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Disclosures Are Not Sufficient To Fulfill The Fiduciary Duty

Apr 09 2019

Investment News’ Fiduciary Corner had an excellent article by Blaine F. Aikin, executive chairman of fi360, entitled “Can investment advisers disclose away all conflicts?” The entire article is worthy of careful reading as Aikin outlines one of the central challenges to the Securities and Exchange Commission’s failed experiment of relying on disclosures and informed consent to protect consumers in the United States. As Aikin writes:

Disclosures are always necessary but rarely sufficient to fulfill fiduciary obligations. …As important new guidance, the SEC notes that some complex or extensive conflicts may defy adequate disclosure, thereby depriving clients of the

Let It All Go – IRS gives you 11 years…

Apr 08 2019

When you were a kid, did you ever dream of being able to just let it all go – not having to follow any rules, no penalties, no restrictions? What if I told you that the IRS provides you with just such an environment – where you are free to literally do (or not do) almost anything you want with your IRA? Including buying yourself that octopus costume you always wanted?

So just where is this nirvana? Where you can just go willy-nilly and do whatever suits you with your IRA? It’s not a where, but rather, when.

Between …

Don’t Fall for Common Financial Myths

Apr 02 2019

Forbes discusses “10 Common Financial Myths That Should Be April Fool’s Jokes” and now that the first of April has passed, we hope that you will consider some of what they say and not take it as a joke. It isn’t about doing the exact opposite of what everyone says; rather it is about making financial planning choices that work for you. Dump stocks when the market is down. The market will go up and down; it can’t continuously go up and up. If you have chosen well and haven’t invested all you have, you can decide… Read More

Q&A: What is the Average Real Return of the Stock Market?

Apr 02 2019

I recently received the following reader question:

In “Appreciating Assets Part 1: Stocks and Bonds,” you wrote, “On average, equity investments appreciate at a rate of 6.5% over inflation.”
Can you please let me know on what study this is based? As I read the historic equity risk premium is about 4.6%, substantially lower, and this would have a huge impact on your draw down rates.
Many thanks!

There is a difference between “equity risk premium” and “real return over inflation.”

The historical equity risk premium is the return of equities minus the so-called risk free rate of …

Both Spouses Need to Increase their Financial Literacy

Apr 01 2019

The post Both Spouses Need to Increase their Financial Literacy appeared first on Yardley Wealth Management, LLC.

The New York Times recently ran a great article about financial literacy.

Business school professors did a study and found out that when one person handles most of the financial chores in a household, that person gets better at it. That makes intuitive sense. With anything that you practice at or do routinely, you tend to improve.

I would say from my personal experience in working with hundreds of couples and families, one person usually makes most of the decisions.

That turns …

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