Bequeathing Your Assets to Your Broker

Bequeathing

This is an oldy, but a goody!

"A hoary piece of stockbroker lore has a young broker asking a senior partner at the firm about his proudest accomplishment. The reply:

"Over the years I've gradually transferred the assets of my clients to my own name." "

This is a good, short read!

Scott Dauenhauer, CFP(r), MSFP, AIF(r)zzzzz

Scott Dauenhauer Named Time Magazine Person of the Year

That's right, now I have something else to add to my list of achievements, Time Magazine's Person of the Year. Now, considering Hitler was also a Time Magazine Person of the Year I think perhaps its not such an honor.

If you're wondering what I am talking about, just follow the above link to Time Magazine's website. Time named "You" as the person of the year......now, since I am a "You," I qualify.

So I guess this means that if I ever do become the Time Magazine Person of the Year, it will be my second time.

Scott Dauenhauer, CFP, MSFP, AIF

UBS target of AG probe - Business First of Buffalo:

UBS target of AG probe - Business First of Buffalo:


Business First of Buffalo - December 13, 2006

"State Attorney General Eliot Spitzer's office has filed suit against UBS Financial Services Inc., contending that the brokerage firm's "InsightOne" program overcharged consumers. Spitzer said the program promised the creation of an "advice-based" account that would deliver personalized investment advice and other financial planning services.

However, the attorney general said UBS aggressively sold the accounts to investors who would have done better by paying per-transaction commissions. UBS also created a conflict of interest for its brokers by giving them a financial incentive to enroll investors in InsightOne instead of steering them toward more appropriate accounts, Spitzer said.

According to court papers filed by Spitzer's office, UBS charged one elderly InsightOne client more than $35,000 for just four trades over two years -- some $33,000 more than she would have paid in a traditional brokerage account.

Spitzer's suit was filed in state Supreme Court in Manhattan. UBS said in a statement that it is committed to "clients' individual needs" and it denied that "InSightOne" was pushed on some customers instead of cheaper options. "UBS categorically denies that the program was part of a scheme to disadvantage clients, and intends to defend itself vigorously in this matter," the company said.
It also complained that Spitzer's office "did not review or consider relevant data that supports the firm's position" before it filed the suit. "

Meridian Comments:

Spitzer is actually correct on this one. The Wall Street Journal called me the other to ask for my comments on the case and I told them that this is a classic case of a brokerage firm attempting to disguise itself as a financial planning operation without taking on the responsibility that a planning organization has to its clients.

The broker involved has only a "suitability" standard to meet, not a "fiduciary" standard. In other words the broker at UBS was not REQUIRED to put the client's best interest first. It turns out the broker broke both standards and put the client in an unsuitable account and also failed to place the clients best interest first.

Brokerage firms everywhere are perpetrating a fraud on the public, assisted by the SEC in that they are holding themselves out as fiduciaries when they are not. They try to position themselves to look just like a company similar to mine, but they are not held to the same standards - this is not right.

You should not do business with a brokerage firm.

Scott Dauenhauer, CFP(r), MSFP, AIF(r)

HSA Upgrade

This is a good PDF document explaining some of the possible changes to the HSA.

Scott Dauenhauer, CFP, MSFP, AIF

Protect Your Nest Egg From Con Artists

Protect Your Nest Egg From Con Artists - 12/10/2006 - insurancenewsnet.com

This is a must read for everybody who has money to invest.

Scott Dauenhauer, CFP, MSFP

How to Keep More of What You Make

How to Keep More of What You Make - New York Times

I believe a log-in is now required - it is free with registration.

This is a good article about why it is important to take into account taxes when building a portfolio. You can quite literally increase your rate of return, thereby putting more money in your pocket if you manage for tax purposes.

At Meridian we take into account which assets should be held in which accounts and manage your money to ensure we maximize it on an after tax basis.

Scott Dauenhauer, CFP, MSFP

Seniors 'duped' into bad investmen

Seniors 'duped' into bad investment | Santa Rosa Press Democrat // News for California's North Bay and Redwood Empire

Another article about the pitfalls of Equity Indexed Annuities (EIAs). These products are sold a lot to seniors and educators because they sound like a great deal. Who wouldn't want the upside of the market without the downside.....the problem is that this is a lie.

If you are pitched an equity indexed annuity don't be lured by the siren song. You'll know that you are dealing with someone who is less than professional.

Scott Dauenhauer, CFP, MSFP

Laugh Break

"boemerang": Erik Hartman Laughs At His Guests. Subtitled.

A client sent this too me, it is really funny. They say laughter is good for the soul, my soul is full today thanks to this video!!

Scott Dauenhauer, CFP, MSFP

America

America

A client of mine forwarded this link to me. It's pretty cool. John Wayne narrates why he loves America while pictures of what he says play in the backgound. It will only take you a few minutes to watch, I promise you won't be disappointed.

Scott Dauenhauer, CFP, MSFP