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Advisor Practice, Regulatory

THE Securities and Exchange Commission adopted regulation Best Interest (Reg BI) in 2019 and it became effective in 2020.  Now, the North American Securities Administrators Association (NASAA), the organization representing state securities regulators, has issued a report on exams conducted by its members.  Recently, Wealth Management published an article about the organization’s findings as they relate to nontraded securities, among other investments.NASAA notes that the firms examined relied heavily on suitability standards for evaluating these investment programs for customers.  Notes WM: “…too many firms failed to recommend lower-cost or lower-riskSEE DETAILS </sp...

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Advisor Practice, Real Estate

I was going through my email inbox and this article from Financial Advisor caught my eye.  I have been an advocate of reverse mortgages as a supplement to retirement income for over fifteen years.   I am aware of the risks and drawbacks, but the characteristics of the arrangements can be beneficial to certain retirees.  The article addresses the advantages and the disadvantages of the financial contracts in a straightforward manner, which I found helpful.  I bring write this because I have seen an uptick in marketing messages promoting reverse mortgages,SEE DETAILS </...

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Advisor Practice

InvestmentNews recently published an article written by Jeff Benjamin.  The article covers a lot of ground that has been well trod over the last ten years regarding the services offered and fees charged  by financial advisors.  Mr. Benjamin makes a coherent case for the consultant model for the industry.  Along the way, however, he exposes two truths the industry avoids airing at all costs.In support of his suggestion to unbundle services, he writes:The fact is that the investment management part has become a cheap commodity that most regular people areSEE DETAILS ...

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I came across a blog post titled Mini-Tenders by MacKenzie (and Other Bad Actors) are a Losing Proposition for Shareholders on the website of Rialto, Inc., a “next generation marketplace.”  Apparently, Rialto provides a platform for buyers and sellers of non-traded assets to meet and negotiate the exchange of units for which there is no formal market.  This is a valuable service to the market, and I hope to see them succeed and thrive in the marketplace.MacKenzie Capital Management is an asset manager that has provided liquidity for non-traded securitiesSEE DETAILS

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1031 Exchange, DST, Real Estate, Single Member LLC, TIC

When the IRS acknowledged the Delaware Statutory Trust (DST) as a direct investment in real estate as opposed to a security, it became the vehicle of choice for advisors and their clients executing a 1031 exchange.  The DST offered relatively small investment minimums, access to institutional type properties, convenient debt financing, and familiar marketing.  On the other hand, DSTs are restricted from certain activities: Capital improvements, new or renewed leases, new or refinanced debt.Kiplinger recently published an article describing the five types of investors that should NOT invest in DSTs. SEE DETAILS <span class="more-link-hover-im...

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