Sales pitch or sound advice – Part Two

In my previous blog post, I talked about the basic differences between brokers and Registered Investment Advisor (RIAs) including how they are governed, their compensation arrangements and their legal obligations to clients.  In this article, I’ll explain the affect that suitability and fiduciary standards can have on an investor’s financial security.

Objective industry experts have long argued that while in theory both suitability and fiduciary standards limit self-serving behavior, in practice the suitability standard provides such wide latitude for brokers’ recommendations that it is meaningless in protecting the consumer. Read more

Stages of the financial life cycle

In my last blog I introduced the economic theory and field of study of life cycle finance, a principal goal of which is to construct a useable framework to help individuals improve their financial decision making to produce better monetary outcomes and maintain the smoothest and highest possible standard of living throughout their lives. Read more

Traditional or Roth IRAs?

A widely held financial principle is that the longer an investor can defer paying taxes, the better. Choosing to utilize a Roth IRA to accumulate retirement savings seems to defy this theory because it purposely accelerates the payment of taxes.

The tax issues surrounding traditional tax-deferred accounts vs. Roth accounts and the impact on an individual’s ability to build wealth is one of the most debated areas of retirement planning. Countless articles have addressed the Read more