Posts filed under “Investing”

Firing a Researcher on Fiduciaries for Breaching A Fiduciary Duty

Over the years, I have written and spoken positively about the fiduciary standard (see e.g., this or this or this). Simply stated, a fiduciary is obligated to put the client’s interest first. Period. It is higher duty of care owed to clients than the traditional broker “suitability standard.” I’ll say more another time about why the new Department of Labor standards are the correct approach.

However, a recent development is so rich with irony that I could not wait to comment.

It is no surprise that the financial services industry not presently governed by the higher standard is against the new rules that the Department of Labor has proposed for making 401(k) and 403(b) advisers. It requires that all compensation-related retirement plan  advisers must act as fiduciaries.

The reason for the opposition is simple: It potentially costs the industry a boatload of money. The change in standard requires the  adviser to put the client’s interest ahead of even the  adviser’s own pecuniary interests. That is a huge change.

The thinking behind the Labor rules is that retirement investment costs have slowly inched up, to the point where now they take a meaningful chunk out of people’s nest eggs. The SEC, despite aresearch report and staff recommendation that all  advisers and brokers move to the fiduciary standard, has been politically unable to accomplish that goal.


Continues here: A Fiduciary Critic, Representing Whose Interest?



Category: 401(k), Investing, Regulation

Meet with Ben and Josh in Arizona in December!

    My colleagues Ben Carlson and Josh Brown will both be speaking at the IMN Global Indexing and ETF Conference at the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch from December 6-8, 2015. We will be meeting with clients and prospective clients in area who want to learn about our approach to investing, and how we can help them…Read More

Category: Asset Allocation, Investing

NextGen Wealth Management Conference

  I am speaking at the NextGen Wealth Management conference this afternoon. Pop over to the Princeton Club of NYC and say hello . . .   Beyond the Call of Duty: Expanding the Definition of a Financial Advisor The “typical” SEC-Registered Investment Adviser has a median of $331.2 million in regulatory assets under management,…Read More

Category: Investing, Technology

Ben Carlson Discusses Correction on CNBC

Ben Carlson, author of “A Wealth of Common Sense,” discusses keeping your cool during this correction.

Author Carlson: Keep cool during correction

Category: Asset Allocation, Investing, Video

Buy a Boat If You Like, But Only If . . .

    My Sunday Washington Post Business Section column is out. This morning, we look at why buying a boat may — or may not — be a good or bad financial decision. Its really an excuse to look at the Department of No — the advice which says “Never Do XXXX” is often just…Read More

Category: Consumer Spending, Finance, Investing, Really, really bad calls

A Corrupt Arbitration Process That Hurts Investors

Today’s column is a going to be a bit technical, but stick with it. It’s about litigation and gaming the system. No, we’re not discussing Volkswagen’s diesel deception. Instead, we are going to look at the way some organizations seek advantages when it comes to adjudicating disputes. In the world of investing, this comes up…Read More

Category: Investing, Legal, Really, really bad calls

401Ks Should Not be Complicated or Expensive

Over the years, I have been critical of the way 401(k)s are created, administered and managed. They can be expensive and filled with underperforming actively managed funds, some of which charge way too much. Some retirement plans offer too little diversification, especially in international and emerging-market sectors. I have also noted that you, the individual investor,…Read More

Category: 401(k), Investing, Mutual Funds

The 2015 Knowledge Brokers

Fascinating and detailed story:   Click through to read full profiles. Source: Chief Investment Officer

Category: Digital Media, Finance, Investing

Funds in Morningstar’s 401(k)

click through for full article Source: Morningstar

Category: 401(k), Corporate Management, Investing, Mutual Funds

#badadvice to Ruin Your Financial Life

How to ruin your financial life, #badadvice Barry Ritholtz Washington Post, September 13 2015       About two years ago, Ezra Klein wrote in The Washington Post about University of Chicago social scientist Harold Pollack, who “managed to write down pretty much everything you need to know on a 4×6 index card” about investing. I thought…Read More

Category: Apprenticed Investor, Humor, Investing, Really, really bad calls