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Value of Advisors Underscored by Annuity Program Pilot

"Early responses to a new direct-to-consumer (D2C) annuity pilot program in Arizona reveal that buyers want to talk to someone -- or something -- before committing to a long-term retirement investment. The early findings in Nationwide's Guarantees Retirement Income program raise new questions for insurance companies serious about expanding through the growing D2C channel to reach middle-income consumers directly online."

Should You Use a Robo Advisor for Retirement Investing?

"A robo advisor may be a good fit for your IRA or taxable investments if you want to automate your investing and don't want to be involved in day-to-day decision making. Robo advisors generally aim to perform in line with the market, rather than trying to beat it, in order to capture market gains. If you want to make more customized decisions about your investments or try to beat the market, you might want to work with an investment professional."

401(k) Plan Sponsors Not Only Ones Affected by Adviser/Advisor Terminology

"'The distinction is more than just a letter. An 'advisor' who offers investment advice under the Investment Advisers Act of 1940 is an 'adviser.' A broker who does not serve in a fiduciary capacity can only be called an 'advisor.' Someone who designates themselves as an 'adviser' is essentially offering services under the Investment Advisers Act of 1940, the SEC, and FINRA because they are offering investment advice to their clients which means they are serving in a fiduciary capacity. It's the beauty and the richness of the English language that one letter can mean so much. The problem is that plan sponsors don't know the difference," says Ary Rosenbaum, an ERISA attorney at The Rosenbaum Law Firm located in Garden City, New York"."

Treasury Senior Advisor Mark Iwry Explains Early History of the 401(k) and Where We Might Be Heading

"The investment industry emerged in recent years as the dominant influence on and driver of 401(k)s. It was not always this way. In fact, self-directed investment -- putting the employee in charge of determining how to invest, choosing among a considerable number of investment funds or options -- is not an inherent attribute of the 401(k). The core feature of the 401(k) is the employee's ability to choose how much to contribute, not necessarily how to invest."

Good News: Most Investors Understand Target Date Funds

[But the] bad news: Slightly over 50% of that same survey group mistakenly believe that using target-date funds will guarantee that their retirement income needs will be met.

Health Reform News: Final Regs on Summary of Benefits and Coverage Try to Eliminate Redundancy with SPD

Responding to concerns that the new 'summary of benefits and coverage' (SBC) mandated by the health reform law is redundant, HHS, DOL and Treasury/IRS quickly turned around a final rule that eases some SBC requirements.

Fiduciary Standards Now Govern 42 Percent of Advised Retail Assets

"At the end of 2016, nearly $18 trillion in total assets were overseen by all financial advisors ... Of that $18 trillion, about $7.5 trillion -- 42 percent -- was subject to a fiduciary standard, either as part of a broker-dealer fee-based managed account or in a registered investment advisory (RIA) practice ... Investor awareness appears to have played a big role in pushing advisors toward fee-based models."

'Bad News Bonds' Could Increase 401(k) Fiduciary Liability

"Last week State Street Global Advisors released the results of their Biannual DC Investor Survey. In part, the results confirm the results of earlier surveys that showed 401k investors are over-weighted in bonds.... Worse, finds SSGA, investors seemed to have a fundamental misunderstanding regarding the nature, risk and safety of bonds."

IRS Retirement News for Employers, Summer 2010 (PDF)

Excerpt: The Retirement News for Employers is a periodic newsletter with retirement plan information for employers and business owners -- and their tax advisors from Employee Plans (Tax Exempt and Government Entities (TE/GE) at the IRS).

Massachusetts Rule Would Impose Fiduciary Standard for All Financial Advice

"Massachusetts Secretary of the Commonwealth William Galvin has signed off on a proposed rule that would impose a fiduciary conduct standard for broker-dealers, agents, investment advisers and investment adviser representatives providing financial advice to clients in the state.... A public hearing will be held on the proposal next month ... with adoption to follow as soon as Feb. 1."