Tag: fiduciary
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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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A One-Page Financial Plan for a New College Graduate
I took a stab at putting together a one-page financial plan for a typical college graduate. The second page is to encourage further self-development, via readings, videos to watch, and concepts to master. Any suggestions, recommendations, comments are welcome! Thank you.
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Revisiting the Expected Returns of Various Asset Classes
September 30, 2023 After a stellar first half of 2023, the third quarter of 2023 saw losses in most U.S. stock asset classes, and even more significant losses in many U.S. real estate-related asset classes. Despite a dismal September, for the quarter foreign developed markets and emerging markets fared generally better. While there are many…
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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…
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Fiduciary Paper #10: Is Proper Tax-Efficient Portfolio Design and Management a Duty, and is it Scalable?
I have increasingly witnessed registered investment adviser (RIA) firms, as well as brokerage firms, generally disavow (often in their client services agreement) any duty to manage the investment portfolios of their clients tax-efficiently, often through a blanket statement that βtax advice is not provided.β This post seeks to ask, and generally answer, two questions: First,…