Monday, March 26, 2007

Reimers Pleads Guilty - FBI Says $7 Million Gone

LawFuel - The Law News Network

Francis "Bill" Reimers pleaded guilty on March 23rd to six counts of mail fraud and one count of money laundering. Bill stole from school districts and individuals. A guilty plea, while nice, is of little solice to those who lost so much while Bill and his family lived high on the hog.

I never met Bill, but did talk to him on several occasions. I hope God will forgive him, there are many out there who have been wronged that I think probably won't. They are now stuck living a retirement that they thought would be secure.

I have a feeling this isn't over, more will come out as time goes on.

Scott Dauenhauer, CFP, MSFP, AIF

Monday, March 19, 2007

Quotas tied to benefits irk advisers

Quotas tied to benefits irk advisers - InvestmentNews

Ever wonder if the agent selling you that 403(b) had other things on his or her mind? Perhaps the policy being sold to you wasn't in your interest, or perhaps the policy was sold to you for other, more nefarious reasons. Many companies offer wonderful vacations to reps who sell certain, usually proprietary products, however, a story by Investment News is shedding light on another interesting perk that is affected by product sales......Health Insurance.

It turns out that at least three major players in the 403(b) market use health insurance benefits as a way to get their reps to sell the companies own proprietary products. If reps or agents don't sell enough of the firms products they won't get health insurance for themselves, their spouse, or their children...can you say conflict of interest?

I don't believe you should ever purchase proprietary products, and this is just one more confirmation of that belief. The question remains, are you being sold a product because it is best for you or because your advisor needs it in order to ensure (actually pun inteneded) the health of his family? Advisors shouldn't be faced with this dilemma, but then again, they choose who they work for, in this case, it isn't you.

Most advisors are not fiduciaries (required to put your best interest firs) and most firms cannot allow them to be fiduciaries because of conflicts such as utilizing health insurance benefits to force agents to sell more proprietary products. What a shame.

The 403(b) industry needs reform.

Scott Dauenhauer, CFP, MSFP, AIF

Tuesday, March 13, 2007

Feds charge Danville investment executive Reimers | 03/12/2007 | Feds charge Danville investment executive Reimers

Here is an update on the Bill Reimers/Plan Compliance Group scandal.

Plan Compliance Group is the third party administrator for school districts that stole over $3 million of school district money and spent it on a lavish lifestyle. He also stole money from a federal insurance program and from several individuals who trusted him.

Scott Dauenhauer, CFP, MSFP, AIF

Monday, March 12, 2007

Investment Expenses Higher Than They Seem

Dallas Morning News | News for Dallas, Texas | Scott Burns: Columns 2007

Good column on why it is important to watch fees in your retirement plans, they are essentially like another tax on your money. High fees rarely lead to higher returns. Scott Burns has a fee calculator on his website.

Scott Dauenhauer, CFP, MSFP, AIF

Thursday, March 08, 2007