One of the best arguments for a universal fiduciary standard for the entire financial advice industry is a powerful expose of the deplorable behavior of the bulk of those providing investment advice to those who are retiring with large 401k portfolios undertaken by Bloomberg. Your must read this piece:
You need to be suspicious of anyone encouraging you to roll over your 401k or 403b plan. Realize that the vast majority are not looking out for your best interests (see “More of the “F” Word).
Here are a few ways to protect yourself and your hard-earned assets:
- If anyone utters the words “annuity” or “non-publicly traded REIT,” run away.
- Obtain written confirmation of their fiduciary status.
- Make sure that their firm is a “Registered Investment Advisor” (RIA).
- Make sure they never charge commissions
Verify their statements by checking their form ADV Part 2 at adviserinfor.sec.gov. This week's bonus article, “Check ‘Em Out” shows you how to find this information (and more) on every RIA in the country.