Tag: FIDUCIARY PAPERS
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Fiduciary Papers #16: The Annuitization Decision and the Need for Conflict-Free Advice
In recent years a major development has occurred with respect to annuities … more and more insurance companies are offering annuity products with no commissions. These products can deliver more of the returns of the capital markets to the consumer. If offered to plan participants, such products could greatly enhance a retiree’s financial security and…
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Fiduciary Papers #15: The Prudent Investor Rule, 401k Accounts, and Tax-Efficient Investing
In the 401(k) world there has for many years been the option for plan participants to contribute to Roth 401(k) accounts, rather than traditional 401(k) account. For contributions to Roth accounts, no income tax deduction is provided, but (subject to certain requirements) the Roth account permits income-tax-free distributions after age 59-1/2 years. 401(k) accounts, and…
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Fiduciary Papers #14: It’s Time to End Commissions and Revenue Sharing
It is possible that all commission-based compensation involving the sale of investment products, life insurance products, and annuities could be eliminated. And it would be right and just to do so. Every commission can be transformed into a clearly understandable fixed fee that would be paid directly by the consumer. There is no need today…
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Fiduciary Papers #13: Stockbrokers and Insurance Agents: The Use of Titles May Trigger Fiduciary Status Under State Common Law (and Now Under ERISA)
Can the use of a title – such as “financial planner” (or CFP) or “financial consultant” or “wealth manager” or “investment consultant” or similar – by the registered represent of a broker-dealer firm, and/or by an insurance agent, result in the application of fiduciary duties? The short answer is “yes” (in many instances). The use…
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Fiduciary Papers #12: The Prudent Investor Rule’s Requirement for Tax Efficient-Investing
OVERVIEW: THE PRUDENT INVESTOR RULE The Uniform Prudent Investor Act (UPIA) (1995), adopted in some form by all 50 states, applies to the investment of private trust funds. The Prudent Investor Rule, which forms the core of the UPIA, also applies in other contexts, such as to guardians, conservators, executors of estates, trustees of charitable…