February 1, 2015

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.

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.” The teaser linked to an article by Lydia Saad for Gallup which found that although there is great buzz about the rise of “Robo-Advisors” a majority of Americans prefer to work with a dedicated advisor, advisory firm, or at least [...]

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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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What Is The Most Important Attribute When Hiring An Investment Manager?

Mercat

Do you want to trust your advisor is acting in your best interests or do you want them to have the legal obligation and be free of commission-based conflicts of interest?

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SEC Q&A: How do I find out whether an investment adviser ever had problems with a government regulator or has a disciplinary history?

Golden Glasses

You can get copies of Form ADV by accessing the Investment Adviser Public Disclosure (IAPD) website.

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SEC Q&A: How do investment advisers get paid?

Three Glasses

How your advisor is compensated matters. Make sure you can follow the money and know how they are getting paid.

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How Can I Tell Who Is Associated With A Broker-Dealer?

Pigs

If your advisor is on one of these lists you should be aware of how they are paid.

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Should I Tender My Allergan Shares To Valeant Pharmaceuticals?

Allergan

Perhaps they should make this into a mini-series.

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SEC Q&A: What questions should I ask when choosing an investment adviser or financial planner?

Questions to Ask Your Financial Advisor

Here are our answers and comments to the SEC’s eight suggested questions.

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FINRA Supports Regulation to Quell Competition

Wolves in Sheep's Clothing

Beware of government regulation, especially when a portion of the industry thinks it’ll be good for business.

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Study on Investment Advisers and Broker-Dealers

Wolf

These are the wolves of Wall Street pretending to be the helpful sheep of investment advisors.

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SEC Q&A: What is the difference between an investment adviser and a financial planner?

Glasses of Gold Growth

This is why we call ourselves comprehensive wealth managers.

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What Benchmark Should I Measure My Return Against?

Bad Benchmarking

Don’t let the noise of random returns ruin a brilliant investment strategy.

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Advisers Worry About Potential Costs Of Third-Party Exams

Hungry Fox

“Estimates range from $5,000 to $20,000; sharp opposition to Finra getting involved.”

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Investment Advisors vs. Brokers

Lock and Gold Coins

Low risk firms should be visited less frequently by the SEC.

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What Is A “Margin Alert”?

Schwab Margin Alerts

There are five types of Schwab Margin Alerts: Margin Maintenance, Short Position, Trade Debit Due, Margin Debit Balance / Account hold Value Advantage, and Trade Settlement Violation

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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

gavel_t

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”

IARD

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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