Putting Clients First

Department of LaborThe Department of Labor (DOL) Fiduciary Rule became effective on June 9, 2017. This rule requires financial firms to act in the best interest of clients when making recommendations in regards to retirement accounts.

As a recent article in Investment News* explains, this law is designed to stop advisors from putting their own interests in earning higher commission and fees over their clients’ interests, by obtaining the best investments at the lowest prices.

At Nachman Norwood & Parrott, we support these measures which align with our longstanding commitment to putting our clients first.

Central to this ruling are the requirements to ensure greater transparency for retirement investors and to mitigate conflicting advice.

At NNP, we pledge to continue to:

  • Be prudent and transparent with client recommendation
  • Put our clients’ best interests ahead of our own
  • Keep fees and expenses reasonable
  • Not make misleading statements
  • Stay in regular contact with our clients

“This ruling, while significant, will not change the way we conduct business. NNP has always been diligent in ensuring we keep our clients’ best interests at the forefront, and we are pleased efforts have been made to make those practices the industry standard.” – Al Cannon, Managing Director at NNP

Do your employees understand their 401(k)?

Good employers are always striving to do the right things for their employees, and providing them with a retirement plan is a prime example of this. In addition to offering employer-provided benefits, like a 401(k) plan, it’s crucial that the company takes the time to educate their employees on these benefits.

There are a number of ways companies can educate employees on their 401(k) plan. Some ways include:

Inform new employees: provide information in employee handbooks or utilize payroll stuffers, flyers or posters around the office so new employees are aware the plan exists.

  • Explain the enrollment process: schedule enrollment meetings or provide enrollment books so employees can understand how to get started and how to choose the appropriate investments.
  • Discuss regularly: conduct annual or continuing education meetings that can be used to keep participants informed on how and why to save and invest.
  • Provide resources: share the 401(k) website with employees, which has many tools for investment planning and forecasting. Resources like this help employees understand when they can afford to retire. Share these tools through meetings, handouts or email.

Nachman Norwood & Parrott understands the importance of education in retirement planning. Read what criteria companies must meet when offering a 401(k) plan and more information on how companies can educate their employees by downloading NNP’s second quarter newsletter on the Nachman Norwood & Parrott website.

Warm regards,

Nachman Norwood & Parrott

Wealth Management Consultancy

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC, a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. Nachman Norwood & Parrott Wealth Management Consultancy is a separate entity from WFAFN.

Nachman Norwood & Parrott and Wells Fargo Advisors Financial Network are not tax or legal advisors.

Tax Deadlines

Tax season is upon us! Please remember that the team at Nachman Norwood & Parrott is here to help you. With your approval, we are happy to coordinate with your CPA to not only ensure timely delivery of your NNP tax information but to also collaborate on tax-saving strategies. We are ready to assist with any questions that may arise. Please let us know how we can help you!

Tax Deadline is April 18, 2017. You still have until that date to make a 2016 contribution to the following accounts: Traditional IRA, Roth IRA, Health Savings Account (HSA), and SC Future Scholar 529. Call us if you would like to discuss any last minute contributions; we are here to help.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC, a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. Nachman Norwood & Parrott Wealth Management Consultancy is a separate entity from WFAFN.

Nachman Norwood & Parrott and Wells Fargo Advisors Financial Network are not tax or legal advisors.