There has been a debate going on in the financial advisory world for many years. You see, there are two primary governing bodies for folks in the financial services business: the Securities Exchange Commission (SEC), which promotes a fiduciary standard, and the Financial Industry Regulatory Authority (FINRA), promoting a suitability standard. These are the two primary governing bodies (but there are others).The Players
The SEC, an arm of the US federal government, has regulatory authority over Registered Investment Advisors (RIA) and Investment Advisor Representatives (IAR) who provide investment advice pursuant to the Investment Advisors Act of 1940 (the ’40 …Read More
The 401k plan has been under a great deal of scrutiny lately, with quite a few proposals being offered to “fix” the system. Granted there are a few problems with the system that is in place, but the overall concept is still good. What follows is strictly my opinion of some of the real “problems” followed by a look at the presently proposed solutions that are being dallied about.
The Problems With 401k Plan
Note: for the purpose of this discussion (and most discussions here) the term 401k is used to refer to all CODA (Cash Or Deferred Arrangements) such …Read More