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RETIREMENT PLAN INSIGHTS |
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Stuff You
Need To Know!
James Lorenzen, CFP�, AIF� | February 28, 2012 |
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Greetings! 
This week: Stuff you absolutely need to know.
First: How Advisors Become Fiduciaries!
Everyone is marketing fiduciary services, including yours truly; but what does that mean? Is the person really a fiduciary or just carrying around some marketing materials? And, even if the 'advisor' - a term that's used freely by non-advisors - is a fiduciary, what does that really mean?
You'd be surprised how often I hear a plan sponsor fiduciary tell me their provider is "...taking care of everything" for them. That, of course, is a fantasy that will soon be exposed. We talked about it in a prior post entitled 'Ten Key Principles Plan Sponsors Need To Understand". If you missed it, there's a pdf download link on the sidebar.
CEO's who think you're taken care of may want to read this recent Forbes article. It will be an eye-opener for many CEOs and board members who think they've hired fiduciaries to act for them. Note: You'll have to click past Forbes' first screen to see it.
As for advisors, it's important to know how advisors function and what degree of responsibility they have. That's the topic for this week: How Advisors Become Fiduciaries PLUS The Five Levels of Fiduciary Responsibility (Liability).
It even includes a 'fiduciary organization chart', so you can see how the relationships work.
Enjoy!
Jim |
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 About IFG
The Independent Financial Group is a Registered Investment Advisor providing retirement plan investment and fiduciary consulting to plan sponsors on a fee-only direct-payment basis. IFG acts as our client's advocate in the financial marketplace, providing independent and non-conflicted guidance. IFG does not sell products, earn commissions, or accept any third-party compensation or incentives of any description. In adition to benchmarking, investment due-diligence, and fiduciary services, IFG helps plan sponsors organize and maintain required documentation.
About Jim Lorenzen, CFP�, AIF�
James Lorenzen is a CERTIFIED FINANCIAL PLANNER™ and an Accredited Investment Fiduciary� in his 20th year of private practice with clients located in New York, Florida, Colorado, and California. Jim has been a headline speaker on financial and organization development topics at more than 500 conventions throughout the United States, Canada, and the U.K. His articles have appeared in more than thirty publications, including The Journal of Compensation and Benefits, The Profit Sharing Council of America's Insights, and The National Management Association's Manage. He's also been interviewed on American Airlines' Sky Radio and by The Wall Street Journal for Smart Money magazine. More about Jim here.
Accredited Investment Fiduciary�
AIF and AIFA Designees have successfully completed a specialized program on investment
fiduciary standards of care. The curriculum is conducted by the Center for Fiduciary Studies in association with the Joseph M. Katz Graduate School of Business, University of Pittsburgh. Created by Fi360, training began in 1999 to provide the investment industry with the first full-time training and research organization focused exclusively on investment fiduciary responsibility and portfolio management. Designees are required to complete a rigorous training program, successfully pass an examination, conform to a code of ethics, and adhere to continuing education requirements on a yearly basis. These requirements ensure Designees are familiar with the prudent process developed by fi360, as well as kept up to date with recent industry events affecting fiduciaries.
About RPAG
In order to provide IFG clients with the highest standard of `best practices' and institutional-level services, while still maintaining a conflict-free independent environment. IFG has retained Retirement Plan Advisory Group (RPAG) to serve as a `back-office' consulting and technology resource. RPAG provides IFG with highly experienced `back office' of consultants and a state-of-the-art technology platform that support both IFG and plan sponsor clients. The RPAG network includes 350 member firms in 45 states serving approximately 20,000 retirement plans with $65 billion in assets. In short, everyone wins: This back-office support in design, ERISA issues, education, and technology allows The Independent Financial Group to provide institutional-level service without the conflicts of in-house product vending or hidden compensation arrangements.
About This Newsletter
Plan Sponsor Insights content represents the opion of the author. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.
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