Did You Know

Did You Know…

Investment advisor representatives are bound to a fiduciary standard that was established as part of the Investment Advisors Act of 1940 which requires them to put their client’s interests above their own.  Broker dealers only have to fulfill a suitability obligation, which is defined as making recommendations which are reasonably believed to be in the best interest of the client.  Who are you working with?

Did You Know…

Arthur Godfrey said, “I’m proud to be an American paying taxes.  The only thing is that I could be just as proud for half the money.”

Ed Slott says, “You need to manage your investments on the way in and manage your taxes on the way out.” In other words, you do your investing while you are young.  You cannot lose money going into retirement, or in retirement.  Resist the urge to chase the current investment fad and focus on tax strategies.  As Ed says, “go from forever taxed to never taxed.”

Did You Know…

A popular “file and suspend” strategy for taking social security benefits was changed in 2015.  The strategy involves one spouse filing for social security and suspending payments so the other spouse could take 50% of the first spouse’s benefits. Then both spouses could take a higher amount at a later age, i.e. 70.  This worked well if one spouse had a lower benefit due to a lower earnings record.  Couples using this strategy are allowed to continue.  Those age 62 at year end retain the ability to file this way at full retirement age.  Those under age 62 at year end lose the right.  There are many ways to take your social security benefit.  It’s wise to seek advice so you can decide what is best for you.

 

Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services.  Advisory clients are charged a quarterly fee for assets under management while insurance products pay a commission, which may result in a conflict of interest regarding compensation.