Investors' Best Interest
The Department of Labor has issued its much-debated fiduciary rule. It's designed to protect people investing for retirement in employer plans and IRAs from advice that is not in their best interest, often because of what acting on that advice would cost.
One key element of the new rule is that retirement advisers will have to make recommen-
dations that serve their clients' best interest as opposed to recommendations that are simply suitable. In addition, to charge commissions for selling specific products, these advisers and their clients must sign basic disclosure of conflict of interest contracts that state the advisers will put the clients' interests ahead of their own.
You can read a summary of the rule here.
Watt's the Word
Private placements are investments that are not required to be registered with the SEC, are not publicly traded, and are typically offered only to investors who meet certain income and net worth standards or who have allocated no more than a set percentage of their portfolios to non-traded securities.
Investing With Impact
Financial Literacy Month, also known as Financial Capability Month, is an ideal time to learn something new about investing, or turn over a new financial leaf.
For example, you might consider allocating a portion of your portfolio to investments that reflect your personal beliefs or values and are intended to have an impact on social, economic, or environmental conditions. There are several options to explore, including SRI funds and ESG and impact investments.
|Tails, You Win|
Flip a penny and there's a 50/50 chance that it will be heads up or tails up, right? Technically, that's not the case.
The heads side weighs slightly more than the tails side and so the coin should be slightly more likely to land heads down. That makes "tails" a slightly better bet.
New at Lightbulb:
The Texas Investor Guide
A new edition of The Texas Investor Guide, the popular guidebook developed in collaboration with the Texas State Securities board, is now available. The guide helps investors understand the basics of investing, avoid financial fraud, and make sound investment decisions. It also illustrates the effect of costs on investment return and how inflation can negatively affect a portfolio.
To learn more go to: www.ssb.texas.gov
For more information contact us at 212-485-8800