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☆ Who Can Be Trusted for Retirement Advice? New Rules Strengthen Protections.
▼ + stars: | 2024-04-23 | by ( Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

But many people don’t realize that the rules financial professionals must follow vary, depending on where they work and what products they’re selling. One of those federal regulations, which governs retirement plans, was just tightened: The Biden administration announced new rules on Tuesday that will require more financial professionals to adhere to the highest standards when providing financial advice about your retirement money. The goal is to minimize conflicts of interest, or at least ensure that they aren’t influencing investment professionals’ advice that lines their pockets at the customers’ expense. The changes, issued by the Department of Labor, which oversees retirement plans, close loopholes that made it easier for many investment professionals to avoid fiduciary status — including, for example, when workers roll over their savings from a 401(k) plan to an individual retirement account. Those transactions, which totaled nearly $800 billion in 2022, weren’t always covered by these investor protections, even though these sums often amount to a person’s life savings.

Persons: they’d, weren’t Organizations: Biden, Federal, Department of Labor

☆ Trump Media is suing its cofounders, alleging they failed 'spectacularly' and did 'significant damage' to the business
▼ + stars: | 2024-04-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Trump's media company is suing its cofounders, alleging they failed the business before its SPAC deal. AdvertisementTrump Media is suing its cofounders, alleging they failed the company and did "significant damage" to its business, according to documents filed in a Florida civil court. Moss and Litinsky had the potential to "profit handsomely" if Trump Media completed its merger deal. The filing says: "Moss and Litinsky failed spectacularly at every turn. Trump Media did not immediately respond to a request for comment.

Persons: Wesley Moss, Andrew Litinsky, Moss, —, Trump, Patrick Orlando, Litinsky Organizations: TMTG, Service, Trump Media, Corp, United Atlantic Ventures, Orlando's, Trump, DWAC, Company Locations: Florida

☆ How a New Rule Could Change the Way Advisers Handle Your Retirement Money
▼ + stars: | 2024-03-26 | by ( Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

It seems like an issue everyone can agree on: Financial professionals should be required to handle our retirement money with the utmost care, putting investors’ interests first. The issue has re-emerged as the department prepares to release a final rule that would require more financial professionals to act as fiduciaries — that is, they’d be held to the highest standard, across the investment landscape, when providing advice on retirement money held or destined for tax-advantaged accounts, like individual retirement accounts. Most retirement plan administrators who oversee the trillions of dollars held in 401(k) plans are already held to this standard, part of a 1974 law known as ERISA, which was established to oversee private pension plans before 401(k)s existed. But it doesn’t generally apply, for example, when workers roll over their pile of money into an I.R.A. Nearly 5.7 million people rolled $620 billion into I.R.A.s in 2020, according to the latest Internal Revenue Service data.

Persons: they’d Organizations: U.S . Labor Department, Internal Revenue Service

☆ Bitcoin ETFs could open floodgates to $30 trillion wealth management market
▼ + stars: | 2024-01-13 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +5 min

SEC Chair Gary Gensler continues to issue stern warnings when it comes to crypto investments, but that's not holding back activity. For the $30 trillion advised wealth management industry, the floodgates could be about to open. "For the vast majority of people, a low-cost bitcoin ETF is going to be the easiest way to do that," Hougan said. According to data from Robinhood , 81% of bitcoin ETF trading volume in the first week was in individual accounts, with the rest in retirement accounts. In a report on its website in October, Galaxy Digital said the "strongest marginal improvement" occurred when portfolios moved from a 0% to 1% bitcoin allocation.

Persons: Gary Gensler, that's, Jan van Eck, Anthony Pompliano, Pompliano, Matt Hougan, wirehouses, they've, Hougan, WisdomTree, bitcoin, Matt Walsh, Walsh Organizations: Securities and Exchange Commission, SEC, Investments, Chartered, Fund, Management, VettaFi, CFA, Investor Trust, Galaxy Digital, Fidelity, Island Ventures, Fidelity Investments Locations: U.S, Robinhood

The trend worries some U.S. lawmakers who fear corporate interest will make agricultural land unaffordable for the next generation of farmers. Investment firm acquisitions are also outpacing farmland purchases by foreign entities, according to data from the U.S. Department of Agriculture (USDA). Lawmakers debated this year whether to curtail foreign farmland ownership, concerned that adversaries might buy land to exert political influence. "If the next generation isn’t enticed to come back to the farm," he said, "then who’s going to own that land?" About 60% of U.S. farmland is farmer-owned and -operated, with the rest owned by non-farmer operators including individuals, trusts, and corporations, according to USDA.

Persons: Nuveen, Paul Schadegg, Tim Gibbons, isn’t, It’s, David Gladstone, Gladstone, Cory Booker, Bruce Sherrick, Leah Douglas, Richard Valdmanis, Anna Driver Organizations: Investment, Reuters, Manulife Investment Management, National Council of Real Estate Investment, United Nations, U.S . Department of Agriculture, Lawmakers, Senate, National Defense, Farmers National Company, Missouri Rural Crisis Center, USDA, Gladstone, Agriculture Committee, TIAA, Research, University of Illinois, Thomson Locations: U.S, United, China, Russia, Iran, North Korea, Missouri

☆ Is a Financial Advisor Worth It?
▼ + stars: | 2023-10-24 | by ( Bernice Napach | ) www.wsj.com time to read: +12 min

The right financial advisor can help you find the right answers to your life’s biggest, most difficult financial decisions. A one-time feeIf all you need is a comprehensive financial plan—a look at how your current savings, including your 401(k) and investments stack up—you don’t need to retain a financial advisor. When a financial advisor may be worth the costA financial advisor is worth paying for if they provide help you need, whether because you don’t have the time or financial acumen or you simply don’t want to deal with your finances. You want reassurancePlenty of investors work with a financial advisor for less tangible reasons too. ”It’s important that you get quality fiduciary advice on all those subjects because they’re irrevocable.”When a financial advisor probably isn’t worth the costThere are several financial areas where paying for a financial advisor may not be worth the cost, especially if you are willing to do a little basic research and have the discipline to stick to your goals.

Persons: Bernice Napach, ”, Rick Ferri, Read, it’s, that’s, won’t, Fee, Micah Hauptman, Peter Palion, —, “ They’re, ” Sheryl Garrett, Eric Amzalag Organizations: Vanguard, Ferri Investment Solutions, Investment, Consumer, Consumer Federation of America, IRS, Advisors, Garrett Planning Network, Peak Financial Locations: Georgetown , Texas, East Norwich, N.Y, Los Angeles

☆ How to Invest in Mutual Funds
▼ + stars: | 2023-10-11 | by ( Mallika Mitra | ) www.wsj.com time to read: +20 min

Mutual funds are relatively cheap and simple to invest in, thanks to the many trading apps and online brokerages available nowadays. To get started, read on for our 10-step guide on how to invest in mutual funds. Once you open an account, you can invest in a wide range of securities, like stocks, bonds and mutual funds. Buy mutual fund sharesNow that you’ve solidified your strategy and done your research, you are almost ready to buy mutual funds. How to buy mutual fund sharesSome mutual funds require an investment minimum, often between $500 and $3,000, but not all do.

Persons: Mallika Mitra, Tricia Rosen, ”, Rosen, “, Ameritrade, Roth, Roth IRAs, Uncle Sam, you’ve, Randy Bruns, it’s, Morningstar, Russell, hasn’t, Amy Arnott, John Bogle, Morningstar’s Arnott, pitfall Arnott, You’ll, you’ll, Don’t, Sam, haven’t Organizations: Mutual, Fidelity, Vanguard, Morningstar, SEC, Apple, Fidelity Investments Fidelity, Target, Walmart, Funds, Capital Group, Capital Group’s, The Securities, Exchange Commission, Social, Consumer, Morgan, Capital Locations: Andover, Mass, Naperville , Illinois, U.S

☆ Fin Capital has become the most prolific fintech investor in the world. Behind the scenes, there's been a phishing attack, whistleblower complaints, and a wave of exits.
▼ + stars: | 2023-08-23 | by ( Ben Bergman | ) www.businessinsider.com time to read: +12 min

It was August 2021, during the waning months of the frothy startup bull market, and Fin Capital was on the ascent. The message was a phishing attack — Fin Capital had been hacked. But there is dispute over how Fin Capital handled the attack and its aftermath. Still, as other firms have sharply pulled back on investing in the downturn, Fin Capital has done the opposite. It's unclear whether the whistleblower complaints that former Fin Capital employees filed with the SEC are being investigated.

Persons: Logan Allin, Fin Capital, Allin, you've, Gene Price, Frost Brown Todd, who'd, It's, fiduciaries, Capital, Tom Allin, Obama, Forbes, you'll, he'd, Peter Thiel ., Henry Kravis, Roelof Botha, Thiel, Kravis, Botha, fintech, Pipe's cofounders, Peter Ackerson, Ackerson, Andreessen Horowitz, fundraisings, Ben Bergman, bbergman Organizations: Fin, Sequoia, SEC, Securities and Exchange Commission, Fin Capital, Francis Yacht Club, Constellation, titans, KKR, Sequoia Capital, Caplight, FT Partners, LinkedIn, Twitter, Facebook Locations: York, Los Angeles, Fin, Silicon Valley, San Francisco, fintech, Sequoia

For people of color, talking about money with a financial planner or money coach can be daunting. "If we don't talk about our money goals or wins, how can we view money as a tool?" Figure out what kind of help you're looking forFirst, ask yourself if you're looking for a financial advisor or money coach, or potentially both. Many financial advisors are fiduciaries, who are legally obligated to act in your financial interest. If that's you, find a financial advisor to help you deepen your understanding while respecting your boundaries with risk."

Persons: —, who's, I've, Jazmin Higgins, Higgins, it's, Tori Dunlap, Rich, Ramit Sethi, that's, aren't Organizations: Service, Financial

☆ House GOP retirement fund bill takes aim at ESG investing
▼ + stars: | 2023-06-21 | by ( Emily Wilkins | ) www.cnbc.com time to read: +3 min

House Republicans are continuing their attempt to pump the brakes on so-called "woke" investing with new legislation that could place limits on financial advisors and retirement funds. Rep. Andy Barr, R-Ky., will introduce a bill Wednesday that would target funds that consider environmental, social and governance issues, known as ESG. Barr's measure would update the Employee Retirement Income Security Act to require retirement funds to focus only on maximizing profits, limiting the ability to invest in ESG options. In addition, advisors would need to disclose the difference in fees and performance between ESG funds and a similar index. Proponents say ESG investing is intended to promote the social good, although critics say it hurts investors.

Persons: Andy Barr, Kevin McCarthy, Bill Huizenga, Barr, fiduciaries, Jared Golden, Joe Manchin, Jon Tester —, Joe Biden, who's, Andy Beshear, Brad Sherman Organizations: Investments, U.S, Capitol, Republicans, CNBC, Biden, — Rep, Sens, Senate, Financial, Republican, Democratic, California Democrat, Financial Services Locations: Ky, ESG, America, Kentucky, California

☆ A Historic Breach of Fiduciary Duty
▼ + stars: | 2023-05-16 | by ( Marlo Oaks | Todd Russ | ) www.wsj.com time to read: +1 min

Highlights from a Fox Business interview with Jamie Dimon, in which the J.P. Morgan CEO discussed issues surrounding his WSJ op-ed, 'The West Needs America's Leadership.' Image: Zuma Press Composite: Mark KellyMany American workers don’t realize that their hard-earned money is being used against them. It is perhaps the most severe breach of the fiduciary standard in American history. Treasurers and other state financial officers are fiduciaries—legal stewards of Americans’ retirement assets, not the owners of those assets. Lately such proposals have included requests that U.S. financial institutions align their lending, financing and underwriting activities with a net-zero-emissions world.

☆ Inside Wells Fargo's 'chaotic' journey to transform its services for the ultrarich
▼ + stars: | 2023-05-04 | by ( Hayley Cuccinello | Reed Alexander | ) www.businessinsider.com time to read: +23 min

In late 2020, some 300 Wells Fargo employees were summoned to a conference call. "I actually welcomed that, although I did like Abbot Downing," he said of folding Abbot Downing into the private bank. One team of legacy Abbot Downing employees with $3.5 billion in assets left for Hirtle Callaghan in June 2021. Today, Ginter runs a registered investment advisor called Callan Family Office, which some former Abbot Downing employees refer to as "the new Abbot Downing." Are you a current or former client of Wells Fargo Private Bank or Abbot Downing?

[1/2] Florida Governor Ron DeSantis walks outside the Treasury during his visit in London, Britain April 28, 2023. The bill is one of the furthest-reaching efforts yet by U.S. Republicans against sustainable investing efforts, and a clear political message from DeSantis, a likely presidential candidate. We do not want them engaged on these ideological joyrides," said DeSantis just before he signed the bill at a webcast event. Analysts said the legislation goes further than other state anti-ESG bills, even as business groups worry the efforts pose financial risks. There are climate and weather risks that are highly relevant, especially in a state like Florida, and would be captured in our assessment of credit risk," Torgerson said.

☆ Future-Proofing the Board of Directors
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +29 min

Governance structures and practices should position the board to provide objective judgment and active oversight supported by board leadership, which is separate from and independent of company management. The board should design governance structures and practices that support it in determining board priorities, agendas, and information needs. The board should create governance structures and practices that ensure that directors are competent, committed, and diverse and that board and committee composition align with the company’s changing needs. Developing and supporting a positive and ethical corporate culture (see Corporate and Board Culture below). Corporate and Board CultureA strong board and corporate culture is imperative for a company’s success.

☆ The messy, high-stakes world of private equity's fossil-fuel dilemma
▼ + stars: | 2023-04-20 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +13 min

Most major private-investment firms are working to cut down on emissions their portfolio companies send into the atmosphere. It's also set targets to get three-quarters of its majority-owned power-and-energy portfolio companies' emissions that they generate directly and indirectly covered by Paris-aligned climate goals by 2025. A growing number of private-equity firms' pension-fund limited partners are under pressure themselves to either invest around environmental, social, and governance matters or shun investing through those lenses altogether. Firms' plans with their upstream investments tend to draw the most attention because they're involved in drilling for new oil and gas. If you're a private-equity firm and you continue to make new upstream investments, I don't believe you have a Paris-aligned plan.

☆ Don't be fooled by these 9 common money myths, finance gurus say
▼ + stars: | 2023-04-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +8 min

CNBC polled eight personal finance experts to help answer one question: What are the biggest money myths out there for consumers? Dealers therefore can have an incentive to charge a higher rate because they will also make more money, she said. Myth #3: Financial 'advice' always has your best interests at heartThere's a misconception that every financial advisor is a "fiduciary," said George Kinder, who pioneered the "life planning" branch of financial advice. "Although households and regulators remain concerned about the cost of financial advice, it's the absence of holistic financial advice that turns out to be so expensive," he said. There are many different fee models for financial advice, and the cost doesn't have to be significant: Many advisors have hourly or project rates, for example.

☆ Biden issues his first veto, nixing measure blocking new investment rule
▼ + stars: | 2023-03-20 | by ( Zoë Richards | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden speaks during the annual Friends of Ireland luncheon in honor of Ireland's Prime Minister (Taoiseach) Leo Varadkar at the U.S. Capitol in Washington, U.S., March 17, 2023. President Joe Biden on Monday issued his first veto since taking office, rejecting a bipartisan measure that would nullify a new administration rule for retirement plans. In the Senate vote, Democratic Sens. Rep. Andy Barr, R-Ky., introduced the measure in February, about two months after the Labor Department issued the investment rule. Following the Senate vote, Barr tweeted: "President Biden should abandon the radical climate activists and join us in putting middle-class savers ahead of politics."

☆ How to Pick a Financial Advisor
▼ + stars: | 2023-03-17 | by ( ) www.wsj.com time to read: +12 min

Read on to get started:Types of financial advisorsMany financial professionals, including financial planners, securities brokers, investment managers, and insurance brokers call themselves financial advisors so it’s important to know exactly what services an advisor provides before hiring one. Financial advisor designationsThere are myriad designations for financial advisors but only a handful that indicate the expertise most consumers need. CPAs, or Certified Public Accountants, can be certified with a Personal Financial Specialist credential, which combines their tax expertise with personal financial planning knowledge. How to find a financial advisorFinding a financial advisor is not so different from finding any other specialized service you’re in the market for. The right financial advisor can help navigate your financial life, from budgeting everyday spending to fulfilling long-term financial goals over a lifetime including the purchase of a home and a comfortable retirement.

☆ Op-ed: Be sure to ask these 5 questions before hiring a new financial advisor
▼ + stars: | 2023-03-16 | by ( Donald C. Cutler | Senior Principal At Haven Tower Group | ) www.cnbc.com time to read: +1 min

Several considerations go into selecting a financial advisory firm, especially if you are in your prime working years and have plenty of time left before you retire. More from Personal Finance:How to find the right financial advisor fit for youHere are some key things to consider before 'unretiring'Average 401(k) balance dropped 20% in 2022, Vanguard saysAnother factor is personal chemistry. Remember, your professional relationship with an advisor is much like that with a doctor — it could last decades. Yet one that doesn't come up as often: How equipped are the firm and its advisors to grow and evolve? Here are five questions to ask your current or would-be advisor to help determine whether they are running in place or capable of keeping up with your ever-changing needs.

☆ Biden’s First Veto Is Revealing
▼ + stars: | 2023-03-03 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Republicans in Congress are forcing President Biden to issue his first veto, and they’re getting bipartisan help. The Senate and House this week voted to overturn a Labor Department rule that lets retirement fund managers use worker savings for political causes. Democratic Sens. Joe Manchin and Jon Tester on Wednesday joined Republicans to pass a resolution repudiating the DOL rule. As Mr. Manchin explained, the rule lets retirement plan fiduciaries consider environmental, social and corporate governance (ESG) factors and “prioritizes politics over getting the best returns for millions of Americans’ retirement investments.”

☆ Biden’s ESG Veto Is Revealing
▼ + stars: | 2023-03-03 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

☆ Republicans Ought to Be All for ESG
▼ + stars: | 2023-03-02 | by ( Chuck Schumer | ) www.wsj.com time to read: 1 min

There are 8,000 securities listed on U.S. stock exchanges alone. Investors take many different factors into account when evaluating their investment decisions. Three such factors—environmental, social and governance, also known as ESG—have recently gotten a lot of attention from some more conservative Republicans, including Florida Gov. In the House, Republicans just passed a bill that would reverse a Labor Department rule recognizing that retirement fiduciaries may use ESG when evaluating investments. That bill will soon come before the Senate.

☆ Third Point's Loeb plans proxy contest at Bath & Body Works
▼ + stars: | 2023-02-23 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +3 min

Bath & Body Works said in a statement late on Wednesday, "The Board strongly disagrees with the views expressed in Third Point's letter." However, it said it would review and consider Third Point's proposed board nominations. Third Point followed through and announced its board challenge hours after Bath & Body Works on Tuesday said that it was adding a second new board member, possibly to assuage the hedge fund's criticisms. Bath & Body Works is valued at roughly $10 billion. This marks Third Point's first proxy fight since 2018 when it challenged Campbell Soup Co.

☆ Third Point announces proxy contest at Bath & Body Works in letter to board
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Feb 22 (Reuters) - Third Point told Bath & Body Works on Wednesday that it plans to launch a proxy contest and that the company's recent board refresh does not adequately address the hedge fund's concerns about governance, capital allocation and pay. "As fiduciaries, we have no choice but to put forth qualified director candidates and give our fellow shareholders the opportunity to elect directors who can hold the stewards of their capital responsible for the decisions they make," Third Point founder Daniel Loeb wrote in a letter to the company's board. Reporting by Svea Herbst-BaylissOur Standards: The Thomson Reuters Trust Principles.

☆ SEC to increase scrutiny of Crypto trading firms and ESG funds in 2023
▼ + stars: | 2023-02-08 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

The Securities and Exchange Commission will increase its scrutiny of crypto trading firms and investment advisers as well as Environmental, Social and Governance — or ESG — funds, among other issues on its list of top oversight priorities this year. This year, the SEC's examinations division will focus its attention on broker-dealers and registered investment advisers that use emerging financial technologies, including crypto. Registered investment advisers to private funds: To assess compliance and other risks as well as if advisers are adhering to their duties as fiduciaries. Retail investors and working families: Ensuring these groups receive advice in their best interests from broker-dealers and registered investment advisers. "In executing against the 2023 priorities, the Division will help ensure compliance with the federal securities laws and rules."

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