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
www.meridianwealth.com
Thursday, July 23, 2009
FBC/Nationwide Exchange Out Form for 403(b)
From the FBCRetire.com 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 it.....at 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
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 it.....at 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
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
Thursday, June 18, 2009
Alabama cancels compensation plan with Nationwide
It seems what is at issue are payments Nationwide makes to the Union that some feel were not properly disclosed.
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
Scott Dauenhauer CFP, MSFP, AIF
www.meridianwealth.com
Wednesday, May 13, 2009
Gatekeeper Acquired by CPI
Gatekeeper, a 403(b) Third Party Administrator that has come under scrutiny lately for slow payments to vendors has been acquired by CPIQualified Plan Consultants.
Plansponsor reported:
Fred Schneyer – 05/13/2009
CPI Qualified Plan Consultants, a Great Bend, Kansas-based third-party administrator (TPA) and recordkeeper, agreed to acquire Gatekeeper Administration & Consulting, a Flagstaff, Arizona-based TPA specializing in the education industry.
A CPI news release said the combined companies intend to provide CPI Common Remitter Services through a newly organized operations division under the management of Theresa Leiker, manager of Government and Tax Exempt Services at CPI. The deal is expected to be finalized no later than July 31.
As director of Retirement Consulting Services for Public Educators, Tamara Middleton, President/CEO of Gatekeeper, will be establishing a new CPI consulting division to focus on 403(b) and 457 plans within the public education sector, according to the news release.
The CPI 403(b) Gatekeeper Services will feature multiple service levels that will allow plan sponsors to decide how much or how little daily involvement they will have with the administrative aspects of their 403(b) retirement plans.
Scott Dauenhauer CFP, MSFP, AIF
Plansponsor reported:
Fred Schneyer – 05/13/2009
CPI Qualified Plan Consultants, a Great Bend, Kansas-based third-party administrator (TPA) and recordkeeper, agreed to acquire Gatekeeper Administration & Consulting, a Flagstaff, Arizona-based TPA specializing in the education industry.
A CPI news release said the combined companies intend to provide CPI Common Remitter Services through a newly organized operations division under the management of Theresa Leiker, manager of Government and Tax Exempt Services at CPI. The deal is expected to be finalized no later than July 31.
As director of Retirement Consulting Services for Public Educators, Tamara Middleton, President/CEO of Gatekeeper, will be establishing a new CPI consulting division to focus on 403(b) and 457 plans within the public education sector, according to the news release.
The CPI 403(b) Gatekeeper Services will feature multiple service levels that will allow plan sponsors to decide how much or how little daily involvement they will have with the administrative aspects of their 403(b) retirement plans.
Scott Dauenhauer CFP, MSFP, AIF
Thursday, April 23, 2009
Insurance Lead Program attempts to "Plant Thoughts"
Here are a few highlights:
Join Dean Cipriano, President of Insurance Selling Systems, as he reveals his cutting-edge subconscious selling techniques that some experts have said are too powerful, too persuasive, and should be banned.
We weren't sure that we should even have this free telephone seminar because of the controversy surrounding the topic. You see, there is an underground selling technique that is so powerful that, if used improperly, can be used to influence someone against their will. Traditional sales trainers don’t teach it because most of them are unaware that it exists.
But we decided to have the call because our goal is to help you gain every advantage possible…and the simple yet powerful breakthrough sales techniques you'll discover will not only give you a HUGE advantage, but will help you close sales faster, and dramatically increase your commissions.
On this 70-minute call, you will discover:
How to plant thoughts in your prospect's mind!
Instantly know what your prospect is thinking!
Compel prospects to agree with you and say "yes!"
Discover one simple phrase that melts away prospect resistance!
Develop rapport with anyone in 4 minutes or less! Even in your marketing message.
Five easy steps to skyrocketing your sales!
How to subconsciously influence your prospects!
How to get qualified leads to respond to your advertisements as if they were in a hypnotic trance.
Why you should never disqualify people before using this simple technique... (You are losing a lot of sales if you don't do this.)
How to become a sales superstar who earns huge commissions with literally no extra work or effort!
If any of this sounds interesting to you... you OWE it to yourself to attend this upcoming free teleseminar, where I'm going to reveal every mind boggling secret about my little known, but amazing lead methods and hypnotic sales techniques that will Explode Your Commissions like a fireworks display on the fourth of July!
During This Eye-Opening Teleseminar You're Going To Be Exposed To The Most Electrifying Lead Techniques And Astonishing Selling Methods Ever Created!
Do these guys sound like Fiduciaries?
What a farce.
Scott Dauenhauer CFP, MSFP, AIF
Thursday, March 26, 2009
Gatekeeper 403(b) Fired
Gatekeeper, the 403(b) compliance company out of Phoenix is apparently struggling with growth, usually not a bad problem to have. The problem is that its attracting headlines and not good ones. One of the problems many 403(b) TPA's are having in this new regulation environment is that the massive demand for their services is overwhelming their ability to provide those services.
I predicted a year ago that we will see several failures of "TPA's" and the loss of money, there doesn't appear to be any loss of money in this situation and the TPA has not failed.
In some cases I think the districts need to be patient, but the first rule should always be the old Reagan rule "Trust, but verify".
Scott Dauenhauer CFP, MSFP, AIF
949-916-6238
Tuesday, March 17, 2009
Dan Puplava of Fringe Benefit Consortium (San Diego County Office of Education) Accused of Wrongdoing
Dan Puplava, Deferred Compensation Manager of the San Diego County Office of Education's Fringe Benefit Consortium 403(b) and 457(b) plan evidently has been earning commissions from product sales to employees and participants of San Diego County (as well as Riverside and Imperial Counties). According to the San Diego Union Tribune article "In 2006, Puplava collected at least $355,000 in commissions as a broker for AIG Financial Advisors Inc., according to documents obtained by The San Diego Union-Tribune. He was named to the 2008 Achiever's Council, an honor reserved for agents of AIG Financial Advisors whose commissions and fees exceed $250,000 a year."
This is an interesting article and a case that warrants further attention from participants and authorities.
"Puplava's work as a broker also appears to have been done at county offices. Client statements obtained by the Union-Tribune list Puplava's phone number at the county schools office as his primary contact.
“It certainly strikes me as an apparent conflict of interest,” said Ronald F. Duska, director of the Mitchell Center for Ethical Leadership at The American College in Bryn Mawr, Pa. “It just sets up incredible temptations for the guy who's supposed to be acting as a manager.”
The conflicts of interest that exist when a fiduciary of a plan is also selling products are huge and its clear that this should be examined further. The article states "The arrangement does not appear to violate federal securities laws, but it tests the limits of the state education code and has become one of the main sticking points in litigation involving the office."
The article goes on to say "Running an outside business is legal for full-time county Office of Education employees. But according to the California Department of Justice, a deferred compensation program manager is supposed to be a neutral party – not someone who profits from marketing financial products.
“The statute prohibits school employees from acting as sales agents for 403(b) vendors in return for commissions,” according to an August opinion from the Attorney General's Office analyzing the state's education code."
The reporter found documents linking AVIVA (a purveyor of fixed annuities for 403(b) plans) commissions with Puplava as well:
"Court papers also say Puplava negotiated a deal with Aviva Life and Annuity Co. that paid him 30 percent of all commissions the partnership received from Aviva. In 2006, Puplava personally collected more than $26,000 in Aviva commissions from February to October, the cross-suit says."
Puplava denies wrongdoing but has refused to go on the record, this blog has invited him to refute in writing any and all allegations against him. We have extended an offer to allow him to submit his rebuttal in writing and we will not edit it.
Puplava has also had his attorney send this blog (and its editor) a threatening letter to remove all links to the San Diego Union Tribune article. Click on the link above to be taken to the article.
Scott Dauenhauer CFP, MSFP, AIF
This is an interesting article and a case that warrants further attention from participants and authorities.
"Puplava's work as a broker also appears to have been done at county offices. Client statements obtained by the Union-Tribune list Puplava's phone number at the county schools office as his primary contact.
“It certainly strikes me as an apparent conflict of interest,” said Ronald F. Duska, director of the Mitchell Center for Ethical Leadership at The American College in Bryn Mawr, Pa. “It just sets up incredible temptations for the guy who's supposed to be acting as a manager.”
The conflicts of interest that exist when a fiduciary of a plan is also selling products are huge and its clear that this should be examined further. The article states "The arrangement does not appear to violate federal securities laws, but it tests the limits of the state education code and has become one of the main sticking points in litigation involving the office."
The article goes on to say "Running an outside business is legal for full-time county Office of Education employees. But according to the California Department of Justice, a deferred compensation program manager is supposed to be a neutral party – not someone who profits from marketing financial products.
“The statute prohibits school employees from acting as sales agents for 403(b) vendors in return for commissions,” according to an August opinion from the Attorney General's Office analyzing the state's education code."
The reporter found documents linking AVIVA (a purveyor of fixed annuities for 403(b) plans) commissions with Puplava as well:
"Court papers also say Puplava negotiated a deal with Aviva Life and Annuity Co. that paid him 30 percent of all commissions the partnership received from Aviva. In 2006, Puplava personally collected more than $26,000 in Aviva commissions from February to October, the cross-suit says."
Puplava denies wrongdoing but has refused to go on the record, this blog has invited him to refute in writing any and all allegations against him. We have extended an offer to allow him to submit his rebuttal in writing and we will not edit it.
Puplava has also had his attorney send this blog (and its editor) a threatening letter to remove all links to the San Diego Union Tribune article. Click on the link above to be taken to the article.
Scott Dauenhauer CFP, MSFP, AIF
Sunday, February 15, 2009
Thursday, December 11, 2008
Some Relief for 403(b) Sponsors
403(b) plan sponsors still have to comply, but they have some relief available to them.
ScottyD
ScottyD
Monday, October 13, 2008
NEA Valuebuilder Parent Downgraded (Security Benefit Life)
I can't stand Security Benefit Life or the product pushed on unsuspecting teachers (NEA Valuebuilder).....turns out the parent company wasn't so smart - buying into toxic CDO's that are giving them problems.
ScottyD
ScottyD
Monday, September 29, 2008
Nurturing The Nest Egg
School districts get new federal duties in overseeing workers’ 403(b) supplemental retirement accounts.
Thursday, September 18, 2008
Educators Eye Exposure to U.S. Financial Turmoil
Good article looking at exposure that educators have to the recent financial crisis. Check out 403bwise.com.
Friday, August 22, 2008
Clarifying 'Information Sharing Agreements'
Bob Toth of Baker & Daniels clarified Information Sharing Agreements.
Scott Dauenhauer, CFP, MSFP, AIF
Scott Dauenhauer, CFP, MSFP, AIF
Monday, May 19, 2008
Lawsuit Claims Fraud in Teacher Retirement Plan
Ouch, this one is going to really hurt VALIC. Of course, they changed their name to AIG Retirement......coincidence?
To be fair, I don't know all the facts in this case and won't pass judgement. But this is a good illustration of people using sales organization that are not held to a fiduciary duty to help with their finances......the organization is going to act in the organizations best interest.
ScottyD
www.meridianwealth.com
To be fair, I don't know all the facts in this case and won't pass judgement. But this is a good illustration of people using sales organization that are not held to a fiduciary duty to help with their finances......the organization is going to act in the organizations best interest.
ScottyD
www.meridianwealth.com
Tuesday, February 12, 2008
FREE Training - Learn how to tap the lucrative 403(b) Market
FREE Training - Learn how to tap the lucrative 403(b) Market
You've got to see this. This is the baloney that the agents who sell Equity Indexed Annuities respond to.
Pure drivel.
Scott Dauenhauer
You've got to see this. This is the baloney that the agents who sell Equity Indexed Annuities respond to.
Pure drivel.
Scott Dauenhauer
Monday, February 11, 2008
School workers find costlier choices in saving for retirement
The new regulations may be helping the IRS to track 403(b) plans better, but it is at the expense of teachers retirement. In Texas, even fewer low-cost providers are showing up on the approved statewide vendor list, meaning higher fees for participants and lower account balances at retirement. The new regs are having the short term affect of solidifying the high-cost, non-fiduciary based products as the ones that are offered. I hope this will change as the years pass.
ScottyD
Tuesday, January 29, 2008
Friday, January 25, 2008
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