fiduciary standards

/Tag:fiduciary standards

What Seniors Need to Know about Financial Advisors and Ethical Standards

Very few investors know there are two ethical standards for financial advisors. One is a fiduciary standard that requires advisors to always do what is […]

“F” Words, Financial Services and You

Did you know two major wars are being fought in the financial services industry and their outcomes impact you? One of the adversaries is Wall Street. […]

What is the Problem with Wall Street?

Why do multi-millionaire executives, who run big Wall Street companies, continue to rip-off investors? I think I know the answer to this one. You can […]

What’s the Value of Conflict Free Advice?

conflicts of interest exist you can be sure that some people will take advantage of them. The pension consulting business has a laundry list of possible conflicts: Pay to play, proprietary products, revenue sharing, and commissions to name just a few. Disclosure is almost nonexistent, and fiduciaries are generally inept. In theory, pensions are subject to extensive oversight, but legislation and regulatory enforcement badly lag the situation on the ground. With both regulators and plan sponsors asleep at the switch, it is hard to imagine a more target rich environment for a sales organization.

For plan sponsors, the Gordian knot is a simple exercise in comparison to untangling the conflicts embedded in a bundled product pension solution. Half of pension consultants receive compensation from the managers that they recommend. So, it shouldn’t be a big surprise that those conflicts impact both price and performance in a meaningful way. […]

The Accidental Solution to the Retirement Problem

The greatest thing about defined-benefit plans was that workers didn’t have to do anything other than show up for work to get the desired result: a guaranteed income for life. It was a good system in that most workers didn’t want responsibility or control, just a secure retirement.

The defined-benefit plan is gone, and it’s not coming back. It’s been replaced by the 401(k), an accidental solution to the retirement problem. As a replacement, it’s been a dismal failure. The worker is still just looking for a secure retirement with little to no input required. Unfortunately, very few workers are on track to get that these days. […]

Do I Have a “Real” Financial Advisor?

A Watchdog visitor questioned whether the person providing him with financial advice was a real advisor. He thought the person was an advisor, however a […]