If you anticipate owing taxes in 2010, you can eliminate IRS penalties by having the amount of tax that you owe taken out of your next several paychecks. The IRS counts the money as though it were evenly paid in during the year. This way, even if you forgot (or avoided) Q1 or Q2 estimated tax payments, you can still keep the tax man happy without having to give him ALL of your December check. Talk to your HR department on how to change the amount of tax withheld in your check.
Be Prosperous!
Peggy
Peggy Doviak
Tuesday, August 24, 2010
Monday, August 23, 2010
All Financial Advisers Should Act as Fiduciaries 2
This is just a reminder to review my post from August 19 on the need to contact the SEC to share your opinion about financial advisers holding a fiduciary standard. Please take the time to go to the SEC site! The comment period ends August 30, and those who believe the standard shouldn't apply are fighting hard!
Be Prosperous!
Peggy
Be Prosperous!
Peggy
Thursday, August 19, 2010
All Financial Advisers Should Act as Fiduciaries
As you know, I am a huge fan of the section of the financial reform bill that calls for studying the effects of two standards of care for financial clients: fiduciary status and suitability. I believe ALL financial advisers should act as fiduciaries, placing their clients best interests ahead of the adviser's best interests. The brokerage community is levelling an attack at the single standard policy, and the SEC is going to conduct a study on whether or not the two standards should be replaced with the single fiduciary standard.
If you agree with me, please retype the SEC link I have provided, and share your opinions. If you want to include a letter, I have written a "boiler plate" letter that you can cut and paste, personalize, and attach on the SEC's website. Just sign your own name, or feel free to make any changes to the letter.
www.sec.gov/cgi-bin/ruling-comments?ruling=4-606&rule_path=/comments/4-606&file_num=4-606&action=Show_Form&title=Study%20Regarding%20Obligations%20of%20Brokers%2C%20Dealers%2C%20and%20Investment%20Advisers"
Here is a sample letter for you:
RE: File No: 4-606
Dear Ms. Murphy:
I am a client of a financial adviser who holds a fiduciary standard. I believe that all who hold themselves to be part of the financial services industry should act as a fiduciary. It is unfair to consumers that the quality of advice they receive from a financial professional is dependent on the professional’s registration or title. It’s no wonder consumers are confused, and do not know whether their financial professional is looking out for their best interests.
I recognize and understand that the advice that my financial professional gives me is in my best interest because their loyalty is to me first; they advise me with utmost good faith; they manage any conflicts of interest that may harm me and disclose those conflicts to me; they are paid for the advice they give me and the investments they select for me; and they are required to choose from the best investments available, keeping my interests first. The fee or commission model does not impact whether or not a financial adviser can act as a fiduciary, as products in either compensation model can hold a fiduciary standard.
As a fiduciary, my adviser can choose to operate in a business model that is best for me. The key is fully disclosing, and avoiding and fairly managing conflicts of interest. Providing financial advice with fiduciary accountability does not reduce services to middle Americans. It insures that the services consumers receive will be in their best interests -- not in the best interests of the financial intermediary or his or her company.
I urge you to recommend to Congress that it is necessary and appropriate in the public interest and for the protection of consumers to extend the fiduciary standard to broker-dealers, who provide personalized investment advice, and to initiate a rulemaking to achieve this long overdue consumer reform.
Sincerely,
**Your name here**
If you agree with me, please retype the SEC link I have provided, and share your opinions. If you want to include a letter, I have written a "boiler plate" letter that you can cut and paste, personalize, and attach on the SEC's website. Just sign your own name, or feel free to make any changes to the letter.
www.sec.gov/cgi-bin/ruling-comments?ruling=4-606&rule_path=/comments/4-606&file_num=4-606&action=Show_Form&title=Study%20Regarding%20Obligations%20of%20Brokers%2C%20Dealers%2C%20and%20Investment%20Advisers"
Here is a sample letter for you:
RE: File No: 4-606
Dear Ms. Murphy:
I am a client of a financial adviser who holds a fiduciary standard. I believe that all who hold themselves to be part of the financial services industry should act as a fiduciary. It is unfair to consumers that the quality of advice they receive from a financial professional is dependent on the professional’s registration or title. It’s no wonder consumers are confused, and do not know whether their financial professional is looking out for their best interests.
I recognize and understand that the advice that my financial professional gives me is in my best interest because their loyalty is to me first; they advise me with utmost good faith; they manage any conflicts of interest that may harm me and disclose those conflicts to me; they are paid for the advice they give me and the investments they select for me; and they are required to choose from the best investments available, keeping my interests first. The fee or commission model does not impact whether or not a financial adviser can act as a fiduciary, as products in either compensation model can hold a fiduciary standard.
As a fiduciary, my adviser can choose to operate in a business model that is best for me. The key is fully disclosing, and avoiding and fairly managing conflicts of interest. Providing financial advice with fiduciary accountability does not reduce services to middle Americans. It insures that the services consumers receive will be in their best interests -- not in the best interests of the financial intermediary or his or her company.
I urge you to recommend to Congress that it is necessary and appropriate in the public interest and for the protection of consumers to extend the fiduciary standard to broker-dealers, who provide personalized investment advice, and to initiate a rulemaking to achieve this long overdue consumer reform.
Sincerely,
**Your name here**
Saturday, August 14, 2010
Recommended Reading
I'm about half finished with Financial Serial Killers by Ajamie and Kelly (2010). Not only does it provide interesting information about scandals you would expect (like Madoff), but it shows other financial practices where brokers and financial consultants weren't acting in the best interest of their clients.
Those of you who are my clients or read my publications regularly know my concern that financial advisors ALWAYS act as fiduciaries to their clients. I hope the SEC study leads to this change of law, and if it doesn't, I hope it sheds enough light on the issue to bring about consumer-driven change.
The book is an easy read and good for individual investors/clients/anyone considering working with a financial professional. Check it out!
Be Prosperous!
Peggy
Those of you who are my clients or read my publications regularly know my concern that financial advisors ALWAYS act as fiduciaries to their clients. I hope the SEC study leads to this change of law, and if it doesn't, I hope it sheds enough light on the issue to bring about consumer-driven change.
The book is an easy read and good for individual investors/clients/anyone considering working with a financial professional. Check it out!
Be Prosperous!
Peggy
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