guide to Real Estate, Banking & Personal Finance
What’s stock broker, investment advisor? BY ST E P H E N SILVERBERG Few understand the difference between an investment advisor and a stockbroker. The difference is substantial. An investment advisor is a fiduciary; this means they have a legal and ethical duty of primary loyalty to their clients. The interests of their clients are paramount. Investment advisors receive a fee based on a percentage of the value of the account. The interests of the client and investment advisor are aligned and conflicts of interest eliminated. A broker has few obligations of an investment advisor. They are not fiduciaries. A broker’s primary loyalty is to themselves and their commissions. They have no legal requirement to disclose the total cost of buying an investment. The potential for conflicts of interest exists; a broker may recommend an investment because it pays
them a higher commission. With most retail investment firms, you are dealing with a broker. Historically, says The Wall Street Journal, brokers were paid mostly to execute trades for their clients. For years, they have been permitted to call themselves financial advisors, with no disclosure
requirements. On June 5, the Securities and Exchange Commission adopted Regulation Best Interest (“RBI”). By a three to one vote, the SEC commissioners approved the RBI, along with other regulatory actions intended to enhance disclosures and clarify certain advisors’
Roslyn Heights Funeral Home
responsibility to put their clients’ interests before their own, disclose conflicts of interest (such as hidden commissions) when they make an investment recommendation. But is it enough to protect investors? The SEC says it will give in-
vestors more information about complex pay incentives and other practices that can influence a broker’s financial advice but won’t change Wall Street’s commissionbased sales model. Critics say it falls short of eliminating conflicts of interest, particularly commission-based pay or other financial arrangements. Supporters say it is higher than the current standard. Bottom line: discover if the person managing your financial accounts is a broker or an investment advisor. Understand how they get paid, so you can understand whose interest comes first. Stephen J. Silverberg is nationally recognized as a leader in the areas of estate planning, estate administration, asset preservation planning and elder law. He is a past president of the National Academy of Elder Law Attorneys, and a founding member and past president of the New York State chapter of NAELA.
ADVERTORIAL
Ask the Funeral Director… By Joseph Velotti, Funeral Director Roslyn Heights Funeral Home
Preplanning a funeral is undoubtedly one of the biggest and most important decisions you will make in your lifetime. Whether it is for you or a loved one, the first step is obtaining all the necessary information to make an informed decision. More and more people are choosing to preplan/prepay their funeral and burial expenses. In doing so, they recognize that it is smart financial planning and provides great emotional relief for themselves and their loved ones. Prepaying your funeral will allow you to make your own funeral plans, but, more importantly, preplanning will spare surviving relatives and loved ones from the emotional burden of having to make decisions at a time of great stress and grief. The most common questions people ask when they are considering preplanning their funeral arrangements are:
We are proud to announce a major renovation to our facility. Our promise is to provide the upmost attention to detail to your family. Your family will receive concierge like service in an elegant home like surrounding. We offer a complete range of affordable, quality services from Traditional Funerals to Simple Cremation.
#1. Why Pre Plan at all? • Allows individuals the opportunity to make personal and specific selections for the funeral service that most closely meets their needs. • Spares loved ones from having to second-guess the wishes of the deceased at the time of need. • Allows for time to research funeral homes, burial options, and financial considerations; • Provides an option to set aside funds for final expenses, relieving family members of an unexpected financial burden. #2. Why Pre Pay for my arrangements? • Placing the cost of the funeral (at today's prices) in an investment vehicle, so that the interest earned will keep pace with inflation to cover the cost of the funeral (at future prices) when the death occurs. • Prevents life insurance policies from being depleted at the time of a loved one's death. • Allows individuals to consider options while they are better prepared to make sound, fiscally responsible decisions. • Spares loved ones the unexpected cost of a funeral during a stressful time. Roslyn Heights Funeral Home offers price guaranteed pre-arrangement thru PREPLAN a funeral trust pre-funding program backed by the NYS Funeral Directors Association, Inc. call 516-621-4545 for more information.
75 Mineola Avenue Roslyn Heights, NY 11577 516-621-4545 Visit Us At: www.RoslynHeightsFH.com Conveniently Located 5 Blocks North of LIE Exit 37 Willis Ave.
75 Mineola Avenue, Roslyn Heights, NY 11577 • 516-621-4545