Is Your Advisor a Part-Time Fiduciary?

When you visit a doctor, you probably assume that he/she must do what is in your best interests and not what maximizes that doctor’s income. And you would be correct. Unfortunately, the same cannot be said with financial advisors. Being a fiduciary means that an advisor must legally put the client’s interests first, ahead of the interests of the advisor. This seems pretty basic to us at Greenspring – we have been following the fiduciary standard 100% of the time for 100% of our clients since our founding over 12 years ago.

However, the majority of advisors are not fiduciaries 100% of the time. There are several methods and loopholes to avoid being a fiduciary. You may have recently seen in the news that President Trump has ordered a review of a rule that was going to require the fiduciary standard with certain retirement accounts. Even if this rule does end up going into effect, it still only impacts those retirement accounts, not all accounts or investment products pitched by advisors. In addition, advisors are allowed to register with the government in a few ways, which lets them be a fiduciary when it comes to some activities but not a fiduciary when it comes to others.

Due to these complexities, our recommendation is to utilize a fee-only advisor such as one found at www.napfa.org (an association of fee-only advisors). Fee-only advisors are already subject to the fiduciary standard in all situations for all clients.

So the next time you see a financial advisor, ask them – Are you a fiduciary 100% of the time, or only when the government requires you to be? You might be surprised at the answer.

The (k)larity Quotient℠

I’m excited to announce that Greenspring has officially launched the (k)larity Quotient℠, a revolutionary new tool to help companies and retirement plan committees manage their corporate retirement plan.  We are describing it as the retirement industry’s first “fiduciary performance framework.”

The (k)larity Quotient℠ represents nearly a decade of innovation and research and has been in development for nearly an entire year to create the methodology and build the database.

The (k)larity Quotient℠ offers companies a simple, yet profound method for quantifying the critical aspects of a high performing retirement plan.  Using 40 key performance indicators in the 4 key dimensions that drive plan success, they can see how their plan stacks up against other comparable plans.  Most importantly, they get a real sense for what’s working, what isn’t and what steps they need to take to improve overall plan management and performance.  The goal is to provide a simple and transparent decision-making framework that helps companies improve the quality and effectiveness of plan-related decisions, benefiting both employees and the company itself.

We think the (k)larity Quotient℠ has a chance to revolutionize the retirement industry and transform the way companies design, measure and manage corporate retirement plans by giving plan fiduciaries an easy way to identify and fix issues before they became problems. Plus, it’s a very simple and straightforward process for a company to learn if its plan has a high (k)Q℠.  We’ve found it takes roughly 30 minutes for plan sponsors to fill out our questionnaire and gather 4-5 necessary documents.

You can read the press release and also watch a short, 75-second animated video we created to help explain the (k)larity Quotient℠.

Check it out at www.greenspringwealth.com/KQ!

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.