The October 23, 2014, IRS Notice 2014-66 coupled with the confirmation from the DOL Information Letter of the same date cleared the way for target date funds to include unallocated deferred annuity contracts in their investment mix. The Notice and the Information Letter tie together DOL regulation regarding qualified default investment alternative and the fiduciary safe harbor rule for selecting annuity providers.
Many plans immediately “fired” PIMCO when Bill Gross’s departure was announced. However, when a manger leaves a fund that is on a plan investment menu, Chao & Company looks to the plan’s written investment policy for guidance rather than a knee-jerk reaction. .
Philip Chao was recently quoted in a Wall Street Journal article regarding Bill Gross’s departure from PIMCO. Here is that article.
This article depicts a comparison Philip makes after hearing a speech by Captain Phillips with regards to a fiduciary standard in the investment world as well trust and duty in this maritime situation.
Philip Chao, guest columnist for RIABiz, recounted the luncheon keynote from Captain Phillips at the 2014 Putnam Investment Analyst meeting. He is a true fiduciary.
Using revenue generated from investment vehicles to offset retirement expenses is a fiduciary decision, and far too many plan sponsors are not aware of the decision being made on their behalf. Unsuspecting plan sponsors believe that their retirement plan is “free” while all along the plan is paying all expenses through the use of revenue paying investment vehicles.
Here is a presentation that we have created regarding return probability.
On September 26, 2013, Fidelity issued a news release announcing the strategic asset allocation adjustments to its Freedom Funds – a series of target date funds.
The Fiscal Cliff is the culmination of expiring (Bush-era) tax cuts and subsidies and initiation of spending cuts (“Sequestration”) and new taxes beginning in 2013. Sequestration is an automatic budget cut, sanctioned under the 2011 Budget Control Act, that applies...
Effective on tax year after December 31, 2012, a Medicare Tax increase of 0.90% is set to become effective along with a new 3.8% Medicare Surtax to be levied on unearned or investment income for high income taxpayers. These new taxes were part of an attempt to...
On June 16, 2010, the SEC requested comment on the proposed required disclosure of a target date fund’s target date (or current) asset allocation and Chao & Company provided its public comment.
Certain covered service providers are required to furnish specified information to plan administrators so that they may comply with their disclosure obligations. The DOL issued a Field Assistance Bulletin affirming the application of this regulation to IRS section 403(b) plans that are ERISA-covered plans.
Target Date Funds (“TDFs”) are fast becoming the dominant investment choice for account-based DC plans in the US. The purpose of this paper is to review the quantitative analytical tools and factors that should be considered as parts of a prudent process for plan sponsors and their advisors in selecting and monitoring TDFs.
Philip Chao, Principal and Founder of Chao & Company, recently authored an AdvisorOne article regarding Goldman Sachs and the fiduciary standard. For your convenience, the article is reproduced below, or you can find it online by clicking the following link:...
Philip Chao, guest columnist for RIABiz, raised concerns that NAPFA and FPA are not holding a higher standard for IRA account owners.
Philip Chao recently published an article for InvestmentNews on the DOL Investigation of Matthew D. Hutcheson and its implications for the fidicuary standard. Here is that article.
Retirement plan investment advisors should work to apply the highest fiduciary standard, regardless of how a particular lawsuit or other events in the media play out.
On Wednesday, September 07, 2011, The Foundation for The Fiduciary Standard sent the following letter to the U.S. Department of Labor regarding the Proposed Fiduciary Rule.
A group of advisors and industry leaders (including Philip Chao) have formed a permanent fiduciary education, research and advocacy think tank.
Chao & Company’s Investment Consulting provides complete expert fiduciary advice with the goal to reduce fiduciary responsibilities and liabilities for plan sponsors. Through the development of a reasoned and practical Investment Policy Statement, we aim to guide the process in a way that will deliver cost effective solutions, identify and select investment vehicles that align with the stated goals, and prudently monitor investments.