Thursday, July 23, 2009

Lots of Changes in California TPA's

Though there have been no press releases, my sources have told me that much is ado in the world of California Compliance TPA's.

Keenan has sold Envoy Plan Services (and Retirement Solutions Group) to Zuk Financial Group, closing around September 1st.

Tax Deferred Services has apparently been sold to the Newport Beach company R.A. Lotter, though no press release has been found.

Gatekeeper seemed to almost go out of business after major compliance nightmares and not sending money in a timely fashion, but was scooped up by CPI Qualified Plan consultants.....who then sold out to CUNA (Credit Union Backoffice).

The FBC had some problems of their own when the San Diego Union Tribune published a piece that pointed to one of the employees being involved in what appears to be less than ethical behavior (you can read about that on this blog).

Lots of action, it isn't clear to me how the participant will benefit from any of these transactions, the likelihood is that they will be offered more commission based products with what appear to be an endorsement from the employer.

Scott Dauenhauer CFP, MSFP, AIF

FBC/Nationwide Exchange Out Form for 403(b)

From the website:

Outgoing Exchange Form

To obtain this form, please contact your FBC / Nationwide Retirement Specialist.

Use this form to transfer or exchange your FBC / Nationwide 403(b) account to another approved vendor.

Fax the completed form to (800) 597-8206.

You see, the FBC is going to require that you speak with one of their "registered reps" before they allow you to move money out of their 403(b) plan - they make money from the plan and have a vested interest in keeping you in the plan. Even if you somehow obtain a form on your own (which is the purpose of this post) you will probably receive a call trying to "save" the assets from leaving. Ironically, the representatives that are touted as CFP's and advisors are not allowed to give investment advice. Of course, this doesn't stop them from doing so. Last year a client of mine was given the advice of putting 25% in the American Growth Fund, 25% in American Capital World Growth and Income, 25% in one of the American Balanced funds and 25% in the Vanguard Short Term Bond Index. The "advisor" told my client that things could get bad.....yet my clients allocation to stocks was increased by this move (keep in mind I like Vanguard and American). So, FBC reps DO give advice, they just aren't supposed to and it DOESN'T appear to be very good.

If you want to get your money out of the FBC/Nationwide plan and don't want to talk with one of their "advisors", you can utilize this attached form (unless of course they change which point I'll find it and post again).

Complain to your employer that this practice of withholding forms so that an FBC paid advisor can try to talk you out of moving your money is unethical in my opinion and should be stopped.

Scott Dauenhauer CFP, MSFP, AIF

FBC - Outgoing Exchange Form

Friday, July 10, 2009

Puplava Threatens Me With Legal Action

So I post a link to an article from the Union Tribune regarding potential nefarious activities by a county official, Dan Puplava (click on the above title to go to that post). Today I get a letter from his attorney threatening me if I don't remove the link and the picture (that of a what the attorney says is a Used Car Salesman). Funny, I'm pretty sure that I can link to articles from other publications as long as those publications don't mind me linking to them.

Just so everyone is aware, I have extended a generous offer to Mr. Puplava to tell his side of the story - I'll post it word for word. Of course there are many questions that I'd also like for him to answer that I'm sure he won't.

Anyway, thought you'd be interested to see how some are yet again attempting to censor me....this time for something I didn't even write.

Scott Dauenhauer CFP, MSFP, AIF