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Whose IPS is it, anyway? [Hint: not yours]

Posted by Norman M. Boone, CFP® on October 16, 2014 in

One of the best characteristics of an investment policy statement is that it is collaborative. It documents the agreements and understandings both the advisor and the investor have agreed to in order to avoid surprises (e.g., “we’ll invest 60% of your portfolio in stocks and the rest in bonds” or “we’ll make every reasonable effort to avoid holding banking stocks in your portfolio, since you work for a bank”).  Without documentation, it becomes easy for a client to forget what the advisor said about rebalancing procedures, or that the client specifically...

Whose IPS is it, anyway? [Hint: not yours]

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What's in an investment policy statement?

Posted by Norm Boone on September 29, 2014 in

You already understand that having an investment policy statement is good for you and your clients and, generally speaking, know what the IPS is supposed to do. But do you sometimes struggle deciding what, exactly, you should be putting into your client IPSs?  At its core, an IPS is a document that reflects what a client and advisor have agreed to regarding how the money is to be managed.  To consider what should go into an IPS, imagine what you and your client need to know about what the other is doing. Those are the topics...

What's in an investment policy statement?

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Is the IPS just ammunition for a lawsuit?

Posted by Norm Boone on September 15, 2014 in

Having a written investment policy statement just makes it easier for my clients to sue you. You've probably heard that argument before, right? But that's only true if you are either unwilling or unable to follow what's in the IPS. And that should never happen. An IPS is a written agreement between you and your client about how the client's money is to be managed. In most cases, you (the advisor) are the one who writes the IPS, with the client's input. In cases where you are not directly involved...

Is the IPS just ammunition for a lawsuit?

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Why you need to take target date fund due diligence seriously

Posted by Bennett Aikin on July 31, 2014 in Fiduciary Excellence In the News

Ever since the Pension Protection Act in 2006 brought about the qualified default investment alternative, the popularity of target date funds has exploded. Just take a look at these stats compiled by Paladin Registry and Target Date Solutions: $800 Billion in TDFs 100,000 plans offering TDFs 20,000,000 participants in TDFs And why not? They are a better default option than cash for participants who don’t provide direction, and they seemingly solve many of the problems that have traditionally faced both plan participants and plan advisers. Everybody wins, right? Not exactly. Despite being a great concept, or maybe because they are so great...

Why you need to take target date fund due diligence seriously

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QLACs Offer New Retirement Planning Options, Advisors Must do their Due Diligence

Posted by Duane Thompson on July 23, 2014 in Fiduciary Excellence In the News Regulatory Update

Recent regulations issued by the Department of Treasury, four years in the making, offer an intriguing new retirement planning option for pension and retail advisers by easing required minimum distribution rules to encourage the purchase of deferred-income annuities.  The new rules went into effect July 2. The new regulations generally allow participants in defined contribution plans, as well as IRA account holders, to purchase what Treasury calls a Qualifying Longevity Annuity Contract, or QLAC, exempt from mandatory distribution rules at age 70½.  The latest guidance is part of the Administration’s broader effort to “bolster retirement...

QLACs Offer New Retirement Planning Options, Advisors Must do their Due Diligence

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