No Creditor Protection for Inherited IRAs

On June 12 the Supreme Court ruled that Inherited IRAs no longer offer protection from creditors. In the past all types of IRAs offered creditor protection. With this ruling, IRAs that you inherit are stripped of that protection. Other types of IRAs still offer protection from creditors. If you are a spouse inheriting an IRA you can change the inherited IRA into your own IRA which would grant it protection from creditors.

To read more about the ruling: Inherited IRAs lose bankruptcy protection

Why “Fee Based” = “Fee and Commission”

There’s and interesting article in today’s WSJ about how brokers are calling themselves “Fee Based” advisors to make themselves sound like “Fee-Only” advisors.  Fee-Only advisors are almost always are fiduciaries in all aspects of their work, where Fee-Based advisors almost never are.  The article points out that Fee-Based advisors are really “Fee and Commission” and make money from selling products to clients and have all of the inherent conflicts of interests that entails.

Chicago Public Radio Interview

I was interviewed on Chicago Public Radio about retirement planning.  I was able to make the point that many small companies have 401k plans with hidden fees, that could cost employees a good chuck of their retirement savings.  Even worse, because the fees are hidden there are unaware of how much they are losing.