Advisors have helped to shift fund management toward stewardship, but many fund companies still have room for improvement.

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Only 20% of Advisors Avoid Active Management Strategies

Active Management Strategies

The majority of advisors make the mistake of having significant or moderate use of actively managed funds.

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Looking Beyond the Bottom Line

Looking Beyond the Bottom Line

The Principles for Responsible Investment is leveraging its network in noteworthy ways.

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Three Insights About Bad 401(k) Plans From Recent Lawsuit

Three Insights About Bad 401(k) Plans From Recent Lawsuit

“America’s leader in financial planning” is ill-serving its own employees.

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Cost-Benefit Analysis for Financial Planning

Cost-Benefit Analysis for Financial Planning

The cost of commission-based advisors are so hidden that you may be paying more than you realize.

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Investors Greatly Undervalue Safeguarding Their Money

Investors Greatly Undervalue Safeguarding Their Money

Ten principles of safeguarding your money applied to the latest investment scandal.

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Schwab Intelligent Portfolios: Services Not Provided

Schwab Intelligent Portfolios: Services Not Provided

A computer algorithm cannot help you with these things.

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Schwab Intelligent Portfolios: Incomplete Rebalancing Algorithm

Schwab Intelligent Portfolios

See our review of the two pros and nine cons of how Schwab monitors and rebalances portfolios.

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Schwab Intelligent Portfolios: Built on a Faulty Premise

Schwab Intelligent Portfolios: Built on a Faulty Premise

It is a great marketing campaign, and the service is a wonderful idea, but the asset allocations of SIPs aren’t actually that intelligent.

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Vanguard Sends A Letter To Directors, Will A Stick Follow?

Vanguard Sends A Letter To Directors, Will A Stick Follow?

A board of directors is supposed to be accountable to the shareholders but sometimes they need a reminder.

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Are Socially Responsible Investing (SRI) Funds Better Investments?

Are Socially Responsible Investing Funds Better Investments?

“What do you think of the idea of Socially Responsible Investing (SRI) implemented simply by investing in something like the Domini Social Equity Fund (DSEFX)?”

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Did Obama Violate an SEC Regulation?

Did Obama Violate an SEC Regulation?

From the blind eye of the law, this seems like a violation of SEC regulation.

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Garrett Planning Network SEC Anti-Testimonial Violation

Garrett Planning Network

We expect the Garrett Planning Network to quickly take down these SEC violations from their website in response.

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Sheryl Garrett Should Have Distanced Herself From Obama Like The AARP

Sheryl Garrett Should Have Distanced Herself From Obama Like The AARP

It isn’t too late to print a retraction.

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There Are No Such Things As “Fiduciary Rules”

There Are No Such Things As "Fiduciary Rules"

The principles of a fiduciary cannot be condensed into a set of rules.

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Are CEOs Talented or Just Lucky?

Are CEOs Talented or Just Lucky?

The legal defense of Harold Hamm hinged on the belief that his wealth was the result of happenstance.

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What Does It Mean To Be A Fee-Only Fiduciary?

What Does It Mean To Be A Fee-Only Fiduciary?

Most investors are not aware of an important separation in the professionals of the financial services industry.

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Dr. Seuss to Zombie Directors – Will You Please Go Now!

Dr. Suess to Zombie Directors

In theory, the directors of a corporation are hired to provide independent oversight and protect shareholder interests. In practice, they’ve developed a reputation as country club chums with the executive managers.

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What Is The Alternative To An Annuity?

Question hole

An immediate fixed annuity is not an investment; it is an insurance product.

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Other People’s Property

Corporate Governance

Investors have every right to question whether a fund company can cast an impartial vote.

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Fiduciary Fight Part 5: Lobbyists Won’t Help

Fiduciary Fight

“We’d be fools to underestimate their tenacity and creativity when it comes to protecting their executive bonus pools.”

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Fiduciary Fight Part 4: Fiduciary Oath

Fiduciary Fight

“Take a version of this fiduciary oath to the brokers down the street and ask them to sign it. If they refuse, ask why.”

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Fiduciary Fight Part 3: Distinguish Between Brokers And Advisors

Fiduciary Fight

I love that Bob Veres thinks that labeling someone as a broker or advisor would help bring clarity. It shows his optimism.

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Jorge Posada And Jose Contreras Failed To Safeguard Their Finances

Jorge Posada And Jose Contreras Failed To Safeguard Their Finances

Their attorney, New York-based Barry Lax, says the two ballplayers are the latest professional athletes abused by predatory financial advisors.

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Fiduciary Fight Part 2: Additional Congressional Regulatory Oversight Can’t Be Trusted

Fiduciary Fight

Congress cannot protect you from the financial sharks who contribute to their campaigns, but they may protect the sharks.

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Fiduciary Fight Part 1: The Fight Over The Fiduciary Label

Fiduciary Fight

The fight is on! Everyone wants to be known as a fiduciary, but not everyone deserves the title.

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Planning Clients Often Don’t Get What They Pay For

Sad Stop

While I agree with the study, I don’t know that I agree with the prescribed solutions suggested.

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Achieving Financial Peace Of Mind

Peaceful Sleeping

One goes to bed, while the other sits down to manage the family finances.

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Most Americans Want Financial Advice From Humans

Wise Old Owl

An article title caught my eye recently: “Survey: Most Americans want financial advice from humans.”

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Failed Experiment at the SEC

Chaos Lab

Those who don’t understand or experience regulatory capture wrongly believe in a team of angels at these federal agencies tirelessly working for the common good.

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SEC Q&A: What should I do if the financial professional claims that he or she is “certified”?

Golden Champaign Glass

We believe that NAPFA advisors are a well sought minority of financial advisors.

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