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Investors can enjoy a tax savings on advisor fees by using this strategy

Investors can enjoy a tax savings on advisor fees by using this strategy

Finance
When investors sit down with their financial advisor to prepare their tax returns next year, they'll be confronted with new rules that for many mean an increase in the cost of having an advisor. The new tax law passed by Congress last year ends deductions on some types of advisory fees, including those based on the value of assets under management (AUM), a common way advisors charge clients. For both the client and advisor, this change is causing quite a bit of angst. Yet much of this worry is needless because many clients can still get a tax savings on some fees by using an equivalent strategy. ...
As a voodoo-practicing advisor is convicted, here's how to avoid the nightmare of bad money advice

As a voodoo-practicing advisor is convicted, here's how to avoid the nightmare of bad money advice

Finance
We've all heard of voodoo economics, but voodoo investing? Noted Washington, D.C.-area radio personality and former financial advisor Dawn Bennett was convicted earlier this week of fraud, found to have bilked 46 listeners, advisory clients and friends who trusted her out of some $ 20 million in a Ponzi scheme. Prosecutors say she used voodoo in an otherworldly attempt to escape justice. Founder and CEO of Bennett Group Financial Services (now a defunct firm) and the host of weekly radio program "Financial Myth Busting with Dawn Bennett," Bennett reportedly used investor money to pay Hindu priests in India for ceremonies to w...
Here’s the question you really want to ask your financial advisor

Here’s the question you really want to ask your financial advisor

Finance
If you’re working with a financial advisor, you want to make sure you have "the talk." And that conversation should be around exactly how you are paying them. “A great question to ask your financial advisor is, How are you compensated for us working together?” said certified financial planner Sophia Bera, founder of Gen Y Planning. “’Do I pay you directly as the client, or do you receive commissions based on the products or services you provide?’” You also want to find out what kind of financial advisor you are working with, as not all investment professionals have the same standards....
It's not up to clients to protect themselves from irrationality: Advisor

It's not up to clients to protect themselves from irrationality: Advisor

Finance
Recent stock market swings in and out of correction territory despite overall good economic news have reminded investors that such wild volatility is always a possibility. While experienced financial professionals generally take such developments in stride, how can their clients protect themselves from their own emotional reactions?The best way to avoid irrational decisions as an investor is to turn off the financial news, said certified financial planner Rick Waechter, founder of Old Peak Finance."Investing requires a long-term view," he said. "The news is by definition short-term, and there is no way to reconcile them," he said.Waechter said that, at most, investors should look at their accounts monthly — and preferably less often. "Every six to 12 months, consider rebalancing ... to get
Your friend recommended a financial advisor to you … Now what?

Your friend recommended a financial advisor to you … Now what?

Finance
Investors looking to evaluate potential financial advisors can avail themselves of many lists of sample questions, such as those suggested by the Financial Industry Regulatory Authority, for interviewing practitioners. But just how to interview references, as is frequently suggested, is less clear. What kinds of questions should a reference expect?"Getting a reference from a friend or peer is a great place to start," said Scott A. Bishop, certified financial planner and partner with STA Wealth Management. "But many [references] have a great 'feel' about the person, but not the qualifications or references."More from Advisor Insight:The bad things people do with 401(k) plansWhat sort of insurance do you need?Most consumers confused about credit, debtBishop said the first thing you should ch...