About Brantley Whitley

Brantley Whitley has been a member since April 17th 2012, and has created 297 posts from scratch.

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IPB 075: Stay for the 401k?

In episode 75, our discussion revolves around a suggestion that comes from this article over at Fox Business. In particular, the article points out that many larger and well-known employers are aggressively raising their matching contributions for their employees in the company 401k plan.

The article goes on to suggest that companies believe this is an effective means of retaining talent and helping workers accumulate enough money to retire–making way for younger employees.

We think that all sounds great. More money from the company you work for toward your retirement is generally a good thing.

But…do people really stay with a company because of the matching contribution in the 401k? Not likely.

We've both been in the business of talking personal finances with people for a number of years and never heard anyone mention their sweet 401k as a reason they stayed at a job. The best retention tool seems to be actually paying people more.

 

IPB 074: Whole Life Insurance Litigation

 

Recent settlements have been reached between policyholders and a couple of mutual life insurance companies. Turns out an obscure bit of insurance regulation from 100 years ago might get you an extra $22 that you weren't expecting.

We've been asked a few times about these lawsuits over dividend underpayment, so we'd share our perspective on the issue in episode 74.

IPB 073: Don’t Worry About the Economy…We Got This

 

Recent comments from Fed Chairman, Janet Yellen, indicate that she thinks we'll never see another financial crisis like we saw in 2008. She's probably right but is that really a profound observation?

IPB 072: How Do You Define “Best Interest”?

 

Well, the day of reckoning has come and gone. The new Department of Labor's new Fiduciary Rule is largely in effect across the financial services industry.

Discussion over the rule and its implications have been debated over the last couple of years with a fair degree of intensity. Still it seems that the smoke screen has worked.

The new rule expands the definition of a fiduciary as it relates to giving investment advice regarding retirement accounts.

We're not trying to explain the rule in today's episode…as far as I can tell from attending several informational webinars/meetings regarding the implications of the rule there's no agreement or real understanding of what it means for advisers.

Big surprise, right?

We aren't all that concerned with procedural issues (disclosures, paperwork etc.) as much as we're concerned about how this new rule warps the definition of “best interest” and what it really means to act in the capacity of a fiduciary.

Our issue isn't really about a rule change, that's just what's visible. What's more troubling is that policymakers are attempting to fix a perceived problem that they don't really understand. A new rule will not fix the problem.

According to information published by the Insurance Research Council, almost 13% of all automobile accidents in the U.S. are caused by people who have no insurance. Yet, it's illegal to drive without insurance in almost every state.

I got some breaking news for you…some people do bad things and writing new rules won't change it.

The new rule implies that what's in your client's best interest has an absolute right or wrong. And before you think it…yes, fraud is always wrong.

But…what's in my clients best interest is highly subjective and that has not changed–rule or no rule.

IPB 071: Nationwide Sued for Increasing Cost of Insurance

How premiums flow with universal life insurance

 

Are increasing COI charges really a problem with universal life insurance? Or could it be that competence in understanding policy design (from the outset) and management is actually more important?

Today we're discussing an ongoing lawsuit between a family and Nationwide regarding a couple of variable universal life policies that are owned by an ILIT (irrevocable life insurance trust).

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