Important News for IRA & 401(k) Plan Participants

In June 9, 2017
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If you own an IRA or participate in a 401(k) plan, please read this important update regarding the new DOL rules.

As we informed you last May, the Labor Department has issued new rules for tax-advantaged retirement accounts.  Potentially, they affect anyone who has an IRA or a 401(k) account.  They also impact IRA rollovers, and any investment recommendations that may be made pertaining to distributions from IRAs and 401(k)s.

Under the new rules going into effect June 9, 2017, any financial services industry professional who makes investment recommendations to employees participating in a 401(k) plan, employers who sponsor a 401(k) plan, or IRA owners in exchange for compensation will be considered a fiduciary.1

The Labor Department has expanded its definition of “fiduciary” to reduce the chances of conflicts of interest affecting relationships between financial professionals and investors.  It wants to diminish any potential conflict that may emerge related to the possibility of a commission from an investment transaction.  Because of these new rules, many financial professionals will be encouraging their clients to enter a fee-based advisory relationship.  In such a relationship, financial advice is provided to the client only in exchange for an advisory fee.  That fee may be hourly, it may be per-project, it may be a quarterly or yearly retainer fee, or it may be an annual fee equivalent to a tiny percentage of your account value.

What this means for you, our client.  The new rules will have little to no effect on how Prentice Wealth Management administers your accounts.  We are pleased to see the industry, moving toward the business model we have long embraced.  PWM has already been operating under a fee-based model for nearly 10 years and has been filed as in independent Registered Investment Advisor since 2012.  In fact, the certifications held by advisors of the firm such as the Certified Financial PlannerTM (CFP®), Accredited Wealth Management AdvisorSM (AWMA®) Certified Investment Management Analyst® (CIMA®) and Chartered Financial Analyst (CFA®) all stipulate that the holder acts in the best interest of the client at all times.

You can be assured that these new rules will not affect your account values.  If you have any questions or concerns, please call us at 585-218-0001 or email us at admin@prenticewealth.com

 

 

  1. http://money.usnews.com/money/blogs/planning-to-retire/articles/2016-04-08/the-new-retirement-account-fiduciary-standard

 

Info

Securities offered through Cadaret, Grant & Co., Inc., Member FINRA/SIPC
Advisory services offered through Prentice Wealth Management, LLC, an SEC Registered Investment Advisor.
Prentice Wealth Management, LLC and Cadaret, Grant & Co., Inc. are separate entities.

Prentice Wealth Management, LLC (PWM) is a Registered Investment Advisor that is registered with the United States Securities and Exchange Commission (“SEC”) and is notice filed in the state of New York and Florida. PWM only provides investment advisory services in states where it is notice filed or where it qualifies for an exemption. Our Form ADV is available upon request.

William J. Prentice II AWMA®, CFP®, CIMA® is licensed to transact securities business in the following states:

CA, CT, DC, FL, GA, IN, MD, MA, MI, NJ, NY, NC, OR, PA, RI, SC and TX.

Member, Security Investor Protection Corporation


Investor Education Foundation