In my previous post, Fixing ERISA to Protect Against High Plan Fees, I discussed the failure of many 401(k)/404(c) plans to comply with ERISA’s fiduciary requirement to […]
Did you know there are financial advisors who read the obituary columns every day and call on recently widowed women? Or, how about the advisors who call on hospice care workers to get the names of women whose husbands have suffered catastrophic illnesses. And lastly, there are the advisors who call on attorneys to obtain the names of recently divorced women.
These sales practices win the prize for sleaze. You have to wonder how these advisors sleep at night? Or, they may sleep really well because they have control of your assets. So what is really going on here and what can you do about it? […]
You can delegate investment work, for example researching mutual funds, to financial advisors. You can also delegate the monitoring of investments and performance reporting to advisors. You can even let advisors make investment decisions for you. For example, they make asset allocation decisions and select money managers that will make day-to-day investment decisions.
However, there is one process and decision that you cannot delegate to advisors. You are solely responsible for the selection process you use to screen, evaluate, and select financial advisors. And, you have sole responsibility for the advisor selection decision. Once you have selected a financial advisor, then you can delegate the investment work. […]