While seniors are often encouraged to lead an active lifestyle in retirement, too much activity may do more harm than good, according to one professor.
Although annuities incur taxes and costs, clients "can invest the same amount into a diversified municipal bond portfolio and pay no taxes,” an expert says.
Elderly clients should make sure they have enough fixed-income in their retirement portfolios to spin off cash to cover the gap between income and expenses until the market recovers.
The advisor fooled her victims into thinking she would invest their funds when in fact she used the money to buy luxury items and real estate, prosecutors claim.
By requiring brokers to look out for clients’ best interests, the SEC is effectively requiring them to give financial advice, which distinguishes them from online brokers and should let them keep charging clients premium fees.
